Wednesday, February 23, 2011

Some Bad News and Some Good News
From Norse Energy

You want the good news, or the...  ohhh, screw it!

The bad news from Norwegian penny stock Norse Energy is this:  The only natural gas driller with still-ongoing development plans in Central New York now suddenly seeks to rearrange very old, very traditional, and very persuasive contractual agreements calling for drillsite host landowners to be rewarded with free gas for their households — so long as the wells produce.

The natural gas explorer, for safety reasons, announced it was going to replace the free gas with trucked in propane — and to help pay for conversions back toward burning that more typical rural heating source.

While this may affect only a dozen or so families in Madison or Chenango counties, it didn't play well from a PR point of view (as can probably be expected, at this juncture).  In fact, media outlets from a number of key area counties — some virtually oblivious to Norse's prior existence in the region — have all suddenly clocked in on this issue within the last 24 hours:

• The sent-from-heaven lead from the Syracuse paper in Onondaga County, NY:  "The phone call came after a week of sub-zero temperatures in January."

• Jim Kenyon on Channel 3, or Channel 5, or Channel Whatever Have You — Syracuse TV in Onondaga County, NY:  Update: Landowners react to natural gas drilling twist.

• And the headline from Oneida County, NY:  Norse Eliminating Free Gas.

In short, this can't be good.

At this writing, I'm not sure what the Almighty Cortland Standard laid down, because they still think they can survive as a print-only operation.  And I still need to hunt around for the OD from Utica, assuming it still exists.  Plus I haven't yet seen the coverage yet from Norwich itself.

But, again, I'm sure it can't be good.

There's no way around it — it's a dark day for the principle of a Deal Being a Goddamn Deal in upstate New York.

However, though, this last bit is interesting:  At the exact same time, coming from Norse — here we have success from a horizontal Herkimer sandstone well.  In fact, after quite a bit of back and forth on this one, they appear to have finally hit bottom.  It's called the Sweezy, J. 2H — just northwest of Sherburne, on County Road 22, Town of Smyrna, Chenango County.  Here's a Google map for the exact location. 

I gather from my source — my main man, Tom, who raises a special kind of cattle in the Greater Earlville area — that the Sweezy was flaring as of last night, Feb. 22 — meaning, yes, successful, and flow being calibrated.

In fact, here is a picture from Tom, who also has video — but who apologizes in advance for the blurriness:

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