The first quarter 2013 report for Norse Energy, an exploration and production company with 130,000 acres of oil and gas leases in New York State. Because of NY's now nearly 5-year moratorium on fracking and horizontal drilling, Norse is in bankruptcy and very close to closing their doors. Can you say "I Love NY?" How about "NY is Open for Business?" Norse may not concur.
This 2002 annual report from Devon Energy Corporation provides an overview of the company's strong financial and operational performance in 2002, highlights of integrating recent acquisitions, and positioning for continued future growth. Key points include record total production of 188 million barrels of oil equivalent, replacing 278% of production through drilling at a cost of $7.18 per barrel, nearly doubling in size through acquisitions of Mitchell Energy and Anderson Exploration, and establishing a firm financial and operational foundation for future growth through debt reduction and focused investment.
BP today reported its quarterly results for the second quarter of 2012. Underlying replacement cost profit for the quarter, adjusted for non-operating items and fair value accounting effects, was $3.7 billion, compared with $5.7 billion for the same period in 2011 and $4.8 billion for the first quarter of 2012.
Compared to the previous quarter, the underlying results were depressed by weaker oil and US gas prices together with reductions in output due to extensive planned maintenance, particularly affecting high-margin production from the Gulf of Mexico, and lower net income from TNK-BP. This was partly offset by a beneficial consolidation adjustment to unrealised profit in inventory.
BP’s share of net income from TNK-BP was $700 million lower than the first quarter, driven by the impact of the rapid fall in oil prices amplified by the lag in Russian oil export duty, which is based on earlier higher oil prices. At current Urals prices, net income in the third quarter is expected to show some positive reversal of the duty lag.
Bob Dudley, BP group chief executive, said: “We recognise this was a weak earnings quarter, driven by a combination of factors affecting both the sector and BP specifically.
“The effects of price movements have impacted our earnings in the quarter. Our extensive turnaround and maintenance programme, which will continue into the third quarter, is also affecting some aspects of our near term results. All of this will take time, but it is important investment that will enhance safety and reliability for the long term. As we deliver this major transformation, we are also committed to generating sustainable efficiencies in our operations.
“Rebuilding trust with our shareholders and other stakeholders is vitally important. We are making progress against the critical strategic and operational targets we have set ourselves and are confident that this will deliver long-term, sustainable value.”
Non-operating items included a number of significant impairments, totalling $4.8 billion on a pre-tax basis, relating primarily to reductions in value of US shale gas assets, certain refineries in the company’s portfolio and the decision to suspend the Liberty project in Alaska.
Operating cash flow for the second quarter, after $1.7 billion of post-tax Gulf of Mexico expenditure, was $4.4 billion, compared to $3.4 billion in the previous quarter. Gearing was 21.9%, reflecting the impact on equity due to the impairments. BP announced a dividend for the quarter of 8c per ordinary share.
BP’s production of oil and gas, excluding TNK-BP, averaged 2.275 million barrels of oil equivalent per day (mmboed) in the second quarter, compared to 2.457 mmboed for the same period last year. Reported production in the third quarter is expected to be slightly lower, as the seasonal turnaround programme continues, before increasing in the fourth quarter.
The document provides a summary of Lundin Gold's activities and achievements in 2018 related to developing its Fruta del Norte gold project in Ecuador. Key highlights include:
- Underground development and construction activities progressed on or ahead of schedule.
- The project received $400 million in equity financing and $350 million in project debt financing.
- Exploration drilling intersected an epithermal system but no significant gold mineralization.
- Environmental, health and safety programs remained a focus, with no major issues recorded.
NorthIsle is a mineral resource company focused on developing its North Island copper-gold porphyry project on northern Vancouver Island, British Columbia. A 2021 preliminary economic assessment showed robust economics for the project, including an after-tax NPV of C$1.1 billion and 19% IRR over a 22-year mine life producing on average 96 million pounds of copper and 100,000 ounces of gold annually. The project benefits from existing infrastructure and has potential for expansion through further exploration of the 50km mineralized trend. NorthIsle is led by an experienced team with a track record of successful mine development and aims to become a leading sustainable mineral resource company.
The document provides an analysis of Devon Energy Corporation (DVN) and recommends not buying the stock. It summarizes DVN's business operations, financial performance, investments and assets. Recent drops in oil prices present risks to DVN since it has shifted its focus to oil exploration and production. An OPEC decision not to cut oil production could further lower prices, negatively impacting DVN's revenues and profits. A discounted cash flow valuation of DVN supports not buying the stock at this time given the risks from lower oil prices.
This 3 sentence summary provides the high level information about the 2007 Annual Report of Newmont Mining Corporation:
The report discusses Newmont's financial and operating results for 2007, noting that production was 5.3 million ounces of gold in line with guidance. It describes strategic actions taken in 2007 to focus on gold, eliminate hedges to take advantage of higher gold prices, invest over $1 billion in projects, and acquire Miramar Mining to gain control of the Hope Bay gold deposit in Canada. The letter to shareholders expresses optimism about Newmont's growth opportunities in 2008 from projects in Peru, Australia, Ghana and Hope Bay and its commitment to sustainability and communities.
This document is Devon Energy Corporation's 1998 annual report. It summarizes Devon acquiring Northstar Energy Corporation through a merger, creating a larger company with increased proved reserves and production. The merger brought Devon oil and gas properties and management experience in Canada, where opportunities were emerging due to improving natural gas pipeline infrastructure and access to US markets, opening previously unexplored regions. However, low oil prices in 1998 reduced Devon's revenues and led to a net loss for the year.
Forum Energy Resources is an oil and gas company focused on natural resource acquisition and exploration in the Philippines. It expects to begin gas production from its Libertad field and coal production from its South Cebu contracts in 2006. Further production could be added through a potential acquisition of Basic Petroleum & Minerals Inc. and its stakes in existing oil fields. Forum has numerous oil and gas prospects through its exploration contracts in the Philippines, including the large Sampaguita prospect. Valuations estimate the company's value could range from £18-21.25 million currently to £234 million - £1.09 billion factoring in its exploration upside potential.
This 2002 annual report from Devon Energy Corporation provides an overview of the company's strong financial and operational performance in 2002, highlights of integrating recent acquisitions, and positioning for continued future growth. Key points include record total production of 188 million barrels of oil equivalent, replacing 278% of production through drilling at a cost of $7.18 per barrel, nearly doubling in size through acquisitions of Mitchell Energy and Anderson Exploration, and establishing a firm financial and operational foundation for future growth through debt reduction and focused investment.
BP today reported its quarterly results for the second quarter of 2012. Underlying replacement cost profit for the quarter, adjusted for non-operating items and fair value accounting effects, was $3.7 billion, compared with $5.7 billion for the same period in 2011 and $4.8 billion for the first quarter of 2012.
Compared to the previous quarter, the underlying results were depressed by weaker oil and US gas prices together with reductions in output due to extensive planned maintenance, particularly affecting high-margin production from the Gulf of Mexico, and lower net income from TNK-BP. This was partly offset by a beneficial consolidation adjustment to unrealised profit in inventory.
