Norse Energy Corp ASA, Oslo, Norway, (OTCBB: NSEEF; Oslo: NEC) reports it is abandoning its plans to acquire oil and gas assets in the Barnett shale in North Texas from Strategic Petroleum Investment Consultants Enterprise Inc., Paris Oil & Gas Corp. and Eleon Operators LLC for US$70 million in cash and stock following a notice from the sellers that they no longer intend to proceed with the transaction.
The assets represented virtually all of the sellers’ holdings and included approximately 19,700 acres of oil and gas shale in Montague and Clay counties. Some 4,760 acres are in the Midway project and 13,600 acres are in the Bellevue area. Another 4.1% working interest is in 32,500 gross acres in Montague and Wise counties operated by EOG Resources Inc., Houston, (NYSE: EOG) and EnCana Corp., Calgary (NSYE: ECA).
Current net production is approximately 600 barrels of oil equivalent per day. Proved plus probable reserves are 3.7 million barrels of oil equivalent, with 4.4 million barrels equivalent proved probable and possible. Contingent resources are estimated at 48.6 million barrels of oil equivalent.
Carnegie ASA was financial advisor to Norse Energy. Norse Energy operates in the Marcellus and Utica shales and in Brazil.
To see a presentation on the proposed acquisition, click here: Norse Acquisition of Barnett Combo Play
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