North Sea Energy Inc.
TSX VENTURE : NUK

North Sea Energy Inc.

October 05, 2012 10:50 ET

North Sea Energy Receives Formal Notice of Option Exercise by Premier Oil on Block 12/30 'Badger Prospect'

TORONTO, ONTARIO--(Marketwire - Oct. 5, 2012) - North Sea Energy Inc. ("NSE" or the "Company") (TSX VENTURE:NUK) is pleased to announce that its wholly owned subsidiary, Echo Exploration Limited, was awarded UK Licence P1920, as part of the 26th licensing round. This licence covers UKCS Block 12/30 and contains the Badger Prospect.

In addition, Premier Oil has exercised its option right to require transfer of a 50% interest in UKCS Block 12/30 pursuant to an April 28, 2010 Agreement between Encore Oil and Echo Exploration Limited. This transfer is subject to the consent of the Department of Energy and Climate Change. Premier completed the acquisition of Encore on January 16, 2012.

About the Badger Prospect

The Badger Prospect is located in the Inner Moray Firth about 28 km southwest of the Captain field, and is a structural/stratigraphic trap with a Lower Cretaceous Punt sandstone reservoir objective. The forward work programme will focus on further delineation of the Badger prospect and mitigation of the critical risk elements. The nearest oil and gas discovery to the block is the well 13/26-2 (Dee discovery) about 15 km to the southeast.

About North Sea Energy Inc.

NSE 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. In particular, forward-looking information in this press release includes, but is not limited to, statements with respect to timing and completion of the Transaction (including receipt of TSX-V approval), oil reserves and future revenues. 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. Some of the risks and other factors that could cause the results to differ materially from those expressed in the forward-looking information include, but are not limited to: general economic conditions in Canada, the United States, UK and globally; industry conditions, including fluctuations in the prices of oil and natural gas; governmental regulation of the oil and gas industry, including environmental regulation; unanticipated operating events or performance which can reduce production or cause production to be shut in or delayed; failure to obtain industry partner and other third party consents and approvals, if and when required; competition for and/or inability to retain drilling rigs and other services; the availability of capital on acceptable terms; the need to obtain required approvals from regulatory authorities; stock market volatility; volatility in market prices for oil and natural gas; liabilities inherent in oil and natural gas operations; competition for, among other things, capital, acquisitions of reserves, undeveloped lands, skilled personnel and supplies; incorrect assessments of the value of acquisitions; geological, technical, drilling, processing and transportation problems; changes in tax laws and incentive programs relating to the oil and gas industry; failure to realize the anticipated benefits of acquisitions and dispositions; and the other factors. Readers are cautioned that this list of risk factors should not be construed as exhaustive.

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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