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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Important and breaking news as MDN gets published… The New York Court of Appeals (our state’s highest court) has decided to review a lower court ruling on the Dryden and Middlefield cases in which townships banned shale drilling and fracking for everyone in the town. This is fantastic news for New York landowners. We will have more analysis tomorrow. In the meantime, here’s a statement issued by the Joint Landowners Coalition of New York:
Friday was a picture perfect, late summer/early fall day in Binghamton with temperatures around 75 degrees and blue skies. MDN editor Jim Willis had the pleasure of hanging out for a few hours with pro-drilling “salt of the earth” types of folks at Otsiningo Park in Binghamton, NY. About 250 pro-drillers were on hand with signs lined up along a fence bordering Interstate 81 to welcome President Barack Obama as his motorcade/bus whistled past the park on their way to Binghamton University where the President held a town hall meeting to discuss his education plans (i.e., have everyone else pay for your child’s college education via high taxes).