BP’s share of net income from TNK-BP was $700 million lower than the first quarter, driven by the impact of the rapid fall in oil prices amplified by the lag in Russian oil export duty, which is based on earlier higher oil prices. At current Urals prices, net income in the third quarter is expected to show some positive reversal of the duty lag.
Bob Dudley, BP group chief executive, said: “We recognise this was a weak earnings quarter, driven by a combination of factors affecting both the sector and BP specifically.
“The effects of price movements have impacted our earnings in the quarter. Our extensive turnaround and maintenance programme, which will continue into the third quarter, is also affecting some aspects of our near term results. All of this will take time, but it is important investment that will enhance safety and reliability for the long term. As we deliver this major transformation, we are also committed to generating sustainable efficiencies in our operations.
“Rebuilding trust with our shareholders and other stakeholders is vitally important. We are making progress against the critical strategic and operational targets we have set ourselves and are confident that this will deliver long-term, sustainable value.”
Non-operating items included a number of significant impairments, totalling $4.8 billion on a pre-tax basis, relating primarily to reductions in value of US shale gas assets, certain refineries in the company’s portfolio and the decision to suspend the Liberty project in Alaska.
Operating cash flow for the second quarter, after $1.7 billion of post-tax Gulf of Mexico expenditure, was $4.4 billion, compared to $3.4 billion in the previous quarter. Gearing was 21.9%, reflecting the impact on equity due to the impairments. BP announced a dividend for the quarter of 8c per ordinary share.
BP’s production of oil and gas, excluding TNK-BP, averaged 2.275 million barrels of oil equivalent per day (mmboed) in the second quarter, compared to 2.457 mmboed for the same period last year. Reported production in the third quarter is expected to be slightly lower, as the seasonal turnaround programme continues, before increasing in the fourth quarter.
The document provides a summary of Lundin Gold's activities and achievements in 2018 related to developing its Fruta del Norte gold project in Ecuador. Key highlights include:
- Underground development and construction activities progressed on or ahead of schedule.
- The project received $400 million in equity financing and $350 million in project debt financing.
- Exploration drilling intersected an epithermal system but no significant gold mineralization.
- Environmental, health and safety programs remained a focus, with no major issues recorded.
NorthIsle is a mineral resource company focused on developing its North Island copper-gold porphyry project on northern Vancouver Island, British Columbia. A 2021 preliminary economic assessment showed robust economics for the project, including an after-tax NPV of C$1.1 billion and 19% IRR over a 22-year mine life producing on average 96 million pounds of copper and 100,000 ounces of gold annually. The project benefits from existing infrastructure and has potential for expansion through further exploration of the 50km mineralized trend. NorthIsle is led by an experienced team with a track record of successful mine development and aims to become a leading sustainable mineral resource company.
The document provides an analysis of Devon Energy Corporation (DVN) and recommends not buying the stock. It summarizes DVN's business operations, financial performance, investments and assets. Recent drops in oil prices present risks to DVN since it has shifted its focus to oil exploration and production. An OPEC decision not to cut oil production could further lower prices, negatively impacting DVN's revenues and profits. A discounted cash flow valuation of DVN supports not buying the stock at this time given the risks from lower oil prices.
This 3 sentence summary provides the high level information about the 2007 Annual Report of Newmont Mining Corporation:
The report discusses Newmont's financial and operating results for 2007, noting that production was 5.3 million ounces of gold in line with guidance. It describes strategic actions taken in 2007 to focus on gold, eliminate hedges to take advantage of higher gold prices, invest over $1 billion in projects, and acquire Miramar Mining to gain control of the Hope Bay gold deposit in Canada. The letter to shareholders expresses optimism about Newmont's growth opportunities in 2008 from projects in Peru, Australia, Ghana and Hope Bay and its commitment to sustainability and communities.
This document is Devon Energy Corporation's 1998 annual report. It summarizes Devon acquiring Northstar Energy Corporation through a merger, creating a larger company with increased proved reserves and production. The merger brought Devon oil and gas properties and management experience in Canada, where opportunities were emerging due to improving natural gas pipeline infrastructure and access to US markets, opening previously unexplored regions. However, low oil prices in 1998 reduced Devon's revenues and led to a net loss for the year.
Forum Energy Resources is an oil and gas company focused on natural resource acquisition and exploration in the Philippines. It expects to begin gas production from its Libertad field and coal production from its South Cebu contracts in 2006. Further production could be added through a potential acquisition of Basic Petroleum & Minerals Inc. and its stakes in existing oil fields. Forum has numerous oil and gas prospects through its exploration contracts in the Philippines, including the large Sampaguita prospect. Valuations estimate the company's value could range from £18-21.25 million currently to £234 million - £1.09 billion factoring in its exploration upside potential.
This document provides an annual report and management discussion and analysis for Claude Resources Inc. for the year ending December 31, 2012. Key highlights include:
- Gold production of 49,570 ounces at the Seabee Gold Operation, a 10% increase over 2011.
- Proven and probable reserves of 311,100 ounces of gold and measured and indicated resources of 344,200 ounces as of December 31, 2012.
- Revenue of $80.8 million from the sale of 48,672 ounces of gold at an average price of $1,660 per ounce.
- Net profit of $5.6 million and cash flow from operations of $25.8 million.
- Ongo
Royal gold stream on mount milligan update final (v6.1); revised after callRoyalGold
- Thompson Creek Metals Company owns the Mount Milligan mine in British Columbia, Canada. It has significant gold and copper reserves but faces debt repayment issues.
- Royal Gold has a streaming agreement for gold from Mount Milligan that represents a major portion of its revenue and reserves.
- Royal Gold worked with Centerra Gold and Thompson Creek to negotiate an arrangement where Centerra will acquire Thompson Creek and amend Royal Gold's streaming agreement. This will ensure continued operation of Mount Milligan and maintain value for Royal Gold. The transaction is expected to close in the fall of 2016 pending approvals.
Fortune Minerals Limited is a strategic metals and coal producer that owns two development projects in Canada - the Mount Klappan anthracite coal project in British Columbia and the NICO gold-cobalt-bismuth-copper project in the Northwest Territories and Saskatchewan. The company has secured a joint venture partnership with POSCO for the Mount Klappan project and definitive feasibility studies show robust economics for both projects. Fortune aims to advance both projects towards production to become an emerging producer of metals and coal.
This document provides an overview and discussion of Claude Resources Inc.'s consolidated operating and financial performance for 2012. Some key points:
- Claude is a Canadian gold producer with mining operations at Seabee in Saskatchewan and exploration properties in Saskatchewan and Ontario.
- In 2012, Seabee production was 49,570 ounces of gold sold, an increase from 2011. Exploration continued to expand reserves, particularly at the Santoy Gap deposit near Seabee.
- The company has a working capital deficiency and relies on plans to finalize a new debt facility to refinance upcoming debt repayments and continue as a going concern.
The earnings PowerPoint slide deck used during an earnings call for NFG to highlight their fourth quarter and full year performance. NFG includes Seneca Resources (drilling subsidiary) and Empire Pipeline (midstream subsidiary).
