Mr. Craig Anderson reports

NORTH SEA ENERGY PROVIDES AN UPDATE ON THE BAGPUSS PROSPECT

North Sea Energy Inc. has provided an update regarding its Bagpuss prospect following the operational and technical committee meeting held in Aberdeen, Scotland, on June 10, 2015. The company has been advised by Premier Oil U.K. Ltd., the operator, that the joint venture is working toward a spud date for the Bagpuss well, located in Block 13/24c of the United Kingdom North Sea, in the first half of 2016. Both Premier and Maersk Oil U.K. Ltd. are committed to drilling the Bagpuss well, subject to United Kingdom Oil and Gas Authority (OGA) and final internal approvals. A semi-submersible rig will be used and options to contract the rig are under evaluation to optimize costs. The well location, provided by Encounter Oil PLC, is 67 metres to the west of the original location based on the analysis of the seismic site survey, which was acquired in September, 2014.

The Bagpuss well targets Lower Cretaceous sands, Jurassic sands and a granite wash formation that is only 1,400 feet subsurface (please refer to the company's press release dated June 27, 2013), for the independent prospective resource assessment of United Kingdom North Sea blocks 13/24c and 13/25, "Bagpuss and Blofeld Prospects," issued by Senergy (GB) Ltd. on June 25, 2013, in accordance with National Instrument 51-101 with an effective date of May 30, 2013. The company's costs pertaining to the drilling of the initial Bagpuss prospect well are 100 per cent financed through its farm-in agreement with Maersk, subject to a cap, as are 50 per cent of North Sea Energy's costs of a Bagpuss subsequent well, should one be drilled, also subject to a cap.

The joint venture partners in the Bagpuss prospect are Premier (operator) (37.5 per cent), Maersk (25 per cent), Encounter (15 per cent), Groliffe Ltd. (7.5 per cent) and North Sea Energy (U.K. No. 2) Ltd. (a wholly owned subsidiary of North Sea Energy) (15 per cent).

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