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North Sea Energy Announces Convertible Debenture Update

TORONTO, ONTARIO — (Marketwired) — 12/01/14 — North Sea Energy Inc. (“NSE” or the “Company”) (TSX VENTURE: NUK) is pleased to announce that it has reached an agreement with the holder of the $3,800,000 convertible debenture of the Company (the “Debenture”) regarding the Debenture issued on November 22, 2012. Please refer to the Company–s press release from November 22, 2012 for details of the Debenture.

The holder has agreed to defer interest payable (including the interest payment that was due on November 22, 2014) and all future interest payments payable by the Company to the Subscriber, until the Company has received and closed a minimum of CAD$2,500,000 of financing. This financing is to be arranged by Deer Creek Capital. The Company for its part has agreed not to exercise its Debenture conversion option as of November 22, 2014.

If by July 1, 2015 such financing is not received by the Company, the deferred interest payments (November 22, 2014 and May 22, 2015) shall be cancelled and no amount shall be payable by the Company to the Subscriber with respect thereto. In addition, the Company may exercise the Company conversion option within ten business days of July 1, 2015 at the conversion price ($0.45 per common share).

About North Sea Energy Inc.

North Sea Energy Inc. (TSX VENTURE: NUK) is an oil and gas company that holds a portfolio of high impact interests focused on the Moray Firth in the offshore UK North Sea. These interests include Bagpuss and Blofeld (blocks 13/24c and 13/25), Norfolk (blocks 12/16b and 12/17b), Cloud (block 14/29b), Del Monte (block 19/3) and Golden Phoenix (block 18/10a).

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. 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, including the proceeds of the financing 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.

Pursuant to Multilateral Instrument 61-101 Protection of Minority Security Holders in Special Transactions (“MI 61-101”), the agreement described above may be considered a “related party transaction” for the Company. For this transaction, the Company relied on the exemption from the formal valuation requirements of MI 61-101 contained in sections 5.5(a) & (b) of MI 61-101 and relied on the exemption from the minority shareholder approval requirements of MI 61-101 contained in section 5.7(1)(a) of MI 61-101.

Contacts:
North Sea Energy Inc.
J. Craig Anderson
Chairman & CEO
416-366-4700

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