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North Sea Energy Announces Year End Results for 2012 and Provides Operational Update

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TORONTO, ONTARIO -- (Marketwired) -- 04/29/13 -- North Sea Energy Inc. ("NSE" or the "Company") (TSX VENTURE: NUK) is pleased to announce that today its financial results for the twelve months ended December 31, 2012 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.

Highlights and recent events for the year ended December 31, 2012

-- 27th UKCS Licensing round results: 3 new blocks awarded (Block(s) 14/29b, 13/25 and 13/24c)-- Closed $3,800,000 non-brokered private placement financing of convertible debentures (the "Debentures") on November 22, 2012-- 2D High resolution seismic program completed on Norfolk Prospect (Block(s) 12/16b, 12/17b)-- Cash on hand of $6,246,200 at December 31, 2012 (December 31, 2011, $5,389,699)-- Working capital of $3,203,390 at December 31, 2012 (December 31, 2011, $3,833,599)



Selected Annual Information

---------------------------------------------------------------------------- As at and for the year ended ---------------------------------------------- December 31, December 31, December 31, 2012 2011 2010 CAD ($) CAD ($) CAD ($) (except per (except per (except per share data) share data) share data)----------------------------------------------------------------------------Assets 20,695,048 23,231,776 28,493,525----------------------------------------------------------------------------Long-term liabilities 4,772,424 2,831,221 4,658,163----------------------------------------------------------------------------Shareholders' Equity 12,474,196 17,317,757 19,892,896----------------------------------------------------------------------------Revenues 4,075,602 7,355,434 22,710,917----------------------------------------------------------------------------(Loss) income before income tax expense (6,877,775) (6,365,186) 5,117,323----------------------------------------------------------------------------Net (loss) income (5,844,755) (5,064,186) 2,952,323----------------------------------------------------------------------------Total comprehensive (loss) income for the period (5,938,395) (4,998,860) 2,702,483----------------------------------------------------------------------------Basic net (loss) income per share (0.0999) (0.0913) 0.0811----------------------------------------------------------------------------Diluted net (loss) income per share (0.0999) (0.0913) 0.0694----------------------------------------------------------------------------



Reserves

NSE published its reserves information taken from an evaluation dated effective December 31, 2012, prepared by Sproule International Limited ("Sproule") on April 3, 2013 (defined herein as the "Reserve Report"). The Reserve Report includes the Jacky producing field reserves only. Net proved and probable ("2P") reserves as at December 31, 2012 are 48,000 bbls net to NSE (2011: 140,000 bbls).

Update on Data Room for Bagpuss and Blofeld (Blocks 13/24c and 13/25)

On March 20, 2013, NSE announced that the Company had opened a data room with its joint venture partner, EnCounter Oil (40% working interest), to facilitate the potential farming out process for some of the Company's blocks, including Bagpuss and Blofeld (blocks 13/24c and 13/25, NSE - 40% working interest). The Company is pleased to announce that the data room has generated considerable interest.

Update on Badger Prospect (Block 12/30) Work Program

NSE announces that the seismic acquisition program over the Badger prospect in UKCS Block 12/30 has been cancelled (NSE - 50% working interest, Premier Oil - 50% working interest).

UKCS Block 12/30 is a 26th round, two year term promote licence, awarded in January 2012. A work program performed by the Company in the first year of the licence established a new Lower Cretaceous, Coracle channel sandstone prospect which required further seismic data to de-risk the up-dip pinch-out. The prospect is valid and a decision to establish a drilling program may be considered.

NSE is the Licence Administrator and is currently reviewing all options in order to establish a way forward to realise the potential of this block and the Badger prospect.

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.



Contacts:
North Sea Energy Inc.
Craig Anderson
(416) 366-4700
canderson@northseaenergy.ca

Auburn Partners Inc.
Shanda Kilborn & Wesleigh Carusi
647-430-8760
info@auburnparnters.com



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