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Gas Driller’s U.S. Offshoot Files For Bankruptcy

Posted By Jon Campbell On December 7, 2012 @ 12:34 pm In Other | Comments Disabled

A company hoping to tap into New York’s portion of the gas-rich Marcellus Shale has filed for bankruptcy.

Norse Energy’s U.S.-based subsidiary announced Thursday that it has filed for a Chapter 11 reorganization. The company has been very involved in the battle of high-volume hydrofracking in New York, and in many ways hitched its future on it.

Norse is also dealing with a $17.7 million lawsuit [1] filed by Bradford Drilling over a separate drilling partnership in the Herkimer formation. A judge last month ordered the company to deposit $7.65 million in an escrow account while the suit continues, a decision Norse said added “uncertainty about the Company’s ability to meet its debt and other obligations as they fall due.”

Norse currently has the gas rights to about 130,000 acres of land in the state’s portion of the Marcellus, and has filed numerous permit requests with the Department of Environmental Conservation. Those requests, however, are on hold as the state continues its review of large-scale hydrofracking.

This week, DEC Commissioner Joseph Martens said his agency is hopeful [2] it can come to a decision on whether to greenlight high-volume hydrofracking by the end of February. If a set of proposed regulations aren’t finalized by then, the agency would have to restart its rule-making process.

Norse Energy is based in Oslo, Norway. Its U.S. operations were based in Buffalo, but were later moved to Houston.


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URL to article: http://statepolitics.lohudblogs.com/2012/12/07/gas-drillers-ny-offshoot-files-for-bankruptcy/

URLs in this post:

[1] also dealing with a $17.7 million lawsuit: http://www.businesswire.com/news/home/20111211005068/en/Norse-Energy-Corp-ASA-Norse-Announces-Lawsuit

[2] said his agency is hopeful: http://polhudson.lohudblogs.com/2012/12/05/dec-chief-hopeful-a-fracking-decision-will-come-before-march/