Norse Energy announces Herkimer joint venture with Stryker Energy
BUFFALO – The natural gas production company Norse Energy Corp. has commenced drilling into the Herkimer Sandstone in Chenango County after an almost six month hiatus while it conducted seismic tests to illuminate subsurface prospects.
The company is targeting between seven and nine Herkimer sites by the end of the year, and plans to begin a drilling program of 30 Herkimer wells in 2011 with a new business partner.
The New York State Department of Environmental Conservation’s Mineral Resources Division has granted permits for at least a dozen Norse applications. The company has about 30 more in various stages of regulatory approval.
“We hope to have ongoing activities from this point forward and continue contributing to the local tax base as a result,” said Norse Vice President Dennis Holbrook.
The drilling in question is not hydraulic fracturing, a controversial process that utilizes large quantities of pressurized water, chemicals, sand and soap to release natural gas from fissures in tight shale formations. Holbrook said the only water used to drill into sandstone is for cooling the pipe.
“That concept of using water to open up the rock is not something that we do at all,” he said Wednesday.
The company recently entered a joint venture partnership with Stryker Energy, LLC, an Appalachian Basin oil and gas operator based in Ohio. Stryker Energy will be a 50 percent working interest partner, and funding has been received for the first three wells.
Norse and Stryker have successfully explored and developed other central New York properties under previous joint venture agreements. Since its inception in 2004, Stryker has drilled or participated in the drilling of 185 wells in Pennsylvania and New York.
Norse Energy has a significant land position of 180,000 net acres in upstate New York.
“Stryker has reviewed our new 3D seismic data and provides further validation of the Herkimer play in Central New York. We welcome Stryker Energy as our partner and we look forward to a successful drilling program," said Mark Dice, CEO of Norse.
The company also owns a natural gas marketing business and operates pipeline systems in New York and Pennsylvania for gathering and transmission of natural gas. It recently began construction on a new pipeline interconnection arrangement with Dominion Transmission pipelines located near Morrisville. The new tap provides Norse Energy with additional capacity to support an expected ramp up in production from the Herkimer sandstone.
According to the Chenango County Planning Department, there are 157 wells in different stages of permitting, drilling and producing, including some that have been plugged an abandoned. Of that number, there are 28 active wells in Smyrna, six in Plymouth, two in Preston and between 10 and 15 pending permits.
According to Holbrook, Norse Energy invested $73 million in 2008 and $40 million in 2009 on natural gas production in Chenango County.
The company is targeting between seven and nine Herkimer sites by the end of the year, and plans to begin a drilling program of 30 Herkimer wells in 2011 with a new business partner.
The New York State Department of Environmental Conservation’s Mineral Resources Division has granted permits for at least a dozen Norse applications. The company has about 30 more in various stages of regulatory approval.
“We hope to have ongoing activities from this point forward and continue contributing to the local tax base as a result,” said Norse Vice President Dennis Holbrook.
The drilling in question is not hydraulic fracturing, a controversial process that utilizes large quantities of pressurized water, chemicals, sand and soap to release natural gas from fissures in tight shale formations. Holbrook said the only water used to drill into sandstone is for cooling the pipe.
“That concept of using water to open up the rock is not something that we do at all,” he said Wednesday.
The company recently entered a joint venture partnership with Stryker Energy, LLC, an Appalachian Basin oil and gas operator based in Ohio. Stryker Energy will be a 50 percent working interest partner, and funding has been received for the first three wells.
Norse and Stryker have successfully explored and developed other central New York properties under previous joint venture agreements. Since its inception in 2004, Stryker has drilled or participated in the drilling of 185 wells in Pennsylvania and New York.
Norse Energy has a significant land position of 180,000 net acres in upstate New York.
“Stryker has reviewed our new 3D seismic data and provides further validation of the Herkimer play in Central New York. We welcome Stryker Energy as our partner and we look forward to a successful drilling program," said Mark Dice, CEO of Norse.
The company also owns a natural gas marketing business and operates pipeline systems in New York and Pennsylvania for gathering and transmission of natural gas. It recently began construction on a new pipeline interconnection arrangement with Dominion Transmission pipelines located near Morrisville. The new tap provides Norse Energy with additional capacity to support an expected ramp up in production from the Herkimer sandstone.
According to the Chenango County Planning Department, there are 157 wells in different stages of permitting, drilling and producing, including some that have been plugged an abandoned. Of that number, there are 28 active wells in Smyrna, six in Plymouth, two in Preston and between 10 and 15 pending permits.
According to Holbrook, Norse Energy invested $73 million in 2008 and $40 million in 2009 on natural gas production in Chenango County.
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