Norse Energy
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| - | Lysaker, Norway-based''' Norse Energy Corp.''' (OTCQX: NSEEY), or its North American subsidiary, '''Nornew, Inc.''' (aka Norse Energy USA), with offices in Norwich, [[New York]], northeast of Binghamton, is the most active driller in [[Chenango|Chenango County]], NY. It has drilled several wells in the sandstone formations in both Madison and Chenango counties, especially in the towns of Lebanon, Plymouth and Smyrna. A company spokesman stated that it had purchased most of the available Marcellus and [[Utica shale]] acreage in these two counties or else has it under lease. | + | Lysaker, Norway-based''' Norse Energy Corp.''' (OTCQX: NSEEY), or its North American subsidiary, '''Nornew, Inc.''' (aka Norse Energy USA), with offices in Norwich, [[New York]], northeast of Binghamton, is the most active driller in [[Chenango|Chenango County]], NY. It had drilled dozens of wells in the sandstone formations in both Madison and Chenango counties, especially in the towns of Lebanon, Plymouth and Smyrna. A company spokesman stated that it had purchased most of the available [[Marcellus shale|Marcellus]] and [[Utica shale]] acreage in these two counties or else already had it under lease. As of January, 2010 its leasehold consisted of 180,000 acres. 130,000 of the total acreage had ''stacked potential'' not only for the [[Herkimer formation]], but also for the Marcellus and Utica shales. |
| <center>http://www.sonic.net/~tcopley/img/Norse/norse_map.gif http://www.sonic.net/~tcopley/img/Norse/norse_map_legend.gif<br>N.Y. map courtesy Norse Energy</center> | <center>http://www.sonic.net/~tcopley/img/Norse/norse_map.gif http://www.sonic.net/~tcopley/img/Norse/norse_map_legend.gif<br>N.Y. map courtesy Norse Energy</center> | ||
| - | It was reported in August, 2008 that Norse had drilled eleven wells in the previous twelve months in Chenango County. It has been active there since 1996. Later reports indicated that all eleven were successful in fractured Silurian [[Herkimer formation|Herkimer]] sandstone. | + | ===Latest Company Developments=== |
| - | In Septeber, 2008 the company announced that two of its wells in northern Chenango County have been producing approximately one million cubic feet of natural gas per day each from the Herkimer formation. The well locations have never been disclosed, but most of Norse's Herkimer wells are located on various country roads west of State Route 12 and 12B between South Oxford and Pine Woods in rural Chenango County. There is also a small cluster of wells near Coventryville off State Route 41. Production from these wells flows out through a [[New York State Gas & Electric]] or [[Dominion Transmission Inc.|Dominion]] line | + | At the conclusion of 2009, Norse's production from the Herkimer formation amounted to 12 Mmcf/d. While much of its acreage is prospective for Marcellus and Utica shales too, drilling is on hold for these pending final approval of New York State's ''Supplemental Generic Environmental Impact Statement''. Final approval of it is expected to occur before the end of the second quarter of 2010. Horizontal drilling is permissible in the Herkimer formation so long as the limit of 80,000 gallons per [[Hydro-fracturing|fracture stimulation]] is not exceeded. |
| - | An October, 2008 report indicated Norse owns drilling rights on 130,000 acres in Broome, Chenango and Madison counties in New York. It has drilled two additional wells near Norwich, New York, and built a gathering system there. | + | ===2008 Development Timeline=== |
| - | The company also plans to drill in central Broome County, where it can ship gas out through the [[Millennium Pipeline]]. | + | It was reported in August, 2008 that Norse had drilled eleven wells in the previous twelve months in Chenango County. It had been active there since 1996. Later reports indicated that all eleven had been successful in fractured Silurian [[Herkimer formation|Herkimer]] sandstone. |
| + | ====Many Herkimer wells drilled - Central NY leasehold grows==== | ||
| + | By Septeber, 2008 the company announced that two of its wells in northern Chenango County eacn had been producing approximately 1 Mmcf/d of natgas from the Herkimer formation. Neither well location was disclosed, yet most of Norse's Herkimer wells are located on various country roads west of State Route 12 and 12B between South Oxford and Pine Woods in rural Chenango County. There is also a small cluster of wells near Coventryville off State Route 41. Production from these wells flows out either through a [[New York State Gas & Electric]] or a [[Dominion Transmission Inc.|Dominion]] line. | ||
