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North Sea Energy Announces an Independent Prospective Resource Assessment Completed on the Bagpuss and Blofeld Prospects

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TORONTO, ONTARIO -- (Marketwired) -- 06/27/13 -- North Sea Energy Inc. ("NSE" or the "Company") (TSX VENTURE: NUK) is pleased to announce that it has recently received an independent Prospective Resource Assessment of UK North Sea Blocks 13/24c and 13/25, "Bagpuss and Blofeld Prospects", issued by Senergy (GB) Limited ("Senergy") on June 25, 2013 in accordance with NI 51-101 (the "Report") with an effective date of May 30, 2013. North Sea Energy (UK NO2) Limited, the Company's wholly- owned subsidiary, is the licence holder of these blocks.

The following tables summarise the results of the assessment of the Gross Undiscovered Prospective Resources within the Bagpuss and Blofeld Prospects in Blocks 13/24c and 13/25.

----------------------------------------------------------------------------Bagpuss and Blofeld Prospects (UK Block 13/24c and 13/25)Undiscovered Oil in Place and Prospective Resources(1)(Unrisked)Gross(2)(as of 30th May 2013)---------------------------------------------------------------------------- Low(3) Best(3) High(3) Estimate Estimate Estimate Mean MMbo MMbo MMbo MMbo---------------------------------------------------------------------------- Stock-Tank-Oil-Initially-In-Place----------------------------------------------------------------------------Bagpuss Prospect 106 491 2,173 925----------------------------------------------------------------------------Blofeld Prospect 103 385 1,386 615----------------------------------------------------------------------------Total(4) 208 876 3,559 1,539-------------------------------------------------------------------------------------------------------------------------------------------------------- Prospective Resources----------------------------------------------------------------------------Bagpuss Prospect 16 77 360 151----------------------------------------------------------------------------Blofeld Prospect 15 61 234 101----------------------------------------------------------------------------Total(4) 31 138 594 252----------------------------------------------------------------------------Table S1: Bagpuss and Blofeld Prospects: Gross Oil Undiscovered in Place andProspective Resources (Unrisked)(1) Prospective resources are those quantities of oil and gas estimated, as of a given date, to be potentially recoverable from undiscovered accumulations by application of future development projects. Resource categories are as defined in the Canadian Oil and Gas Evaluation Handbook (COGEH).(2) Gross means the proportion of the oil-in-place volumes and prospective resources in Blocks 13/24c and 13/25. Volumes are expressed as Million stock tank barrels (MMstb) for oil.(3) Low, Best and High Estimate: in a probabilistic resource size distribution these are the P90 (90% probability), P50, and P10, respectively.(4) This volume is an arithmetic sum of multiple estimates of Prospective Resources, which statistical principles indicate may be misleading as to volumes that may actually be in place or recovered. Readers should give attention to the estimates of individual classes of resources and appreciate the differing probabilities of recovery associated with each class as explained in this report. Note that totals may not sum exactly due to rounding.----------------------------------------------------------------------------Bagpuss Prospect (UK Block 13/24c and 13/25)Undiscovered Oil in Place and Prospective Resources(1)(Unrisked)Gross(2)(as of 30th May 2013)---------------------------------------------------------------------------- Low(3) Best(3) High(3) Estimate Estimate Estimate Mean MMbo MMbo MMbo MMbo---------------------------------------------------------------------------- Stock-Tank-Oil-Initially-In-Place----------------------------------------------------------------------------Lower Cretaceous 67 284 1,127 484----------------------------------------------------------------------------Basement/Granite wash 31 148 652 277----------------------------------------------------------------------------Basement/Granite 8 59 394 163----------------------------------------------------------------------------Total(4) 106 491 2,173 925-------------------------------------------------------------------------------------------------------------------------------------------------------- Prospective Resources----------------------------------------------------------------------------Lower Cretaceous 10 48 210 88----------------------------------------------------------------------------Basement/Granite wash 5 25 121 50----------------------------------------------------------------------------Basement/Granite 0.5 4 29 12----------------------------------------------------------------------------Total(4) 16 77 360 151----------------------------------------------------------------------------Table S2: Bagpuss Prospect: Gross Oil Undiscovered in Place and ProspectiveResources (Unrisked)----------------------------------------------------------------------------Blofeld Prospect (UK Block 13/24c and 13/25)Undiscovered Oil in Place and Prospective Resources(1)(Unrisked)Gross(2)(as of 30th May 2013)---------------------------------------------------------------------------- Low(3) Best(3) High(3) Estimate Estimate Estimate Mean MMbo MMbo MMbo MMbo---------------------------------------------------------------------------- Stock-Tank-Oil-Initially-In-Place----------------------------------------------------------------------------Lower Cretaceous 60 205 672 304----------------------------------------------------------------------------Jurassic 10 33 102 47----------------------------------------------------------------------------Basement/Granite wash 27 105 372 166----------------------------------------------------------------------------Basement/Granite 7 41 240 97----------------------------------------------------------------------------Total(4) 103 385 1,386 615-------------------------------------------------------------------------------------------------------------------------------------------------------- Prospective Resources----------------------------------------------------------------------------Lower Cretaceous 9 35 127 55----------------------------------------------------------------------------Jurassic 1.5 6 19 9----------------------------------------------------------------------------Basement/Granite wash 4 18 70 30----------------------------------------------------------------------------Basement/Granite 0.4 3 17 7----------------------------------------------------------------------------Total(4) 15 61 234 101----------------------------------------------------------------------------Table S3: Blofeld Prospects: Gross Oil Undiscovered in Place and ProspectiveResources (Unrisked)



