Norse Energy

From Wikimarcellus

Lysaker, Norway-based Norse Energy Corp., or its North American subsidiary, Nornew, Inc., with offices in Norwich, New York, northeast of Binghamton, is the most active driller in 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.

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 sandstone.

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 line

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.

The company also plans to drill in central Broome County, where it can ship gas out through the Millennium Pipeline.

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.

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.

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.

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.

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's Q4, 2008 Quarterly Report states that its reserves are estimated at 1.2 bcf per Herkimer well, and that the last five 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 ones to various formations were awaiting pipeline hookup.

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.

• Øivind Risberg is Norse's Chief Executive Officer
• Steven Keyes is its Vice President of Operations.
• David Holbrook is a company spokesman and attorney.

Resources

Nornew Inc. Exploration Company In USA (Wiki), - Wikispaces