| - | It has also set up a gas compression station at the northern end of its zone of operations so as to pump gas into a Dominion pipeline running through Madison County. Covering more than fifty miles, Norse's gas transportation and gathering pipelines anchor their acreage and add considerable value to it. | + | An October, 2008 report indicated Norse's leasehold had grown to 130,000 acres in Broome, Chenango and Madison counties in New York. It had drilled two additional wells near Norwich, New York, and also built a gathering system there. |
| + | ====Setting up infrastructure==== | ||
| + | The company planned to drill in central Broome County from where it could ship gas out through the [[Millennium Pipeline]]. | ||
| - | Nornew has a pipeline underway that runs south through Chenango to connect up with the Millennium Pipeline in Broome County. It will be completed in 2010, and travels from Plymouth to Preston, Oxford, Coventry and Afton. Offshoots from this main line connect up with individual wells located along the way. | + | It had also set up a gas compression station at the northern end of its zone of operations so gas could be flowed into a Dominion pipeline running through Madison County. Covering more than fifty miles, Norse's gas transportation and gathering pipelines anchored the company's acreage and added considerable value. |
| - | According to a November, 2008 report, Norse's total [[Marcellus shale]] leasehold is roughly 175,000 acres. It has applied for several permits for Marcellus wells in the same general area as mentioned above for the Herkimer wells--off State Route 12 between South Oxford and Smyrna with another small cluster of permits near Coventryville off Route 41. | + | Nornew had a pipeline underway that ran south through Chenango Co. to connect up with the Millennium Pipeline in Broome County. It was to be completed by 2010, and it traveled from Plymouth to Preston, Oxford, Coventry and Afton. Offshoots from this main line were to connect up with individual well locations along the way. |
| + | ====Acreage grows - Marcellus shale permits==== | ||
| + | According to a November, 2008 report, Norse's total leasehold had swollen to roughly 175,000 acres. It had applied for several permits for Marcellus shale wells in the same general area as mentioned above for its Herkimer wells--off State Route 12 between South Oxford and Smyrna. There is also another small cluster of permits near Coventryville off Route 41. | ||
| + | ====Drilling results==== | ||
| + | In December, 2008 the company stated that it had drilled 33 wells during 2008 in New York State. | ||
| - | In December, 2008 the company stated that it had drilled 33 wells during 2008 in New York State and plans 25 more wells into the [[Herkimer formation]] in 2009. The company continues to drill numerous wells in Chenango among other counties in the State. | + | The company's Q4, 2008 ''Quarterly Report'' stated that its reserves are estimated at 1.2 Bcf of natgas per Herkimer well, and that the last five [[Horizontal drilling|horizontal]] wells drilled had averaged 1 Mmcf/d. |
| + | ====Acreage prospective for Marcellus and Utica shales==== | ||
| + | The lion's share of Norse's 175,000 acre New York leasehold was prospective for Marcellus shale, and the evaluation of its potential production had led to a large increase in the company's contingent reserves. Some of the central New York leases were also prospective for [[Utica shale]]. That also had a positive impact upon contingent reserves. | ||
| + | ====Shoots seismic and looks for a strategic partner==== | ||
| + | The company had been very active researching prospective Marcellus and Utica locations as well as in the Herkimer. In the process, its exploration department shot over 500 miles of 2D [[seismic data]] during 2008. The company had retained an investment bank to assist it in locating a strategic partner to help fully develop its shale potential in New York. | ||
| + | ===2009 Development Timeline=== | ||
| + | Norse/Nornew planned 25 more New York Herkimer wells in 2009. The company continued to drill numerous wells in Chenango Co. along with those in other counties. | ||
| <center>http://www.sonic.net/~tcopley/img/Norse/norse_rig.gif<br>Norse Energy U.S.A. Herkimer Formation Drilling Rig In Madison Co., NY<br>Courtesy of [http://www.norseenergy.com Norse Energy]</center> | <center>http://www.sonic.net/~tcopley/img/Norse/norse_rig.gif<br>Norse Energy U.S.A. Herkimer Formation Drilling Rig In Madison Co., NY<br>Courtesy of [http://www.norseenergy.com Norse Energy]</center> | ||
