OSLO, NORWAY – Norse Energy Corp. has announced that its corporate resources will be reallocated to focus on natural gas production within the Marcellus and Utica shale formations.
In anticipation that rules allowing the use of high volume hydraulic fracturing to develop natural gas resources in the state of New York will soon be in place, Norse Energy has elected to immediately suspend Herkimer drilling. This will preserve cash for potentially more profitable Marcellus and Utica Shale planning, permitting and development, according to a press release issued this morning.
Subsequent to release of the draft SGEIS on July 8, Norse Energy filed its first application for a permit to drill a shale well in New York State using high volume hydraulic fracturing. The permit is expected to be issued when final SGEIS regulations are in place. This strategy transition is expected to facilitate rapid and efficient development of the company’s Marcellus and Utica Shale resources.
“With the SGEIS public comment period expected to begin soon, now is the right time to re-focus the company on the development of shale resources across our extensive acreage position in New York State,” said Chief Executive Officer Mark Dice.
Norse Energy has total contingent resources of 3.9 trillion cubic feet of natural gas at the end of 2010. The company has a significant land position of 180,000 net acres in New York State, mostly in Chenango and Madison counties.