LYSAKER, Norway--(BUSINESS WIRE)--Regulatory News:
Norse Energy Corp. ASA ("NEC ASA" or “NEC” ticker Oslo Stock Exchange, Norway) announces that New York State Department of Environmental Conservation (DEC) has been advised by the New York State Department of Health (DOH) that they would need “a few more weeks” to complete their health review of the proposed Supplemental Generic Environmental Impact Statement (SGEIS). Issuance of the final SGEIS is contingent upon a determination that the SGEIS has adequately addressed health concerns.
“This does not mean that the issuance of High Volume Hydraulic Fracturing (HVHF) would be delayed”, commented Commissioner Martens. “The DEC can accept and process high volume hydraulic fracturing permit applications 10 days after issuance of the SGEIS”, Martens continued.
NEC ASA previously communicated that its US subsidiary, Norse Energy Corp. USA (Norse Energy) filed in December 2012 a voluntary petition for Chapter 11 protection and reorganization under the United States Bankruptcy Code. Since then, Norse Energy has been seeking Debtor in Possession (DIP) financing to fund the US subsidiary's operations during the Chapter 11 process. Vanadium Capital L.P. recently signed a term sheet to provide such funding, which it has now withdrawn. Several other parties have expressed interest in providing "DIP" financing and we continue to work toward terms acceptable to Norse and the court. However, there remains a significant risk that no agreement will be reached.
Discussions are also continuing with bondholders and other stakeholders concerning funding of NEC ASA.
Norse Energy owns or leases approximately 130,000 net acres in New York State, of which ~33,000 lie in the liquids rich shale fairways of Western New York, and the remaining ~97,000 net acres lie in the Marcellus and Utica natural gas fairways of Central New York. The Company's certified 2C Contingent Resources are now 951 net MMBOE or 5.4 TCFGE.
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