| - | + | ====Lebanon Rig Fire==== | |
| - | Nornew was in the news in March, 2009 with a gas rig fire in southern Madison County near the town of Lebanon on the border with Chenango County. According to the same report, another well fire had occurred a couple of months earlier about two miles from this location. It was mentioned that Nornew has around 100 wells in the area of Lebanon and the neighboring town of Smyrna. This fire occurred in a very isolated area, and no reason for its starting was given. | + | The company was in the news in March, 2009 when there was a gas rig fire in southern Madison County near the town of Lebanon on the border with Chenango County. According to the report, another well fire had occurred a couple of months earlier two miles from this location. It was mentioned that Nornew had around 100 wells in the area of Lebanon and the neighboring town of Smyrna. This fire occurred in a very isolated area, and the cause of the fire was unknown. |
| - | + | ====More drilling results==== | |
| - | The company's Q4, 2008 ''Quarterly Report'' states that its reserves are estimated at 1.2 bcf per Herkimer well, and that the last five [[Horizontal drilling|horizontal]] wells drilled have averaged 1 mcf/d. | + | An April, 2009 update mentioned that Nornew had identified a minimum of 250 prospective locations in the Herkimer formation on its 130,000 acres in central New York. The report also mentioned that the company's two most recent wells had production rates of 2.5 Mmcf/d. As of late April, five successful horizontal Herkimer wells had been drilled in 2009, and 18 previously drilled to various formations were awaiting pipeline hookup. |
| - | + | ===2010 Development Timeline=== | |
| - | An April, 2009 update mentioned that Nornew had identified a minimum of 250 prospective locations in the Herkimer formation on its 130,000 acres in central New York. The report also mentioned that the company's two most recent wells had production rates of 2.5 MMcf/d. As of late April, five successful horizontal Herkimer wells had been drilled in 2009, and 18 previously drilled ones to various formations were awaiting pipeline hookup. | + | A January, 2010 company update noted that the its leasehold had grown to 180,000 acres and 130,000 of them had "stacked potential". By ''stacked'' the company meant that this acreage also had potential for [[Marcellus shale|Marcellus]] and [[Utica shale]] development as well as Herkimer. The company noted that horizontal shale wells were presently prohibited in New York State pending final approval of the State's ''Supplemental Generic Impact Statement'' that was expected by the second quarter of 2010. At year end 2009, Norse was producing 12 Mmcf/d primarily from the [[Herkimer formation]]. Horizontal drilling had been permitted in that formation but with a limit of 80,000 gallons per [[Hydro-fracturing|fracture stimulation]]. |
| - | + | ===Spotlight Issues=== | |
| - | According to Norse's '''2008 Annual Report''' virtually all of its 175,000 New York leasehold is prospective for Marcellus shale, and the evaluation of its potential production from this formation has led to a large increase in the company's contingent reserves. Some of the central New York leases are also prospective for [[Utica shale]]. That too has had a positive overall effect on contingent reserves. The company has been very active researching prospective Marcellus and Utica locations as well as in the Herkimer. In the process, its exploration department shot over 500 miles of 2D [[seismic data]] during 2008. The company has retained an investment bank to assist it in locating a strategic partner to help fully develop its shale potential in New York. '''''Update:''''' A January, 2010 company update noted that the its leasehold had grown to 180,000 acres and 130,000 of them had "stacked potential". By ''stacked'' the company indicated said acreage also had potential for [[Marcellus shale|Marcellus]] and [[Utica shale]] development as well as Herkimer. The company noted that horizontal shale wells were presently prohibited in New York State pending final approval of the State's Supplemental Generic Impact Statement that was expected by the second quarter of 2010. At year end 2009, Norse was producing 12 Mmcf/d primarily from the [[Herkimer formation]]. Horizontal drilling had been permitted in that formation but with a limit of 80,000 gallons per [[Hydro-fracturing|fracture stimulation]]. | + | * Assuming New York State's ''Supplemental Generic Impact Statement'' blesses horizontal Marcellus and Utica shale drilling and [[New York Department of Environmental Conservation|DEC]] issues permits, Norse could be one of the biggest beneficiaries with its 130,000 acres prospective for both formations. |