This document provides an overview of Penn Virginia Corporation (PVA), an oil and gas exploration and production company. PVA has transitioned to focus on oil and natural gas liquids (NGLs) production through its Eagle Ford Shale position. It discusses PVA's strategy of growing its oil and NGLs reserves and production, expanding its Eagle Ford acreage, and continued drilling in the play. PVA has significantly grown its oil and NGLs production and shifted the makeup of its reserves to be over 40% oil and NGLs. The company is focused on improving liquidity and growing its oil and liquids cash flows.
Royal gold stream on mount milligan update final (v6.1); revised after callRoyalGold
- Centerra Gold and Thompson Creek Metals entered into an arrangement agreement where Centerra will acquire Thompson Creek.
- The Mount Milligan streaming agreement between Royal Gold and Thompson Creek was amended to combine gold and copper delivery obligations, maintaining Royal Gold's equivalent economic interest.
- The transaction addresses all stakeholder interests, pairs Mount Milligan with a financially strong operator in Centerra, and meets Royal Gold's goals of maintaining value and finding a solid operating partner for Mount Milligan.
This document provides an investor presentation for Crestwood Midstream Partners LP and Crestwood Equity Partners LP. It highlights the companies' nationwide footprint of natural gas and crude oil assets, with a focus on growth opportunities in key basins like the Bakken, Delaware Permian, and Marcellus regions. The presentation outlines Crestwood's contract portfolio and customer mix, balanced across gas, oil, and NGLs. It also summarizes a backlog of announced growth projects expected to drive increased earnings and cash flows through 2018 and beyond.
Penn Virginia is acquiring Eagle Ford Shale assets from Magnum Hunter for approximately $400 million. The assets include 40,565 acres (19,037 net acres) in Gonzales and Lavaca Counties, Texas. As of February 2013, the assets were producing approximately 3,173 BOEPD and are estimated to produce approximately 5,500 BOEPD for the final eight months of 2013. The transaction is estimated to add approximately 12.0 MMBoe of proved reserves to Penn Virginia. The acquisition significantly increases Penn Virginia's footprint in the core of the Eagle Ford shale play in Texas.
- Lundin Gold exceeded its 2021 gold production and cost guidance, producing over 428,000 ounces of gold
- Throughput at the Fruta del Norte mine was expanded from 3,500 tonnes per day to 4,200 tonnes per day, on time and on budget
- 2022 guidance is for gold production of 405,000-445,000 ounces at a cash operating cost of $860-$930 per ounce and average throughput of 4,200 tonnes per day
Fortune Minerals Limited is a strategic metals and coal producer with projects in Canada. Its key assets include the Mount Klappan anthracite coal project in British Columbia and the NICO gold-cobalt-bismuth-copper project in the Northwest Territories and Saskatchewan. The Mount Klappan project has over 200 million tonnes of resources and reserves and a feasibility study showing robust economics. A joint venture with Korean steel producer POSCO provides funding to advance the project towards construction. Fortune also plans to become a vertically integrated producer of metals from the NICO project.
Penn Virginia is acquiring Eagle Ford Shale assets from Magnum Hunter for approximately $400 million. The assets include 40,565 acres adjacent to Penn Virginia's existing position in Gonzales and Lavaca Counties, Texas. The assets are currently producing approximately 3,173 BOEPD and are estimated to produce 5,500 BOEPD for the remaining eight months of 2013. The transaction is expected to be accretive to Penn Virginia's cash flow per share and proved reserves.
20220223 calibre fy 2021 earnings and outlook deck (finAdnetNew
Calibre Mining provided a business update and conference call for Q4 and full year 2021. Some key highlights include:
- Produced 182,755 ounces of gold for the full year, exceeding guidance.
- Increased mineral reserves in Nicaragua to over 1 million ounces of gold after depletion.
- Advancing projects like Pavon Central and Eastern Borosi that are expected to fuel production and cash flow growth in 2023-2024.
- Exploration is ongoing at properties in Nicaragua and Nevada to identify new resources and extend mine lives.
20220223 calibre fy 2021 earnings and outlook deck (fin v2AdnetNew
Calibre Mining provided a business update and discussed its goals of becoming a growth-oriented, Americas-focused mid-tier gold producer. Some highlights include: increasing gold production to 180,000-190,000 ounces in 2022; growing mineral reserves in Nicaragua to over 1 million ounces; advancing high-grade projects like Eastern Borosi and Pavon Central to fuel production and cash flow growth in 2023-2024; and conducting exploration drilling to expand resources and make new discoveries across its Nicaraguan and Nevada assets.
- The document provides management's discussion and analysis of Claude Resources Inc.'s consolidated financial statements for the second quarter of 2012, including operational highlights and financial results.
- Production at Claude's Seabee Gold Operation for Q2 2012 was 12,166 ounces of gold, below forecasts, and full-year production guidance was lowered to 48,000-50,000 ounces.
- Exploration continued across Claude's projects, expanding resources at Seabee and advancing projects at Amisk and Madsen.
- Financially, Claude reported net income of $0.7 million for Q2 2012 on gold sales of 12,306 ounces and revenue of $20.1 million.
This document contains an investor presentation by PVA Oil & Gas regarding their business strategy and operations. PVA has transitioned from primarily focusing on natural gas to oil and natural gas liquids (NGLs) through developing their Eagle Ford Shale position. They plan to continue expanding their Eagle Ford acreage and drilling inventory while growing oil and NGL production and cash flows. PVA's proved reserves are now approximately 40% oil and NGLs, and over 60% of their 2013 production and 85% of revenues are expected to come from oil and NGLs due to the shift in commodity prices favoring liquids over natural gas.
The document discusses Crestwood Midstream Partners LP and Crestwood Equity Partners LP. It provides an overview of the companies, highlights key investor metrics like 2017 adjusted EBITDA guidance and leverage ratios, and outlines growth initiatives focused on the Bakken, Delaware Permian, and Marcellus regions. Specific projects discussed that will drive growth in 2018 and beyond include the Nautilus gathering system, Bear Den processing plants, and the Orla processing plant.
Aberdeen International Inc. provides shareholders access to investments in two exclusive mining projects: African Thunder Platinum, a producing platinum group metals mine in South Africa, and Diablillos Lithium, a lithium brine development project in Argentina. Aberdeen also provides portfolio management and advisory services to Landmark Partners. The presentation discusses the outlook and demand drivers for platinum group metals and lithium, provides details on the two principal investments, and outlines Aberdeen's strategy and recent transactions.
This document provides an overview of Penn Virginia Corporation (PVA), an independent oil and gas exploration and production company. PVA has successfully transitioned its portfolio towards oil and natural gas liquids (NGLs) rich plays like the Eagle Ford Shale. This has driven significant growth in production, revenues, cash flows and margins. However, PVA currently trades at a discount to its peers on earnings and cash flow multiples despite its improved portfolio and growth outlook. Management plans to further build financial liquidity in 2012 through additional asset sales, reducing capital expenditures, and continuing its active hedging program.