The following tables summarise the results of the assessment of the Net Undiscovered Prospective Resources attributable to NSE within the Bagpuss and Blofeld Prospects in Blocks 13/24c and 13/25:

----------------------------------------------------------------------------Bagpuss and Blofeld Prospects (UK Block 13/24c and 13/25)Undiscovered Oil in Place and Prospective Resources(1)Net(5)(as of 30th May 2013)---------------------------------------------------------------------------- Low(3) Best(3) High(3) Estimate Estimate Estimate Mean MMbo MMbo MMbo MMbo---------------------------------------------------------------------------- Stock-Tank-Oil-Initially-In-Place----------------------------------------------------------------------------Bagpuss Prospect 42 196 869 370----------------------------------------------------------------------------Blofeld Prospect 41 154 554 246----------------------------------------------------------------------------Total(4) 83 350 1,424 616-------------------------------------------------------------------------------------------------------------------------------------------------------- Prospective Resources----------------------------------------------------------------------------Bagpuss Prospect 6 31 144 60----------------------------------------------------------------------------Blofeld Prospect 7 24 94 40----------------------------------------------------------------------------Total(4) 13 55 237 101----------------------------------------------------------------------------Table S4: Bagpuss and Blofeld Prospects: Net Oil Undiscovered in Place andProspective Resources Attributable to North Sea Energy (Unrisked)----------------------------------------------------------------------------Bagpuss Prospect (UK Block 13/24c and 13/25)Undiscovered Oil in Place and Prospective Resources(1)(Unrisked)Net(5)(as of 30th May 2013)---------------------------------------------------------------------------- Low(3) Best(3) High(3) Estimate Estimate Estimate Mean MMbo MMbo MMbo MMbo---------------------------------------------------------------------------- Stock-Tank-Oil-Initially-In-Place----------------------------------------------------------------------------Lower Cretaceous 27 114 451 194----------------------------------------------------------------------------Basement/Granite wash 12 59 261 111----------------------------------------------------------------------------Basement/Granite 3 24 158 65----------------------------------------------------------------------------Total(4) 42 196 869 370-------------------------------------------------------------------------------------------------------------------------------------------------------- Prospective Resources----------------------------------------------------------------------------Lower Cretaceous 4 19 84 35----------------------------------------------------------------------------Basement/Granite wash 2 10 48 20----------------------------------------------------------------------------Basement/Granite 0.2 2 12 5----------------------------------------------------------------------------Total(4) 6 31 144 60----------------------------------------------------------------------------Table S5: Bagpuss Prospect: Net Oil Undiscovered in Place and ProspectiveResources Attributable to North Sea Energy (Unrisked)(5) Net means the proportion of the resources in Blocks 13/24c and 13/25 attributable to NSE. NSE currently has a 40% working interest in the blocks. Volumes are expressed as Million stock tank barrels (MMstb) for oil.----------------------------------------------------------------------------Blofeld Prospect (UK Block 13/24c and 13/25)Undiscovered Oil in Place and Prospective Resources(1)(Unrisked)Net(5)(as of 30th May 2013)---------------------------------------------------------------------------- Low(3) Best(3) High(3) Estimate Estimate Estimate Mean MMbo MMbo MMbo MMbo---------------------------------------------------------------------------- Stock-Tank-Oil-Initially-In-Place----------------------------------------------------------------------------Lower Cretaceous 24 82 269 122----------------------------------------------------------------------------Jurassic 4 13 41 19----------------------------------------------------------------------------Basement/Granite wash 11 42 149 67----------------------------------------------------------------------------Basement/Granite 3 17 96 39----------------------------------------------------------------------------Total(4) 41 154 554 246-------------------------------------------------------------------------------------------------------------------------------------------------------- Prospective Resources----------------------------------------------------------------------------Lower Cretaceous 4 14 51 22----------------------------------------------------------------------------Jurassic 0.6 2 8 3----------------------------------------------------------------------------Basement/Granite wash 2 7 28 12----------------------------------------------------------------------------Basement/Granite 0.2 1 7 3----------------------------------------------------------------------------Total(4) 7 24 94 40----------------------------------------------------------------------------Table S6: Blofeld Prospect: Net Oil Undiscovered in Place and ProspectiveResources Attributable to North Sea Energy (Unrisked)