| - | + | * Norse has been active in central New York since 1996. The company has had time to establish its gathering lines and compression plants. It is well positioned to take advantage of new production coming from horizontally drilling these presently off-limit shale formations. | |
| + | * Higher natgas production from Norse's newer wells demonstrates a ''learning curve effect'' and that the company's drilling efforts are gaining in productivity with experience. | ||
| + | ===Executive Contacts=== | ||
| * Øivind Risberg is Norse's Chief Executive Officer. | * Øivind Risberg is Norse's Chief Executive Officer. | ||
| * Steven Keyes is its Vice President of Norse Operations. | * Steven Keyes is its Vice President of Norse Operations. | ||
| Line 34: | Line 50: | ||
| * Mark Dice is President and COO of Norse Energy USA. | * Mark Dice is President and COO of Norse Energy USA. | ||
| * Richard Broughrum is CFO of Norse Energy USA. | * Richard Broughrum is CFO of Norse Energy USA. | ||
| - | |||
| === Resources === | === Resources === | ||
| - | |||
| - | |||
| '''Nornew Inc. Exploration Company In USA (Wiki)''', [http://nornew.wikispaces.com/ - '''Wikispaces'''] | '''Nornew Inc. Exploration Company In USA (Wiki)''', [http://nornew.wikispaces.com/ - '''Wikispaces'''] | ||
Revision as of 03:37, 1 February 2010
Lysaker, Norway-based Norse Energy Corp. (OTCQX: NSEEY), or its North American subsidiary, Nornew, Inc. (aka Norse Energy USA), with offices in Norwich, New York, northeast of Binghamton, is the most active driller in Chenango County, NY. It had drilled dozens of wells in the sandstone formations in both Madison and Chenango counties, especially in the towns of Lebanon, Plymouth and Smyrna. A company spokesman stated that it had purchased most of the available Marcellus and Utica shale acreage in these two counties or else already had it under lease. As of January, 2010 its leasehold consisted of 180,000 acres. 130,000 of the total acreage had stacked potential not only for the Herkimer formation, but also for the Marcellus and Utica shales.
N.Y. map courtesy Norse Energy
Contents |
Latest Company Developments
At the conclusion of 2009, Norse's production from the Herkimer formation amounted to 12 Mmcf/d. While much of its acreage is prospective for Marcellus and Utica shales too, drilling is on hold for these pending final approval of New York State's Supplemental Generic Environmental Impact Statement. Final approval of it is expected to occur before the end of the second quarter of 2010. Horizontal drilling is permissible in the Herkimer formation so long as the limit of 80,000 gallons per fracture stimulation is not exceeded.
2008 Development Timeline
It was reported in August, 2008 that Norse had drilled eleven wells in the previous twelve months in Chenango County. It had been active there since 1996. Later reports indicated that all eleven had been successful in fractured Silurian Herkimer sandstone.
Many Herkimer wells drilled - Central NY leasehold grows
By Septeber, 2008 the company announced that two of its wells in northern Chenango County eacn had been producing approximately 1 Mmcf/d of natgas from the Herkimer formation. Neither well location was disclosed, yet most of Norse's Herkimer wells are located on various country roads west of State Route 12 and 12B between South Oxford and Pine Woods in rural Chenango County. There is also a small cluster of wells near Coventryville off State Route 41. Production from these wells flows out either through a New York State Gas & Electric or a Dominion line.
An October, 2008 report indicated Norse's leasehold had grown to 130,000 acres in Broome, Chenango and Madison counties in New York. It had drilled two additional wells near Norwich, New York, and also built a gathering system there.
Setting up infrastructure
The company planned to drill in central Broome County from where it could ship gas out through the Millennium Pipeline.
It had also set up a gas compression station at the northern end of its zone of operations so gas could be flowed into a Dominion pipeline running through Madison County. Covering more than fifty miles, Norse's gas transportation and gathering pipelines anchored the company's acreage and added considerable value.
