Norse Energy ASA: Financing Update
16 November 2012
Norse Energy Corp. ASA ("NEC" ticker code OSE - NEC, Oslo, Norway, U.S OTCQX symbol "NSEEY") today provided a finance update.
Norse Energy has over the last several quarters commented on the status of its cash position.The Company currently has cash of ~USD 1.5million, which is sufficient to fund the Company’s obligations only into December 2012.
Consistent with previous reporting, the Company remains concerned about meeting its obligations as they fall due. The Company has been and is continuously working on securing new liquidity; however no conclusion has yet been reached. Consequently, there is a risk that the liquidity situation may not be resolved in time to meet the Company’s debt and other obligations. In order to attract new funding, the Company may require a restructuring of and/or concessions from the holders of outstanding debtinstruments.
A decision on a summary judgment motion brought by Bradford Drilling in its litigation with Norse is anticipated on or about November 27, 2012. Norse has contested Bradford’s interpretation of the Drilling Program Agreement and Bradford’s seeking of up to $7.65 million. While it is premature to speculate on the outcome, the Company has previously advised (See Note 9 “Contingent Liabilities” in the Company’s 3rd Quarter 2012 report) 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.
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. Externally certified contingent resources total 951 MMBOE.
For further information, please contact:
J. Chris Steinhauser, Chief Financial Officer
Direct: +1 713 975 1900 Ext 105
S. Dennis Holbrook, Chief Legal Officer
Direct: +1 716 218 4210