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Norse Increases Capacity on Interstate Pipeline

^{Published on 2010-10-05 16:45:46 - Market Wire}
 

OSLO, Norway--([ BUSINESS WIRE ])--Regulatory News:

"This new pipeline interconnection brings us another step closer to the goal of connecting our 130,000 acres in Central New York, and 4 TCF of contingent resources, to three major interstate pipelines serving premium markets on the east coast of the United States"

Norse Energy Corp. ASA ("NEC" ticker code OSE - NEC, Oslo, Norway, U.S. OTCQX symbol "NSEEY") and its subsidiaries (aNorse Energya or athe Companya) have begun construction on a new pipeline interconnection (tap) arrangement with Dominion Transmission, a subsidiary of Dominion (NYSE:D).

The new tap, which is located near Morrisville, New York, will accommodate deliveries into two of Dominiona™s parallel transmission pipelines. The selected site will also accommodate future interconnection to the Tennessee Gas Pipeline network.

The new Dominion tap provides Norse Energy with additional capacity to support an expected ramp up in production from the Herkimer sandstone. With additional pipeline investments, the upgrade will increase delivery capacity into the Dominion system to approximately 25,000 Mcf/d. With future meter upgrades, the tap is expected to support full field development of gas from the Herkimer, Marcellus and Utica formations. Herkimer drilling is expected to restart in the 4th quarter of 2010 with the aid of recently acquired 3D seismic.

aThis new pipeline interconnection brings us another step closer to the goal of connecting our 130,000 acres in Central New York, and 4 TCF of contingent resources, to three major interstate pipelines serving premium markets on the east coast of the United Statesa, said Mark Dice, CEO of Norse Energy.

Dominion Transmission provides gathering, processing, transportation and storage services, operating in the heart of the Marcellus shale production area.

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