Norse Stock Options for Key People: Something in the Wind?
Norse Energy, a driller who has gambled on New York State allowing hydraulic fracturing (and has so far lost that gamble), just awarded stock options to a few key employees, including the CEO, CFO, Chief Legal Officer (CLO), and several vice presidents. Typically an organization floats stock options to key people in order to keep them from jumping ship before the company either hits it big or sells out to another company.
Is Norse considering a sale of the entire company? MDN doesn’t have a clue. If they are, it likely would not happen for at least a year or two—long enough for the New York moratorium on fracking to be lifted and for drilling to begin. Once that happens, Norse believes they will be in the pole position—perhaps even first in line—to receive permits to drill in the Marcellus and Utica Shale. And what better time to sell than that?! When the moratorium is lifted, if Norse receives many or even most of the permits to drill, their stock will soar.