It should be noted that there is no certainty that any portion of the resources will be discovered. If a discovery is made, there is no certainty that it will be commercially viable to produce any portion of the resources or, if it is developed, there is no certainty as to the timing of such development.

About the Bagpuss and Blofeld Prospects

Blocks 13/24c and 13/25 were awarded to EnCounter Oil Ltd as Operator and North Sea Energy (UK NO2) Ltd as Promote Licence P1943 in the UK 27th Round effective from 1st January 2013. North Sea Energy (UK NO2) Limited's working interest in the licence is 40%, EnCounter Oil Ltd - 40%, Groliffe Limited subsequently exercised its right to back in to the licence for a 20% working interest.

The initial work programme was to obtain and reprocess 100km of 2D seismic data and carry out a well analysis, this has now been completed.

No later than 31st December 2014 the Group can, subject to any necessary regulatory approvals, elect to convert the licence to a traditional licence by making a firm commitment to drill a well.

On March 20, 2013, NSE announced that the Company had opened a data room with its joint venture partners to facilitate the potential farm out of the Bagpuss and Blofeld Prospects. The Company is pleased to announce that the data room has generated considerable interest.

The blocks have not been assigned any proved, probable or possible reserves at this time; the resources have been assessed as an unproved property containing prospective resources.

The arithmetic total net to NSE for the 'best estimate' Prospective Resources is 55 MMbo; this is the undiscovered and unrisked total for the Bagpuss and Blofeld Prospects on Blocks 13/24c and 13/25. The arithmetic total net to NSE for the 'best estimate' Undiscovered Oil in Place is 350 MMbo.

The Location of the Resources

Blocks 13/24c and 13/25 are located on the Halibut Horst which is a well defined basement high within the Moray Firth, in the North Sea, United Kingdom. The nearest producing fields are Captain 15 km along trend to the west and Ross which is located immediately off block in the South Halibut Graben. Water depth ranges from around 250 to 400 ft across the blocks.

The Bagpuss and Blofeld Prospects are large well defined structural traps on the culmination of the Halibut Horst. The two prospects are separated by a well defined southwest to northeast trending fault but they may be in communication and share common spill points. Bagpuss lies to the west within 13/24c and 13/25 and Blofeld lies to the east almost entirely in 13/25. A small area of both prospects may lie outside the blocks. Closure to the South is controlled by the main fault that borders the Halibut Horst and the South Halibut Graben. The structure was drilled in 1981 by well 13/24a-2A which was plugged and abandoned. The well was inadequately logged as the basement sequence was encountered much higher than prognosis, although good shows, indicating potentially mobile oil, were encountered in a thin basal sandstone believed to be of Lower Cretaceous age and through the granitic basement. A bottom hole core indicated that the granite may represent granite wash of sedimentary origin, oil shows were also encountered in fractures. It is possible that oil pay exists in the well down to the base of the well indicating a potential column of over 225 ft.. The Captain Field also lies on the Halibut Horst and is believed to contain approximately one billion barrels of 19-21 degrees API, heavy oil, and it has been suggested that more than 35% of this may be recoverable. Although the potential reservoirs in Bagpuss and Blofeld are over 1,000 ft shallower, it is possible that oil quality may be analogous as bottom hole temperatures recorded in well 13/24a-2A indicated higher reservoir temperatures possibly due to higher heatflow from the underlying granite basement.

