TORONTO, ONTARIO--(Marketwire - Nov. 22, 2012) - North Sea Energy Inc. ("NSE" or the "Company") (TSX VENTURE:NUK) announces its unaudited financial results for the period ended September 30, 2012. The summary of the selected financial information should be read in conjunction with the Company's Condensed Interim Consolidated Financial Statements (Unaudited) and the related Management Discussion and Analysis for the quarter ended September 30, 2012 dated November 22, 2012, which have been filed on SEDAR (www.sedar.com).
Highlights & Recent Events
- 27th UKCS Licensing round results: 3 new blocks awarded (Block(s) 14/29b, 13/23 and 13/24c)
- First tranche of $3,800,000 of convertible debenture financing closed on November 22, 2012 in a non-brokered private placement of up to $10,000,000 of convertible debentures
- 2D High resolution seismic program completed on Norfolk Prospect (Block(s) 12/16b, 12/17b)
- Independent Economic Evaluation completed on 3 prospects
- Premier Oil exercised its option right for 50% of Badger, licence P.1920
- Cash on hand $3,115,031 (December 31, 2011, $5,389,699)
- Working capital $1,532,114 (December 31, 2011, $3,833,599)
Independent Economic Evaluation Complete on 3 Prospects
On September 5, 2012, the Company announced the results of an Independent Economic Evaluation ("IEE") for three of its UK North Sea blocks. These include its 50% owned Badger prospect (block 12/30), its 50% owned Bobcat prospect (block 13/28b) and its 20% owned Norfolk prospect (blocks 12/16b and 12/17b), all located in the UK North Sea. The IEE has been completed by Acquidis Limited ("Acquidis"), a UK based consulting firm utilizing the resource and geologic information developed by Sproule International Limited ("Sproule") and Senergy (GB) Ltd. ("Senergy"). For more information, refer to NSE's press release dated September 5, 2012.
October 5, 2012, the Company announced 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.
27th Seaward Licensing Round
On October 26, 2012, the Company announced that the UK Department of Energy and Climate Change (DECC) has published the initial tranche of offers for licences in the 27th Seaward Licensing Round in the UK North Sea. NSE, together with its partner, EnCounter Oil Limited ("EnCounter Oil"), has been offered two new promote licences in the UK North Sea in the 27th Seaward Licensing Round, namely - blocks 13/24c and 13/25 (NSE - 40% interest), and block 14/29b (NSE - 40% interest). NSE holds its interest in these prospects through its wholly-owned subsidiary, North Sea Energy (UK No2) Limited.
EnCounter Oil is a new exploration company set up by the former senior exploration team of EnCore Oil plc. This team was involved in discovering the Buzzard Oil field and Catcher Oil discovery.
2D High Resolution Seismic on Norfolk
On November 19, 2012, the Company announced that a 2D hi-resolution seismic program on the Norfolk Prospect (block 12/16b) (20% NSE interest) has been completed after receiving approval from DECC (UK Department of Energy and Climate Change).
The weather during November has been kind and allowed the Company to acquire more data than the base plan. This will allow the Company to test 3D migrating the data and/or creating a Geocube product.
The processing of the additional seismic will enhance the Company's understanding of the prospect in terms of the 'up dip' extent of the Norfolk prospect and assist in the determination of the drilling target. The acquiring of the seismic data during 2012 allows the Company to progress its evaluation of the prospect and to make a drilling decision sooner and without delay to the project.
On November 22, 2012, the Company announced that it has closed the first tranche of a non-brokered private placement (the "Private Placement") of unsecured convertible debentures (the "Debentures") for gross proceeds of $3,800,000. If there is additional interest, a second and final tranche of the private placement will close on or before December 17, 2012 (or there about) for gross proceeds up to $10,000,000.
The subscription price per Debenture is $1,000. Interest on the Debentures is 7.75%, payable semi-annually, for a term of five years from the issue date. The Debentures are convertible into common shares of the Company (the "Common Shares") at the holder's option at any time after four months from the date of issuance at a price of $0.45 per Common Share (the "Conversion Price") and upon 20 business days' notice to the Company. The Company may elect to convert the Debentures on each anniversary date of the date of issuance of the Debentures at the Conversion Price. The Company shall have the right at any time after December 1, 2015 to repay all or a portion of the Debentures without the consent of the holders, subject to the right of the holders to convert prior to such prepayment. The Debentures will be subject to a hold period expiring on March 23, 2013.
The Company will pay a finder's fee equal to 5% of the gross proceeds of the Private Placement.
The proceeds of the Private Placement will be used to fund the Company's exploration and development program in the North Sea and for general working capital purposes.
The Private Placement is subject to final approval by the TSX Venture Exchange and any other applicable securities legislation.
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 twelve blocks in the North Sea.
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.
North Sea Energy Inc.
J. Craig Anderson
Auburn Partners Inc.