Norse sells some acreage positions in New York
NORWAY – Norse Energy Corp. has entered into a definitive agreement to sell acreage and overriding royalty interests for cash consideration of $26.7 million to undisclosed and unrelated buyers.
Norse is selling leases and fee interests totaling approximately 22,700 acres in Central New York, overriding royalty interests of 2.5 percent on 24,300 acres that are held by production in Central New York, 3.75 percent on 84,000 non-producing leased and fee acres location in Central New York and 6.25 percent on 33,000 acres located in Western New York.
Not included in this transaction are the company’s proved reserves, including those in the Herkimer formation, much of which is in Chenango County.
“This transaction represents an important first step in providing liquidity for the company and reflects renewed interest in our New York acreage,” commented Norse CEO Mark Dice. “Norse remains hopeful that the SGEIS approval process will be complete so that development of our significant shale resources can commence in 2012,” he concluded.
Following this sale, the company retains a significant a position of approximately 160,000 net acres in New York of which approximately 110,00 are in the Marcellus and Utica shale fairway in Madison and Chenango counties.
Chenango County’s consultant for the natural gas industry welcomed Monday’s news. “It certainly means that Norse has the cash to continue operations in Chenango County after the SGEIS is finished,” Steven Palmatier said.
Norse’s New York spokesman and Vice President Dennis Holbrook would not reveal the name or names of the individual or corporation making the purchase. He said the transaction is “hopefully the first step for getting value for our New York assets.
“It’s been a very long process of trying to create monetary value for our holdings, what with the state’s lengthy regulatory process. And it’s still challenging for us,” he said.
Norse is selling leases and fee interests totaling approximately 22,700 acres in Central New York, overriding royalty interests of 2.5 percent on 24,300 acres that are held by production in Central New York, 3.75 percent on 84,000 non-producing leased and fee acres location in Central New York and 6.25 percent on 33,000 acres located in Western New York.
Not included in this transaction are the company’s proved reserves, including those in the Herkimer formation, much of which is in Chenango County.
“This transaction represents an important first step in providing liquidity for the company and reflects renewed interest in our New York acreage,” commented Norse CEO Mark Dice. “Norse remains hopeful that the SGEIS approval process will be complete so that development of our significant shale resources can commence in 2012,” he concluded.
Following this sale, the company retains a significant a position of approximately 160,000 net acres in New York of which approximately 110,00 are in the Marcellus and Utica shale fairway in Madison and Chenango counties.
Chenango County’s consultant for the natural gas industry welcomed Monday’s news. “It certainly means that Norse has the cash to continue operations in Chenango County after the SGEIS is finished,” Steven Palmatier said.
Norse’s New York spokesman and Vice President Dennis Holbrook would not reveal the name or names of the individual or corporation making the purchase. He said the transaction is “hopefully the first step for getting value for our New York assets.
“It’s been a very long process of trying to create monetary value for our holdings, what with the state’s lengthy regulatory process. And it’s still challenging for us,” he said.
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