The document provides an overview of Penn Virginia Corporation's acquisition of Eagle Ford Hunter, Inc. (MHR). Key points:
- The $400 million acquisition significantly increases PVA's Eagle Ford acreage and production. Pro forma, net Eagle Ford acreage increases 54% and daily oil production increases 42%.
- Sources and uses of funds include $775 million in new senior notes, $40 million from equity issuance, and $400 million for acquisition consideration. Funds will also refinance $300 million senior notes due 2016.
- The acquisition grows PVA's proved reserves 11% to 125.5 MMBOE with 28% oil, increases total proved and developed Eagle Ford reserves 46%
This document provides an annual report and management discussion and analysis for Claude Resources Inc. for the year ending December 31, 2012. Key highlights include:
- Gold production of 49,570 ounces at the Seabee Gold Operation, a 10% increase over 2011.
- Proven and probable reserves of 311,100 ounces of gold and measured and indicated resources of 344,200 ounces as of December 31, 2012.
- Revenue of $80.8 million from the sale of 48,672 ounces of gold at an average price of $1,660 per ounce.
- Net profit of $5.6 million and cash flow from operations of $25.8 million.
- Ongo
Royal gold stream on mount milligan update final (v6.1); revised after callRoyalGold
- Thompson Creek Metals Company owns the Mount Milligan mine in British Columbia, Canada. It has significant gold and copper reserves but faces debt repayment issues.
- Royal Gold has a streaming agreement for gold from Mount Milligan that represents a major portion of its revenue and reserves.
- Royal Gold worked with Centerra Gold and Thompson Creek to negotiate an arrangement where Centerra will acquire Thompson Creek and amend Royal Gold's streaming agreement. This will ensure continued operation of Mount Milligan and maintain value for Royal Gold. The transaction is expected to close in the fall of 2016 pending approvals.
Fortune Minerals Limited is a strategic metals and coal producer that owns two development projects in Canada - the Mount Klappan anthracite coal project in British Columbia and the NICO gold-cobalt-bismuth-copper project in the Northwest Territories and Saskatchewan. The company has secured a joint venture partnership with POSCO for the Mount Klappan project and definitive feasibility studies show robust economics for both projects. Fortune aims to advance both projects towards production to become an emerging producer of metals and coal.
This document provides an overview and discussion of Claude Resources Inc.'s consolidated operating and financial performance for 2012. Some key points:
- Claude is a Canadian gold producer with mining operations at Seabee in Saskatchewan and exploration properties in Saskatchewan and Ontario.
- In 2012, Seabee production was 49,570 ounces of gold sold, an increase from 2011. Exploration continued to expand reserves, particularly at the Santoy Gap deposit near Seabee.
- The company has a working capital deficiency and relies on plans to finalize a new debt facility to refinance upcoming debt repayments and continue as a going concern.
The earnings PowerPoint slide deck used during an earnings call for NFG to highlight their fourth quarter and full year performance. NFG includes Seneca Resources (drilling subsidiary) and Empire Pipeline (midstream subsidiary).
This document provides an overview of Penn Virginia Corporation (PVA), an oil and gas exploration and production company. PVA has transitioned to focus on oil and natural gas liquids (NGLs) production through its Eagle Ford Shale position. It discusses PVA's strategy of growing its oil and NGLs reserves and production, expanding its Eagle Ford acreage, and continued drilling in the play. PVA has significantly grown its oil and NGLs production and shifted the makeup of its reserves to be over 40% oil and NGLs. The company is focused on improving liquidity and growing its oil and liquids cash flows.
Royal gold stream on mount milligan update final (v6.1); revised after callRoyalGold
- Centerra Gold and Thompson Creek Metals entered into an arrangement agreement where Centerra will acquire Thompson Creek.
- The Mount Milligan streaming agreement between Royal Gold and Thompson Creek was amended to combine gold and copper delivery obligations, maintaining Royal Gold's equivalent economic interest.
- The transaction addresses all stakeholder interests, pairs Mount Milligan with a financially strong operator in Centerra, and meets Royal Gold's goals of maintaining value and finding a solid operating partner for Mount Milligan.
This document provides an investor presentation for Crestwood Midstream Partners LP and Crestwood Equity Partners LP. It highlights the companies' nationwide footprint of natural gas and crude oil assets, with a focus on growth opportunities in key basins like the Bakken, Delaware Permian, and Marcellus regions. The presentation outlines Crestwood's contract portfolio and customer mix, balanced across gas, oil, and NGLs. It also summarizes a backlog of announced growth projects expected to drive increased earnings and cash flows through 2018 and beyond.
Penn Virginia is acquiring Eagle Ford Shale assets from Magnum Hunter for approximately $400 million. The assets include 40,565 acres (19,037 net acres) in Gonzales and Lavaca Counties, Texas. As of February 2013, the assets were producing approximately 3,173 BOEPD and are estimated to produce approximately 5,500 BOEPD for the final eight months of 2013. The transaction is estimated to add approximately 12.0 MMBoe of proved reserves to Penn Virginia. The acquisition significantly increases Penn Virginia's footprint in the core of the Eagle Ford shale play in Texas.
- Lundin Gold exceeded its 2021 gold production and cost guidance, producing over 428,000 ounces of gold
- Throughput at the Fruta del Norte mine was expanded from 3,500 tonnes per day to 4,200 tonnes per day, on time and on budget
- 2022 guidance is for gold production of 405,000-445,000 ounces at a cash operating cost of $860-$930 per ounce and average throughput of 4,200 tonnes per day
Fortune Minerals Limited is a strategic metals and coal producer with projects in Canada. Its key assets include the Mount Klappan anthracite coal project in British Columbia and the NICO gold-cobalt-bismuth-copper project in the Northwest Territories and Saskatchewan. The Mount Klappan project has over 200 million tonnes of resources and reserves and a feasibility study showing robust economics. A joint venture with Korean steel producer POSCO provides funding to advance the project towards construction. Fortune also plans to become a vertically integrated producer of metals from the NICO project.
Penn Virginia is acquiring Eagle Ford Shale assets from Magnum Hunter for approximately $400 million. The assets include 40,565 acres adjacent to Penn Virginia's existing position in Gonzales and Lavaca Counties, Texas. The assets are currently producing approximately 3,173 BOEPD and are estimated to produce 5,500 BOEPD for the remaining eight months of 2013. The transaction is expected to be accretive to Penn Virginia's cash flow per share and proved reserves.
20220223 calibre fy 2021 earnings and outlook deck (finAdnetNew
Calibre Mining provided a business update and conference call for Q4 and full year 2021. Some key highlights include:
- Produced 182,755 ounces of gold for the full year, exceeding guidance.
- Increased mineral reserves in Nicaragua to over 1 million ounces of gold after depletion.
- Advancing projects like Pavon Central and Eastern Borosi that are expected to fuel production and cash flow growth in 2023-2024.
- Exploration is ongoing at properties in Nicaragua and Nevada to identify new resources and extend mine lives.
