Norse Energy Announces Court Ruling in Bradford Litigation
28 November 2012
Norse Energy Corp. ASA (“NEC” ticker Oslo Stock Exchange, Norway; “NSEEY” ticker U.S. OTC) announces a court ruling in connection with its dispute with Bradford Drilling Associates LP (“Bradford”).
The New York court has denied Bradford’s motion for summary judgment and has directed the parties to establish an escrow account into which Norse will be required to deposit USD 7.65 Million. Bradford asserted this is the amount of unspent funds it invested pursuant to a 2010 Drilling Program Agreement. All escrowed deposits will be disbursed as directed by the court. The case is expected to go to trial during the second half of 2013. The Company previously advised that approximately USD 3.3 Million remained to be allocated on Bradford's behalf to existing program expenses and future expenses when the program resumes (See “Note 9. Contingent liabilities” in the Company's Third Quarter Report 2012). The Company has contested and will continue to contest Bradford's interpretation of the Drilling Program Agreement.
This court ruling adds uncertainty about the Company’s ability to meet its debt and other obligations as they fall due. The Company has been and is continuously working to secure new liquidity; however nothing has yet materialized.
The Company has a significant land position of 130,000 net acres in New York State with certified 2C contingent resources of ~951 MMBOE as of 30 June 2012.
For further information, please contact:
Chris Steinhauser, Chief Financial Officer
Office: +1 713 975 1900
S. Dennis Holbrook, Executive Vice President
Office: +1 716 568 2048