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’sobligations 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 theCompany’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 debt instruments.
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.
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