20220223 calibre fy 2021 earnings and outlook deck (fin v2AdnetNew
Calibre Mining provided a business update and discussed its goals of becoming a growth-oriented, Americas-focused mid-tier gold producer. Some highlights include: increasing gold production to 180,000-190,000 ounces in 2022; growing mineral reserves in Nicaragua to over 1 million ounces; advancing high-grade projects like Eastern Borosi and Pavon Central to fuel production and cash flow growth in 2023-2024; and conducting exploration drilling to expand resources and make new discoveries across its Nicaraguan and Nevada assets.
- The document provides management's discussion and analysis of Claude Resources Inc.'s consolidated financial statements for the second quarter of 2012, including operational highlights and financial results.
- Production at Claude's Seabee Gold Operation for Q2 2012 was 12,166 ounces of gold, below forecasts, and full-year production guidance was lowered to 48,000-50,000 ounces.
- Exploration continued across Claude's projects, expanding resources at Seabee and advancing projects at Amisk and Madsen.
- Financially, Claude reported net income of $0.7 million for Q2 2012 on gold sales of 12,306 ounces and revenue of $20.1 million.
This document contains an investor presentation by PVA Oil & Gas regarding their business strategy and operations. PVA has transitioned from primarily focusing on natural gas to oil and natural gas liquids (NGLs) through developing their Eagle Ford Shale position. They plan to continue expanding their Eagle Ford acreage and drilling inventory while growing oil and NGL production and cash flows. PVA's proved reserves are now approximately 40% oil and NGLs, and over 60% of their 2013 production and 85% of revenues are expected to come from oil and NGLs due to the shift in commodity prices favoring liquids over natural gas.
The document discusses Crestwood Midstream Partners LP and Crestwood Equity Partners LP. It provides an overview of the companies, highlights key investor metrics like 2017 adjusted EBITDA guidance and leverage ratios, and outlines growth initiatives focused on the Bakken, Delaware Permian, and Marcellus regions. Specific projects discussed that will drive growth in 2018 and beyond include the Nautilus gathering system, Bear Den processing plants, and the Orla processing plant.
Aberdeen International Inc. provides shareholders access to investments in two exclusive mining projects: African Thunder Platinum, a producing platinum group metals mine in South Africa, and Diablillos Lithium, a lithium brine development project in Argentina. Aberdeen also provides portfolio management and advisory services to Landmark Partners. The presentation discusses the outlook and demand drivers for platinum group metals and lithium, provides details on the two principal investments, and outlines Aberdeen's strategy and recent transactions.
This document provides an overview of Penn Virginia Corporation (PVA), an independent oil and gas exploration and production company. PVA has successfully transitioned its portfolio towards oil and natural gas liquids (NGLs) rich plays like the Eagle Ford Shale. This has driven significant growth in production, revenues, cash flows and margins. However, PVA currently trades at a discount to its peers on earnings and cash flow multiples despite its improved portfolio and growth outlook. Management plans to further build financial liquidity in 2012 through additional asset sales, reducing capital expenditures, and continuing its active hedging program.
The document provides an overview of Penn Virginia Corporation's acquisition of Eagle Ford Hunter, Inc. (MHR). Key points:
- The $400 million acquisition significantly increases PVA's Eagle Ford acreage and production. Pro forma, net Eagle Ford acreage increases 54% and daily oil production increases 42%.
- Sources and uses of funds include $775 million in new senior notes, $40 million from equity issuance, and $400 million for acquisition consideration. Funds will also refinance $300 million senior notes due 2016.
- The acquisition grows PVA's proved reserves 11% to 125.5 MMBOE with 28% oil, increases total proved and developed Eagle Ford reserves 46%
This document discusses the boundaries of the Marcellus and Utica shale formations in 5 states - Pennsylvania, Ohio, West Virginia, New York, and Maryland. For each state, the overview section provides a high-level look at the geographic extent of these underground shale deposits.
USGS Study Identifying Best Sources for Groundwater for Use in NY Fracking Op...Marcellus Drilling News
A newly releases study from the U.S. Geological Survey that identifies three several-mile-long sections of the Susquehanna River Valley aquifer that are the most favorable for potential large-scale groundwater supply along the Susquehanna Valley's 32-mile reach in Broome and Chenango counties (New York). Essentially the USGS is saying, "Here's the best sources for water for use in fracking, when and if it happens in NY".
A paper published in EOS, a journal by the American Geophysical Union, by U.S. Geological Survey scientists. The paper is titled "Can Shale Safely Host U.S. Nuclear Waste?" and reports the physical properties of shale deposits make shale a "promising option" to dispose spent nuclear waste. The researchers say that shale has an abosorbency that makes it suitable to protect against any migration of nuclear waste to the surface where it might contaminate water supplies.
A sample of a new report from the ShaleNavigator online mapping service. ShaleNavigator "Pro" subscribers can now produce reports displaying shale oil and gas wells, well permits, pipelines, and lease offer information near properties of interest on the fly for a specific address. The report shows these details for both a 2 mile and 5 mile radius around the address you specify.
A letter issued by the Joint Landowners Coalition of New York to member landowners and the general public on the status of the lawsuit they intend to file on behalf of landowners against New York State over its ongoing moratorium on hydraulic fracturing.
A quarterly report from EQT Corporation updating investors and others on production and the company's financial postion. During 2Q13, EQT was the second company ever to hit 1 billion cubic feet per day of Marcellus Shale gas production. They also announced they will drill up 22 Upper Devonian Shale wells in 2013--a shale layer a few hundred feet above the Marcellus.
ALL SPACE RESERVATIONS AND MATERIALS MUST BE RECEIVED NO LATER THAN FEBRUARY 29, 2012 TO:
Amy Kaczynski
Stonewall Marketing
90 MacCorkle Ave, SW
South Charleston, WV 25303
Phone: 304-957-9313
Fax: 304-744-7104
akaczynski@stonewallgroup.com
The document appears to be notes from Kate Gallagher, who works for a digital marketing agency called Paramore. She is providing a refresher on social media best practices from 2011. The notes include recommendations such as having a social media strategy, using content like photos and videos, and free tools like HootSuite for managing multiple social media profiles. She also proposes an idea for Tennessee Travel Tuesday to offer consumer discounts, partner exposure and build a social media audience.
A financial and operational update from Norse Energy Corp. for the second quarter of 2013. The report tells the dire situation the company finds itself in. They are currently in bankruptcy because New York State refuses to allow shale drilling. Norse owns a veritable gold mine in NY--130,000 acres of shale leases--that they can't use. They are being forced under bankruptcy to sell the leases, although no one is willing to pay good money for the leases with the ongoing uncertainty in NY state. This update states that the company may not be "a going concern" unless they get a good deal for their last remaining asset--the leases--or unless NY state allows drilling.
- Noble Energy reported financial and operational results for Q4 2015, with adjusted net income of $191 million. However, reported net loss was $2.0 billion due to non-cash impairments and other adjustments.
- Q4 sales volumes were a record 422 MBoe/d, with US volumes of 295 MBoe/d and international volumes of 127 MBoe/d.
