North Sea Energy Inc.
TSX VENTURE : NUK

North Sea Energy Inc.

April 20, 2012 16:30 ET

North Sea Energy Announces Year End Results for 2011 and Proposed Extension of Options

2011 Year End Financial Results

TORONTO, ONTARIO--(Marketwire - April 20, 2012) - North Sea Energy Inc. ("NSE" or the "Company") (TSX VENTURE:NUK) is pleased to announce that today its financial results for the 12 months ended December 31, 2011 have been filed on SEDAR (www.sedar.com) along with the related management discussion and analysis. For more detailed information relating to the Company's year end results, please refer to the financial statements along with the related management discussion and analysis in NSE's SEDAR filing.

Financial highlights for the year ended December 31, 2011:

  • Cash on hand $5,389,699 (2010: $6,699,314)

  • Cash flow from operations of $2,842,033 (2010: $12,763,723)

  • (Loss) earnings before interest, taxes, depreciation and amortization (EBITDA1, a non-IFRS measure) $(1,794,158) (2010: $14,738,612)

  • Current liabilities $3,082,798 (2010: $3,942,466)

1EBITDA is a non-IFRS performance measures. This measure is not defined under IFRS and therefore should not be considered in isolation or as an alternative to or more meaningful than, net income (loss) or cash flow from operating activities as determined in accordance with IFRS as an indicator of our financial performance or liquidity. The Company believes that, in addition to conventional measures prepared in accordance with IFRS, certain investors use this information to evaluate the Company's performance and ability to generate cash flow. EBITDA was calculated as income before taxes before interest expense, depreciation and amortization (including impairment charge).

Selected Annual Information

As at and for the year ended
December 31,
2011
CAD ($)
(except per
share data)
December 31,
2010
CAD ($)
(except per
share data)
December 31,
2009
CAD ($)
(except per
share data)
Assets 23,231,776 28,493,525 33,661,953
Long-term liabilities 2,831,221 4,658,163 4,425,179
Shareholders' Equity 17,317,757 19,892,896 17,181,416
Revenues 7,355,434 22,710,917 15,039,137
(Loss) income before income tax expense (6,365,186) 5,117,323 (260,779)
Net (loss) income (5,064,186) 2,952,323 (213,779)
Total comprehensive (loss) income for the period (4,998,860) 2,702,483 (364,769)
Basic net (loss) income per share (0.0913) 0.0811 (0.0059)
Diluted net (loss) income per share (0.0913) 0.0694 (0.0059)

Extension of Options

NSE also announces that its Board of Directors has approved and it has applied to the TSX Venture Exchange (the "Exchange") for approval to extend the expiry date of 9,075,527 options that were issued to certain directors, officers and senior management on January 28, 2008 (the "Options"). The Options are exercisable for common shares of NSE, at a price of $0.333 per share, and will currently expire on January 28, 2013. The Company proposes to extend the expiry date of the Options to January 28, 2018 (the "Extension"). The Extension is subject to receipt of disinterested shareholder approval at NSE's upcoming annual and special meeting on June 6, 2012 and Exchange approval.

About North Sea Energy Inc.

NSE (TSX VENTURE:NUK) is a UK-focused oil and gas exploration and production ("E&P") company listed on the TSX Venture Exchange. NSE is producing light oil from the Jacky field, located in the Inner Moray Firth off the Scottish coast and has acquired an interest in nine blocks in the North Sea.

Forward-looking statements

Except for statements of historical fact, this news release contains certain "forward-looking information" within the meaning of applicable securities law. Forward-looking information is frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate" and other similar words, or statements that certain events or conditions "may" or "will" occur. Although we believe that the expectations reflected in the forward-looking information are reasonable, there can be no assurance that such expectations will prove to be correct. We cannot guarantee future results, performance or achievements. Consequently, there is no representation that the actual results achieved will be the same, in whole or in part, as those set out in the forward-looking information. Forward-looking information is based on the opinions and estimates of management at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those anticipated in the forward-looking information.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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