Norse Energy 2Q13: Concerned About Remaining ‘a Going Concern’
MDN told you a few days ago about the sad state of affairs at Norse Energy (see Norse Can’t Dump NY Leases at Auction, Creditors Get Ready to Sue). The company released their second quarter update today (full copy embedded below). The update is based on the assumption the company will remain “a going concern.” They state that if they can’t sell their 130,000 acres of New York leases at a decent price, they’ll have to turn the lights off and walk away. The company is currently under bankruptcy protection and has been ordered to sell their last remaining asset–the leases.
One item from the 2Q13 update that caught our attention is that a group of approximately 60 landowners with a collective 6,000 acres are suing Norse to end their leases. Norse had invoked force majeure on the leases–a legal maneuver that states, roughly, “due to a circumstance beyond our control we’re extending the original lease term.” Of course the unforeseen circumstance is the now 5+ year moratorium on drilling in New York. If Norse starts losing already-signed leases left and right, they’ll have no assets left to sell at auction, so they are vigorously fighting the action by the landowners…
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Somehow the following news (now a few weeks old) slipped by our usually-good radar. Antero Resources has taken the top spot away from Gulfport Energy as having the most productive Utica Shale well in Ohio. Gulfport had what was dubbed their “alpha dog” well, the Wagner 1-H well producing 14 million cubic feet of natural gas per day (Mmcf/d). Then came Gulfport’s Shugert 1-1H, which MDN dubbed the “King of Utica Shale wells” producing a whopping 20 Mmcf/d. After that was the Shugert 1-12H well, sister well to the 1-1H. We called that one “the Emperor well” producing 28.5 Mmcf/d (see 
Time for Shell to get serious about whether or not they plan to build a $2 billion ethane cracker plant in Monaca, PA. Shell announced yesterday they will have something akin to a pipeline open season, a period of time when drillers can bid on capacity to send the plant (should it be built) their locally-produced ethane supplies. The bidding period will run from August 27 through October 4 and will give Shell a good idea of just how much ethane will be available for them to “crack” at the plant.
Investor’s website Market Realist ran a 7-part series on the Utica Shale yesterday–really good stuff. As part of that series they list the biggest drillers/leaseholders in the Ohio Utica Shale. It’s a very useful rundown and update on the latest positions held by the major players of the Utica. We’ve pulled and condensed from their article to give you the latest rundown on who’s who in the Ohio Utica Shale…
A landman for Penn-Star Energy of Butler, PA, working to secure leases for Range Resources, is accused of a huge scam.
MDN attended and reported on the grand opening of a new CNG fueling station in Susquehanna County, PA last week (see