- Capital expenditures for Q4 were $527 million, below guidance and less than discretionary cash flow and cash from operations. Noble exited Q4 with $5 billion in liquidity including cash.
Running head EXTERNAL AND INTERNAL ENVIRONMENTAL ANALYSIS1.docxcowinhelen
Running head: EXTERNAL AND INTERNAL ENVIRONMENTAL ANALYSIS
1
EXTERNAL AND INTERNAL ENVIRONMENTAL ANALYSIS
2
Perform an external and internal environmental analysis for your Learning Team’s company.
Write a summary of about 2,000 words that does the following:
· Identifies and analyzes the most important external environmental factor in the remote, industry, and operating environments
· Identifies and analyzes the most important internal strengths and weaknesses of your organization: Include an assessment of the organization’s resources.
Format your paper consistent with APA guidelines
External and Internal Environmental Analysis
Your Name:
School Name:
Date
External and Internal Environmental Analysis
U.S. Energy Corporation (USEC) provides service in the production and development of natural gas and oil in the United States. Founded in 1966 in Wyoming and focusing on “the development of natural resource assets — acquiring properties on favorable terms, adding value through the application of its expertise in the natural resources sector, and seeking joint venture partners to assist in the development of its projects”. USEC is an independent exploration and production company that has large and diverse prospects through North Dakota and Montana as well as Texas and the Gulf of Mexico. Team B will be identifying and analyzing the external environmental factor in the remote, industry, and operating environments in addition to the internal strengths and weaknesses of USEC.Included will be an assessment of the company’s resources.
Remote factors
USEC economic remote factors can have a huge effect on the company. The market is one of the largest factors because this can affect the prices of natural gas and oil. The demand for natural gas and oil as well as geothermal, and molybdenum are also another factor.USECkeeps constant trends and motoring on these factors because it can affect the production. The company so far has maintained the financial part of the business without outsourcing for capital. Other economic factors are the contracts in developing and mining and the commodity derivative contracts. The commodity derivative contract, also called “economic hedges” objective is to reduce the effect of price changes on a portion of future oil production; achieve more predictable cash flows in an environment of volatile oil and gas prices, and to manage exposure to commodity price risk. The use of these derivative instruments limits the downside risk of adverse price movements. The commodity derivative prices can effect the changes in the market
Demand, pipeline capacity constraints, weather, and the economic activities, and other factors.
Social Factors
The USEC has built a strong culture that has made it possible for the company “to create opportunities which we can then convert into positive return for shareholders”. The company does not deal directly with the consumer but the company does have stockholders and intermediates bond ...
1. In 2012, affiliates of Apollo Global Management, Riverstone Holdings, Access Industries, and KNOC acquired EP Energy from El Paso Corporation for $7.2 billion.
2. The acquisition was attractive due to EP Energy's oil and natural gas acreage in profitable regions like the Niobrara, Eagle Ford, and Wolf Camp fields.
3. EP Energy is an oil and gas exploration and production company with assets in the US, Brazil, and Egypt. The $7.2 billion acquisition was financed through equity investments, debt issuances, and term loans.
The analyst raises their 2001 EPS estimate for Evergreen Resources Corporation from $2.62 to $3.09 and their 2001 DCF estimate from $4.43 to $5.21 based on higher expected natural gas prices. They also introduce 2002 EPS and DCF estimates of $3.14 and $5.16, respectively. Production is currently tracking in line with expectations but is unlikely to exceed forecasts. The analyst maintains their buy rating until production in the Raton Basin exceeds expectations.
A slide presentation issued by pure play Marcellus driller Trans Energy Inc. Their operations are mostly located in the northern panhandle region of West Virginia. The presentation is full of useful charts and maps detailing Trans Energy's operations in WV. We especially like the Competitive Market Position map on Slide 8.
Sukuk Has Tremendous Potential in the USA as a Capital Raising Instrumentprcircle
Camille Paldi, CEO of the Franco-American Alliance for Islamic Finance (FAAIF), a US citizen with an MA in Islamic Finance from Durham University (UK), explains sukuk to a US audience at the Chicago Islamic Finance Conference.
Shell Financial And Operational Information 2003 2007earningsreport
This document summarizes Shell's annual reports and publications for 2007. It provides an overview of Shell's businesses including exploration and production, gas and power, oil sands, oil products, and chemicals. It also summarizes Shell's major projects, financial statements, business segment earnings, and proved oil and gas reserves for 2007. Key information includes total revenues of $355.8 billion, income for the period of $31.9 billion, and basic earnings per share of $3.97.
The investor presentation issued by Magnum Hunter in September 2013. We believe this slide deck, or one very similar to this one, was used at the IPAA Oil & Gas Investment Symposium in San Francisco where MH CEO Gary Evans spoke. Slides #13-#27 are of interest to Marcellus Drilling News readers as they deal with MH's Marcellus and Utica Shale drilling operations and future plans. Some great charts, maps and pictures of operations in the Marcellus and Utica Shale!
Noble Energy is an independent oil and gas exploration and production company. Their diverse portfolio includes assets in unconventional plays in the US and offshore assets globally. Valuation of Noble Energy requires analyzing historical and projected financial statements to determine the value based on future cash flows. The oil and gas industry faces various risks but also benefits from growing global energy demand and technological advancements that allow access to new reserves. Competitors of Noble Energy include Devon Energy, Hess Corporation, and Marathon Oil in the independent exploration and production sector.
CHK presented its April 2013 investor presentation, which included the following key points:
1) CHK is focused on optimizing its portfolio of premier U.S. shale gas and oil assets by improving its production mix towards more liquids and reducing costs, while monetizing non-core assets and reducing debt.
2) Production in 4Q12 was 3.931 bcfe/d, up 9% year-over-year, with liquids comprising 23% of total production. CHK is projecting 27% liquids production growth in 2013.
3) CHK has substantially reduced its 2013 drilling and completion capital expenditure budget by 32% from 2012 levels to $6 billion, focusing over 85% of spending
U.S. Oil & Gas plc (USOG) is an Irish company with oil and gas exploration leases in Nevada, USA. USOG drilled its first well, Eblana #1, in 2012, which produced small amounts of high quality crude oil. USOG is preparing a three-well drilling program to potentially book proven reserves of up to 19 million barrels of oil. If successful, USOG could become an oil producer, generating an estimated $16.7 million in net income in 2015. The company faces challenges in converting its exploration prospects to reserves and starting oil production, but an independent analysis valued USOG's Nevada assets at $38.7 million compared to its current $30.1 million
PVA is an E&P company focused on growing its oil and liquids production. It has successfully transitioned to focus on oil-rich plays like the Eagle Ford shale, where it has over 23,000 net acres and strong drilling results. PVA's strategy has led to significant growth in EBITDAX and cash operating margins as oil prices have increased. The company is working to improve its liquidity by selling gas-heavy assets and reducing capital spending while maintaining its core gas portfolio for potential future price recovery. Upcoming catalysts include further exploration and development success in the Eagle Ford and Mid-Continent plays.
