Norse Energy Bets Big on New York’s Utica & Marcellus Shale

Norse Energy, an Oslo (Norway)-based gas drilling company has just announced they are “betting the farm” on drilling in New York State’s Marcellus and Utica Shales. They’ve even decided to suspend other types of gas drilling favor of New York’s shale gas. Recently, Norse became the first company to file a permit with the state DEC to drill in the Utica Shale once permits start to be issued (see this MDN story).

From Norse’s press release issued Friday:

Norse Energy Corp. ASA announces a reallocation of corporate resources to focus on Marcellus and Utica Shale development.

In anticipation that rules allowing the use of high volume hydraulic fracturing to develop natural gas resources in the state of New York will soon be in place, Norse Energy has elected to immediately suspend Herkimer drilling. This will preserve cash for potentially more profitable Marcellus and Utica Shale planning, permitting and development.

Subsequent to release of the draft SGEIS on July 8, 2011, Norse Energy filed its first application for a permit to drill a shale well in New York State using high volume hydraulic fracturing. The permit is expected to be issued when final SGEIS regulations are in place. This strategy transition is expected to facilitate rapid and efficient development of the Company’s Marcellus and Utica Shale resources.

“With the SGEIS public comment period expected to begin soon, now is the right time to re-focus the company on the development of shale resources across our extensive acreage position in New York State,” said Mark Dice, Chief Executive Officer.

Norse Energy has total contingent resources of 3.9 TCF (~700 MMBOE) at the end of 2010. The Company has a significant land position of 180,000 net acres in New York State.*

*Norse Energy Press Release (Aug 5, 2011) – Norse Energy Announces Transition to Shale Development in New York