NEC to Sell its Medina Field
Norse Energy has accepted an offer to sell all of its Medina Field assets in New York and Pennsylvania. Dependent on certain conditions, proceeds from the sale is expected to be in the U.S. $60 to U.S. $70 million range, and will result in significant book gain.
The transaction is subject to final Purchase and Sales Agreement and due diligence. Closing of the transaction is anticipated in January 2008, and Norse Energy will consolidate the financial performance of these assets through December 31, 2007.
The contemplated transaction represents proven reserves 1P of 43,7 Bcf and 2P reserves of 53,7 Bcf, and current production from these assets is about 4 200 Mcf (equivalent of about 750 bbl/ day).
Proceeds from the transaction will provide Norse Energy with additional financial flexibility to carry out its strategic long-term U.S. business plan focused on the drilling of deeper higher-impact wells, with more horizontal drilling. Upon completing this sale, Norse Energy retains estimated control over 150,000 acres of land. The company's internal goal is to achieve greater production in 2008 than 2007.
- Norse Set to Sell New York Assets (Jun 20)
- New York Landowners Sue Norse Energy USA Over Leases (May 20)
- Norse Energy Sees Increase in Reserves, Resources (Feb 21)