This presentation provides an overview of an investment opportunity in EcoStim, an oilfield services company. It summarizes EcoStim's plans to refinance and restructure the company through a debt-to-equity conversion, raising $17 million in new capital. This will allow EcoStim to pursue growth in Argentina, where it currently operates, and expand into the US market in Oklahoma in 2017. The presentation outlines EcoStim's technology-driven service offerings and growth strategy, as well as the experience and track record of its management team in previously building and exiting energy companies.
This document is Devon Energy Corporation's 2005 Annual Report. It summarizes the company's key accomplishments for the year, including record financial results and adding nearly 440 million barrels of proved oil and gas reserves, almost double the amount produced. It highlights successful drilling projects like the Barnett Shale that contributed significantly to reserve growth. The report also discusses Devon's strategy of investing in longer-term projects to ensure sustainable growth, such as discoveries in the deepwater Gulf of Mexico and the Jackfish oil sands project in Canada.
Company Profile (Occidental Petroleum Corporation)Muhammad Hasnain
I wrote this company profile as a part of my two weeks online course at Coursera conducted by Duke University. Readers can find a set of brief facts about 'Occidental Petroleum Corporation' that are good enough to get an overall review of the company's operations and performance over time.
PVA is an E&P company focused on transitioning to oil and liquids production. It has built up a position in the Eagle Ford shale play with over 25,000 net acres and 250 well locations. PVA is executing a strategy of continued drilling in the Eagle Ford to grow its oil and liquids production and cash flows. It is also taking steps to improve its financial liquidity by selling non-core assets and reducing capital spending and dividends. PVA sees opportunities to expand its oil and liquids reserves and drilling inventory through further exploration and leasing in South Texas and other oil-rich plays.
PVA is an E&P company focused on transitioning to oil and liquids production. It has built up a position in the Eagle Ford shale through leasing and exploration, and now has nearly 25,000 net acres and up to 250 well locations. PVA has grown its oil/NGL production significantly in recent years through Eagle Ford development. It is also exploring other oil prospects while retaining gas-heavy assets. PVA's strategy is focused on continuing its transition to oil, expanding its drilling inventory, improving liquidity, and growing its oil and liquids production and cash flows.
PVA is an E&P company focused on transitioning from natural gas to oil production through development of its Eagle Ford Shale position. It has grown its Eagle Ford acreage and is seeing strong production and reserve growth from its Eagle Ford drilling program. PVA is also taking steps to improve its financial liquidity by selling non-core assets and reducing capital spending and dividends. Its strategy is focused on continued expansion of its Eagle Ford drilling inventory and reserves to grow its oil and liquids production and cash flows.
PVA is an oil and gas E&P company focused on growing its oil and liquids production. It has successfully transitioned to focus on oil-rich plays like the Eagle Ford shale, growing its oil production significantly. PVA is working to improve its liquidity through asset sales and reducing capital spending while maintaining strong drilling results in its key oil assets. The company remains attractively valued given its transition towards oilier production and reserves.
Similar to Norse Energy 1Q13 Report - Holding on by a Thread (20)
The document summarizes five key facts about the recovery of US shale oil production:
1) Rig counts have increased by 90% since bottoming out in May 2016 and are up 30% year-over-year, signaling increased drilling and production capacity.
2) While decline rates remain steep, production profiles have increased substantially due to technological advances, meaning aggregate supply will be stronger.
3) Preliminary data shows that net new shale supply turned positive in December 2016 for the first time since March 2015, recovering just 7 months after rig counts increased.
4) Increased drilling activity is supported by a large stock of drilled but uncompleted wells, demonstrating the recovery and expansion of the shale sector.
5)
Quarterly legislative action update: Marcellus and Utica shale region (4Q16)Marcellus Drilling News
A quarterly update from the legal beagles at global law firm Norton Rose Fulbright. A quarterly legislative action update for the second quarter of 2016 looking at previously laws acted upon, and new laws introduced, affecting the oil and gas industry in Pennsylvania, Ohio and West Virginia.
An update from Spectra Energy on their proposed $3 billion project to connect four existing pipeline systems to flow more Marcellus/Utica gas to New England. In short, Spectra has put the project on pause until mid-2017 while it attempts to get new customers signed.
A letter from Rover Pipeline to the Federal Energy Regulatory Commission requesting the agency issue the final certificate that will allow Rover to begin tree-clearing and construction of the 511-mile pipeline through Pennsylvania, West Virginia, Ohio and Michigan. If the certificate is delayed beyond the end of 2016, it will delay the project an extra year due to tree-clearing restrictions (to accommodate federally-protected bats).
DOE Order Granting Elba Island LNG Right to Export to Non-FTA CountriesMarcellus Drilling News
An order issued by the U.S. Dept. of Energy that allows the Elba Island LNG export facility to export LNG to countries with no free trade agreement with the U.S. Countries like Japan and India have no FTA with our country (i.e. friendly countries)--so this is good news indeed. Although the facility would have operated by sending LNG to FTA countries, this order opens the market much wider.
A study released in December 2016 by the London School of Economics, titled "On the Comparative Advantage of U.S. Manufacturing: Evidence from the Shale Gas Revolution." While America has enough shale gas to export plenty of it, exporting it is not as economic as exporting oil due to the elaborate processes to liquefy and regassify natural gas--therefore a lot of the gas stays right here at home, making the U.S. one of (if not the) cheapest places on the planet to establish manufacturing plants, especially for manufacturers that use natural gas and NGLs (natural gas liquids). Therefore, manufacturing, especially in the petrochemical sector, is ramping back up in the U.S. For every two jobs created by fracking, another one job is created in the manufacturing sector.
Letter From 24 States Asking Trump & Congress to Withdraw the Unlawful Clean ...Marcellus Drilling News
A letter from the attorneys general from 24 of the states opposed to the Obama Clean Power Plan to President-Elect Trump, RINO Senate Majority Leader Mitch McConnel and RINO House Speaker Paul Ryan. The letter asks Trump to dump the CPP on Day One when he takes office, and asks Congress to adopt legislation to prevent the EPA from such an egregious overreach ever again.
Report: New U.S. Power Costs: by County, with Environmental ExternalitiesMarcellus Drilling News
Natural gas and wind are the lowest-cost technology options for new electricity generation across much of the U.S. when cost, public health impacts and environmental effects are considered. So says this new research paper released by The University of Texas at Austin. Researchers assessed multiple generation technologies including coal, natural gas, solar, wind and nuclear. Their findings are depicted in a series of maps illustrating the cost of each generation technology on a county-by-county basis throughout the U.S.
Annual report issued by the U.S. Energy Information Administration showing oil and natural gas proved reserves, in this case for 2015. These reports are issued almost a year after the period for which they report. This report shows proved reserves for natural gas dropped by 64.5 trillion cubic feet (Tcf), or 16.6%. U.S. crude oil and lease condensate proved reserves also decreased--from 39.9 billion barrels to 35.2 billion barrels (down 11.8%) in 2015. Proved reserves are calculated on a number of factors, including price.