The Risks and the Level of Uncertainty

The risk associated with an exploration prospect comprises two components: the chance of discovery (or of geological success) and the chance of development. The geological risk assigned for each reservoir interval in the Report is the chance or probability of discovering hydrocarbons in sufficient quantity for them to be tested to the surface and is considered as the chance or probability of the Prospective Resource maturing into a Contingent Resource. The Lower Cretaceous represents a relatively low risk test as sandstones with shows were encountered in the 13/24a-2A well. The chance of development has not been assessed at this stage but a critical factor will be the quality of any hydrocarbons discovered. The oil is likely to be relatively heavy with a high viscosity, although possibly comparable to that in the producing Captain Field where the oil gravity is believed to be in the range of 19 to 21 degrees API.

Significant Positive and Negative Factors

The significant positive factors that we consider relevant to the resource estimate are as follows:

-- The 13/24a-2A well encountered a 29 ft Cretaceous sandstone and a "granite wash" section of at least 200 ft.-- Shows are present in the sandstone and in fractures in the core which could suggest an oil column of over 225 ft.-- The Captain Field, with documented oil in place of 1 billion barrels, together with the extensive shows in 13/24a-2A, indicate a viable charge from an extensive kitchen in the South Halibut Graben onto the Halibut Horst.-- The 2D and 3D seismic database is sufficient to define a potential trap with a significant area.-- Reservoir potential also may exist in older Jurassic sediments, although the presence of sandstones is speculative; feeder canyons could exist in the prospect area, potentially feeding the Claymore sands found in well 14/21a-1.



The significant negative factors that we consider relevant to the resource estimate are as follows:

-- The basal sandstones in well 13/24a-2A have not been adequately logged so there is no proof that an effective reservoir exist over the prospect area.-- The thickness of the Lower Cretaceous, Jurassic and Granite wash intervals are likely to be extremely variable and difficult to predict without significant drilling.-- The granite wash may be tight and not an effective reservoir.-- The degree of biodegradation is uncertain; any oil may be too heavy and viscous for a commercial development.-- There may be limited or ineffective migration pathways into parts the prospect area.-- The Chalk top seal is relatively thin and could be breached; the side seal may not be effective.



Standards Applied and Evaluation Procedures

In compiling this report, Senergy used current geological and engineering knowledge, techniques and computer software. It has been prepared within the Code of Ethics of the Association of Professional Engineers, Geologists and Geophysicists of Alberta (APEGGA). The report adheres to the "best practices" recommended in the COGE Handbook, which are in accordance with principles and definitions established by the Calgary Chapter of the Society of Petroleum Evaluation Engineers.

All available relevant factors were considered in the assessment of this unproved property, including, geological structures, prospective zones, historical drilling and production results, resources have been made, together with an assessment risk factors associated with the chance of discovery. The resource classification methodology used herein complies with the Canadian Oil and Gas Evaluation handbook definitions and guidelines, in accordance with the requirements of National Instrument 51-101.

The potential volumes of oil and prospective resources in the prospects have been assessed using probabilistic methods. The primary objective is in the Lower Cretaceous sandstones that were encountered in the well. Seismic also indicates an older possible Upper Jurassic section that is locally developed in potential canyons over the Blofeld area. The underlying granitic wash section may also be a secondary objective especially where fractured. The granitic basement is also potentially within structural closure and may be a potential reservoir if sufficiently fractured.

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.

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.

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.



Contacts:
North Sea Energy Inc.
J. Craig Anderson
CEO
416-366-4700
canderson@northseaenergy.ca
www.northseaenergy.ca

Auburn Partners Inc.
Investor Relations
647-430-8760
shanda@auburnpartners.com
wesleigh@auburnpartners.com



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