North Sea still in talks with Gemini for settlement

2017-05-26 08:56 ET - News Release


Mr. Ian Lambert reports
NORTH SEA ENERGY ANNOUNCES RESULTS FOR Q1 2017
North Sea Energy Inc.'s financial results for the quarter ended March 31, 2017, along with the related management discussion and analysis, have been filed on SEDAR. For more detailed information relating to the company's current quarter results, please refer to the financial statements along with the related MD&A files on SEDAR.
Highlights and significant developments for the quarter ended March 31, 2017
Bagpuss update
On Jan. 17, 2017, the company announced the following update regarding the Bagpuss and Blofeld licence P.1943:

• The U.K. Oil and Gas Association (OGA) approves licence renewal for Bagpuss: The OGA has agreed, in principle, subject to the usual regulatory consents and certain conditions, to the continuation of the Bagpuss licence into the second four-year term.
• Maersk Oil North Sea U.K. Ltd. reassigns interests in Bagpuss licence: Maersk and the Bagpuss joint venture reassigned Maersk's 25-per-cent working interest in the Bagpuss on a prorate basis. Upon final approval by the OGA, North Sea Energy's working interest in Bagpuss increased from 15 per cent to 20 per cent. The working interests in the Bagpuss JV going forward are as follows: Encounter -- 17.67 per cent; Groliffe -- 8.83 per cent; North Sea Energy -- 20.0 per cent; Reach Halibut Ltd. -- 53.5 per cent; and Total -- 100 per cent.

Management and board changes
On Jan. 20, 2017, the company announced the following management changes and board changes:

• J. Craig Anderson, chairman and chief executive officer of North Sea Energy, and Petya Popova, chief financial officer, decided to leave the company, effective immediately, to pursue other interests. Ian Lambert, a director of North Sea Energy and former CEO of Trade Winds Ventures assumed the role of interim CEO and CFO. Both Mr. Anderson and Ms. Popova have expressed their willingness to assist North Sea Energy in order to ease in the transition. As a result of the management changes, C. Brent Austin and Larry Leblanc, directors of North Sea Energy, resigned effective Jan. 19, 2017.
• On Feb. 7, 2017, the company announced that Harvey M. Lawson and D. Brett Whitelaw were appointed to the board of directors of the company, effective Jan. 30, 2017. Mr. Lambert was appointed CEO.
• On March 20, 2017, the company announced the appointment of Scott Davis, CPA, CGA, as chief financial officer of the company. As a result of this appointment, the audit committee consists of Mr. Lambert, Mr. Lawson and Mr. Whitelaw.

Change of auditors
The company announced that it changed its auditors from Grant Thornton LLP to Dale Matheson Carr-Hilton Labonte LLP, chartered accountants, effective March 17, 2017.
There were no reservations in the former auditors' reports for the two most recently completed fiscal years or for any period subsequent to the more recently completed period for which an audit report was issued and preceding the date of the former auditors' resignation. There were no reportable events between the company and the former auditors.
Gemini negotiations
The company and Gemini have intensified their discussions to reach a settlement agreement pertaining to the current $8,456,220 outstanding amount as a result of an arbitration decision.

                          SELECTED QUARTERLY INFORMATION

                               As at and for the three months ended
                                    March 31, 2017    March 31, 2016

Assets                                    $624,605        $1,041,932
Long-term liabilities                       27,435            11,657
Shareholders' deficit                   (8,566,277)       (7,238,623)
Revenues                                      0                 0
(Loss) before income tax expense         (448,951)         (319,681)
Net (loss)                               (448,951)         (319,681)
Total comprehensive (loss)/income for the
period                                   (366,897)          273,910
Basic and diluted net (loss) per share      (0.01)            (0.01)

About North Sea Energy Inc.
The company, founded in February, 2007, is a United Kingdom-focused oil and gas exploration and appraisal company quoted on the TSX Venture Exchange. North Sea Energy, along with its wholly owned subsidiary, North Sea Energy (U.K. No. 2) Ltd., holds two high-impact opportunities in the U.K. North Sea.
We seek Safe Harbor.