OSLO, NORWAY – Despite posting a net loss for 2010, Norse Energy officials expressed optimism last week about the future of the company’s position in Central New York’s budding natural gas industry.
“We really believe at Norse Energy, the best is yet to come,” CEO Mark Dice said last Tuesday, during a presentation to investors in Oslo, Norway.
The company is currently focusing on development of its Herkimer assets in the 130,000 acres it has under lease in the region, while it waits for New York State to finalize regulations regarding large volume hydro-fracking, which will be required to develop its more bountiful shale resources, which include the Marcellus and Utica plays.
In his fourth quarter and year end financial update, CFO Richard Boughrum reported a $57,249,000 net loss for 2010.
“It’s good to be drilling again,” he said.
But the path forward for the company will also include restructuring, Boughrum told investors, including the sale or monetization of non-core assets.
The CFO reported that the company expects to close within the next 60 days on the sale of Norse Pipeline and Mid American Natural Resources to Appalachian Transportation & Marketing LLC., headed by former Norse Energy CEO Oivind Risberg. The $20.7 million deal, which is contingent on approval from the New York State Public Service Commission, will yield $15 million in cash for Norse and reduce its debt by $4 million.