Norse Energy Corp. ASA announced the continued success of its horizontal drilling program in pursuit of the Herkimer trend in central New York State, a field estimated to hold upwards of one half trillion cubic feet (0.5 Tcf = 90 MMBOE) of natural gas. The company has 250 seismically identified locations in the Herkimer formation with a likelihood of substantially more on our ~130,000 acre leasehold position in central New York.
Two of the most recent discoveries, had initial production (IP) rates averaging ~2,500 Mcf/day (445 boe/day). Norse budgeted an average over the first year of 300 Mcf/day (53 boe/day) for the 25 horizontal wells planned to be drilled in 2009.
"Our focus in 2009 continues to be on the Herkimer formation which so far has significantly exceeded expectations with a profitable return on investment even with today's lower gas prices. In addition, we have 1.76 Tcf (314 MMBOE) certified (2C) resource potential from the Marcellus and Utica shale formations," commented Norse Energy CEO Øivind Risberg.
Norse Energy has elected to temporarily postpone its drilling activities until mid-May, as its recent success has outpaced the meter station capacity of the third party pipeline to handle the increased volumes. In the budget scenario, Norse forecasted reaching current production levels later in the year and had therefore scheduled the meter station upgrade for that time. An equipment upgrade now has highest priority and is anticipated to correspond with the timing of renewed drilling activity.
18 wells drilled throughout the central New York area to various formations including the Herkimer, are currently still awaiting pipeline connection. In 2009 to date, 5 horizontal Herkimer wells have been successfully drilled.
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