Nornew had a pipeline underway that ran south through Chenango Co. to connect up with the Millennium Pipeline in Broome County. It was to be completed by 2010, and it traveled from Plymouth to Preston, Oxford, Coventry and Afton. Offshoots from this main line were to connect up with individual well locations along the way.
Acreage grows - Marcellus shale permits
According to a November, 2008 report, Norse's total leasehold had swollen to roughly 175,000 acres. It had applied for several permits for Marcellus shale wells in the same general area as mentioned above for its Herkimer wells--off State Route 12 between South Oxford and Smyrna. There is also another small cluster of permits near Coventryville off Route 41.
Drilling results
In December, 2008 the company stated that it had drilled 33 wells during 2008 in New York State.
The company's Q4, 2008 Quarterly Report stated that its reserves are estimated at 1.2 Bcf of natgas per Herkimer well, and that the last five horizontal wells drilled had averaged 1 Mmcf/d.
Acreage prospective for Marcellus and Utica shales
The lion's share of Norse's 175,000 acre New York leasehold was prospective for Marcellus shale, and the evaluation of its potential production had led to a large increase in the company's contingent reserves. Some of the central New York leases were also prospective for Utica shale. That also had a positive impact upon contingent reserves.
Shoots seismic and looks for a strategic partner
The company had been very active researching prospective Marcellus and Utica locations as well as in the Herkimer. In the process, its exploration department shot over 500 miles of 2D seismic data during 2008. The company had retained an investment bank to assist it in locating a strategic partner to help fully develop its shale potential in New York.
2009 Development Timeline
Norse/Nornew planned 25 more New York Herkimer wells in 2009. The company continued to drill numerous wells in Chenango Co. along with those in other counties.
Lebanon Rig Fire
The company was in the news in March, 2009 when there was a gas rig fire in southern Madison County near the town of Lebanon on the border with Chenango County. According to the report, another well fire had occurred a couple of months earlier two miles from this location. It was mentioned that Nornew had around 100 wells in the area of Lebanon and the neighboring town of Smyrna. This fire occurred in a very isolated area, and the cause of the fire was unknown.
More drilling results
An April, 2009 update mentioned that Nornew had identified a minimum of 250 prospective locations in the Herkimer formation on its 130,000 acres in central New York. The report also mentioned that the company's two most recent wells had production rates of 2.5 Mmcf/d. As of late April, five successful horizontal Herkimer wells had been drilled in 2009, and 18 previously drilled to various formations were awaiting pipeline hookup.
2010 Development Timeline
A January, 2010 company update noted that the its leasehold had grown to 180,000 acres and 130,000 of them had "stacked potential". By stacked the company meant that this acreage also had potential for Marcellus and Utica shale development as well as Herkimer. The company noted that horizontal shale wells were presently prohibited in New York State pending final approval of the State's Supplemental Generic Impact Statement that was expected by the second quarter of 2010. At year end 2009, Norse was producing 12 Mmcf/d primarily from the Herkimer formation. Horizontal drilling had been permitted in that formation but with a limit of 80,000 gallons per fracture stimulation.
Spotlight Issues
- Assuming New York State's Supplemental Generic Impact Statement blesses horizontal Marcellus and Utica shale drilling and DEC issues permits, Norse could be one of the biggest beneficiaries with its 130,000 acres prospective for both formations.
- Norse has been active in central New York since 1996. The company has had time to establish its gathering lines and compression plants. It is well positioned to take advantage of new production coming from horizontally drilling these presently off-limit shale formations.
- Higher natgas production from Norse's newer wells demonstrates a learning curve effect and that the company's drilling efforts are gaining in productivity with experience.
Executive Contacts
- Øivind Risberg is Norse's Chief Executive Officer.
- Steven Keyes is its Vice President of Norse Operations.
- David Holbrook is a company spokesman and attorney.
- Mark Dice is President and COO of Norse Energy USA.
- Richard Broughrum is CFO of Norse Energy USA.
Resources
Nornew Inc. Exploration Company In USA (Wiki), - Wikispaces
