This just in from Brian Brock –
Norse Energy’s ex CEO has evidently pretended to buy Norse’s remaining producing assets – so that Norse can forestall bankruptcy.
“These 22,000 ac being sold are held in production by Herkimer and other sandstone wells could be all of Norse’s producing properties because I’d guess that they have less than 100 producing wells. They already sold the pipeline and marketing service. Now Norse is also selling ROW for future pipelines and their gathering system. Wonder what they have left?”
Norse Energy is unraveling faster that I can type:
Note that all of this (including pipeline/marketing) are/were being sold to former Norse executive board member – so not an “arm’s length” deal. More of an insider toilet flush to evade bankruptcy. Norse is holding onto 1/3 share of rights to Utica Shale under these acres, but the Utica is like to be may be super-matured – with little gas based on the geology and test wells:
“Norse Energy Corp ASA: Norse Announces USD 37 Million Sale of Assets
March 15, 2012
LYSAKER, Norway–(BUSINESS WIRE)–Regulatory News:
Norse Energy Corp. ASA (“NEC” ticker Oslo Stock Exchange, Norway; “NSEEY” ticker U.S. OTC) announces that it has entered into a definitive agreement to sell its operated production, ~22,000 held by production (“HBP”) acres (in which Norse retains a 37.5% working interest in the deep Utica formation), gathering system, and pipeline rights of way in Central New York. The buyer will also receive a three year warrant to purchase 81 million shares at a strike price of NOK 0.40 at the closing date. Total cash consideration to Norse is USD 37 million.
The buyer is EmKey Resources, LLC, a privately owned company (probably formed for the purpose of buying these assets so that Norse could pay down its debt)led and partially owned by Øivind Risberg, a current Norse board member and former Norse Energy CEO
Following this sale, the Company will own or lease approximately 131,000 net acres in New York State of which ~33,000 lies in the liquids rich shale fairways of Western New York, and the remaining ~98,000 net acres lies in the Marcellus and Utica natural gas fairways in Central New York.”
Where heretofore, Norse Energy has been unable to find enough gas to fill a toy balloon. . . .