Norse Energy Corp. ASA (“NEC” ticker Oslo Stock Exchange, Norway; “NSEEY” ticker U.S. OTC) announces continued progress and capital efficiencies in its 2010/2011 Herkimer Drilling Program and announces an update to the Utica Test Program.
The Company reports successful completion of the first well in its Herkimer Drilling Program, with the third well in the program nearing completion. The second well encountered drilling difficulties immediately above the Herkimer target. Options for completing this well are being evaluated. The vertical portion of a fourth well has been completed and a fifth well is scheduled to spud before the New Year. Drilling to date has been accomplished using one Speedstar 185 drilling rig assisted by the previously announced addition of a vertical drilling package. The two rig, fit for purpose approach, is demonstrating, as expected, drill time and cost reduction. In addition, Norse has already built location for the fifth well, with five more locations scheduled for immediate construction. Production results will be released shortly after the end of the quarter.
To further enhance the pace of Herkimer development, the Company has acquired an option to obtain the services of a second Speedstar 185 drilling rig. This rig is expected to begin operations in the spring of 2011.
Norse Energy has also completed construction of one Utica drilling location. The Company expects to initiate drilling of a four-phase test of the Utica formation as soon as the New York Department of Environmental Conservation (the “DEC”) issues the Supplemental Generic Environmental Impact Statement (“SGEIS”); expected to be this summer.
“Our Herkimer Drilling Program is making good progress as we seek to take advantage of capital efficiencies,” says Mark Dice, Norse Energy CEO. “We anticipate accelerating the pace of development in 2011, once we emerge from today’s challenging winter conditions,” commented Dice.
John Childers, Executive Vice President of Exploration and Production, adds “We have been extremely pleased with the timeline for issuance of drilling permits by the DEC, the pace of construction of our locations, and the increasing efficiency our drilling operations as we ramped up the pace of drilling.”
Norse Energy has total contingent resources of ~4 TCF (~713 MMBOE) at the end of 2009. The Company has a significant land position of 180,000 net acres in New York State. 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.
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