The document is a report from the U.S. Energy Information Administration analyzing oil and gas production from seven regions in the U.S. It includes charts and tables showing historical and projected production levels of oil and gas from each region from 2008 to 2017, as well as metrics like the average production per rig. The regions - Bakken, Eagle Ford, Haynesville, Marcellus, Niobrara, Permian, and Utica - accounted for 92% of domestic oil production growth and all domestic natural gas production growth from 2011-2014.
Velocys is the manufacturer of gas-to-liquids (GTL) plants that convert natural gas (a hyrdocarbon) into other hydrocarbons, like diesel fuel, gasoline, and even waxes. This PowerPoint presentation lays out the Velocys plan to get the company growing. GTL plants have not (so far) taken off in the U.S. Velocys hopes to change that. They specialize in small GTL plants.
PA DEP Revised Permit for Natural Gas Compression Stations, Processing Plants...Marcellus Drilling News
In January 2016, Gov. Wolf announced the DEP would revise its current general permit (GP-5) to update the permitting requirements for sources at natural gas compression, processing, and transmission facilities. This is the revised GP-5.
PA DEP Permit for Unconventional NatGas Well Site Operations and Remote Piggi...Marcellus Drilling News
In January 2016, PA Gov. Wolf announced the Dept. of Environmental Protection would develop a general permit for sources at new or modified unconventional well sites and remote pigging stations (GP-5A). This is the proposed permit.
Onerous new regulations for the Pennsylvania Marcellus Shale industry proposed by the state Dept. of Environmental Protection. The new regs will, according to the DEP, help PA reduce so-called fugitive methane emissions and some types of air pollution (VOCs). This is liberal Gov. Tom Wolf's way of addressing mythical man-made global warming.
The monthly Short-Term Energy Outlook (STEO) from the U.S. Energy Information Administration for December 2016. This issue makes a couple of key points re natural gas: (1) EIA predicts that natural gas production in the U.S. for 2016 will see a healthy decline over 2015 levels--1.3 billion cubic feet per day (Bcf/d) less in 2016. That's the first annual production decline since 2005! (2) The EIA predicts the average price for natural gas at the benchmark Henry Hub will climb from $2.49/Mcf (thousand cubic feet) in 2016 to a whopping $3.27/Mcf in 2017. Why the jump? Growing domestic natural gas consumption, along with higher pipeline exports to Mexico and liquefied natural gas exports.
This document provides an overview of the natural gas market in the Northeast United States, including New England, New York, New Jersey, and Pennsylvania. It details statistics on gas customers, consumption, infrastructure like pipelines and storage, and production. A key point is that the development of the Marcellus Shale in Pennsylvania has significantly increased domestic gas production in the region and reduced its reliance on other supply basins and imports.
The Pennsylvania Public Utility Commission responded to each point raised in a draft copy of the PA Auditor General's audit of how Act 13 impact fee money, raised from Marcellus Shale drillers, gets spent by local municipalities. The PUC says it's not their job to monitor how the money gets spent, only in how much is raised and distributed.
Pennsylvania Public Utility Commission Act 13/Impact Fees Audit by PA Auditor...Marcellus Drilling News
A biased look at how 60% of impact fees raised from PA's shale drilling are spent, by the anti-drilling PA Auditor General. He chose to ignore an audit of 40% of the impact fees, which go to Harrisburg and disappear into the black hole of Harrisburg spending. The Auditor General claims, without basis in fact, that up to 24% of the funds are spent on items not allowed under the Act 13 law.
The final report from the Pennsylvania Dept. of Environmental Protection that finds, after several years of testing, no elevated levels of radiation from acid mine drainage coming from the Clyde Mine, flowing into Ten Mile Creek. Radical anti-drillers tried to smear the Marcellus industry with false claims of illegal wastewater dumping into the mine, with further claims of elevated radiation levels in the creek. After years of testing, the DEP found those allegations to be false.
FERC Order Denying Stay of Kinder Morgan's Broad Run Expansion ProjectMarcellus Drilling News
The Federal Energy Regulatory Commission denied a request to stay the authorization of Tennessee Gas Pipeline Company's Broad Run Expansion Project. The Commission found that the intervenors requesting the stay did not demonstrate they would suffer irreparable harm if the project proceeded. Specifically, the Commission determined that the environmental impacts to forest and a nearby animal rehabilitation center would be insignificant. Additionally, conditioning authorization on future permits did not improperly encroach on state authority. Therefore, justice did not require granting a stay.
Here is Gabe Whitley's response to my defamation lawsuit for him calling me a rapist and perjurer in court documents.
You have to read it to believe it, but after you read it, you won't believe it. And I included eight examples of defamatory statements/
Essential Tools for Modern PR Business .pptxPragencyuk
Discover the essential tools and strategies for modern PR business success. Learn how to craft compelling news releases, leverage press release sites and news wires, stay updated with PR news, and integrate effective PR practices to enhance your brand's visibility and credibility. Elevate your PR efforts with our comprehensive guide.
Youngest c m in India- Pema Khandu BiographyVoterMood
Pema Khandu, born on August 21, 1979, is an Indian politician and the Chief Minister of Arunachal Pradesh. He is the son of former Chief Minister of Arunachal Pradesh, Dorjee Khandu. Pema Khandu assumed office as the Chief Minister in July 2016, making him one of the youngest Chief Ministers in India at that time.
13062024_First India Newspaper Jaipur.pdfFIRST INDIA
Find Latest India News and Breaking News these days from India on Politics, Business, Entertainment, Technology, Sports, Lifestyle and Coronavirus News in India and the world over that you can't miss. For real time update Visit our social media handle. Read First India NewsPaper in your morning replace. Visit First India.
CLICK:- https://firstindia.co.in/
#First_India_NewsPaper
2. FIRST QUARTER REPORT 2013
Page 2
CONTENTS
CORPORATE OVERVIEW 3
FIRST QUARTER HIGHLIGHTS AND SUBSEQUENT EVENTS 4
DISCUSSION OF KEY EVENTS 5
OUTLOOK 8
INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 11
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 15
GLOSSARY 23
NOTES 25
Norse Energy is listed in Norway (OSE ticker code “NEC”).
3. FIRST QUARTER REPORT 2013
Page 3
CORPORATE OVERVIEW
Norse Energy is an oil and gas exploration, development, and production company focusing on US onshore oil
and gas opportunities. As of 31 December 2012, the Company owned or leased ~130,000 net acres covering
multiple stacked pay formations in New York State in the Appalachian basin, one of the premier oil and gas
provinces in the world. Of this acreage, ~33,000 net acres 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 in Central New
York.
All of the Company’s 951 net MMBOE certified resources are in New York State whose long-awaited (~ 4 ½
years) issuance of its Supplemental Generic Environmental Impact Statement (“SGEIS”) that would allow High
Volume Hydraulic Fracturing (“HVHF”) application failed to materialize during 2012 and 2013 to date. The
Company continues to expect SGEIS issuance in 2013. However there is no guarantee that this will happen.
Progression of the Company’s large resource base is dependent on SGEIS that would allow for the application of
this HVHF technology, a proven shale recovery mechanism in the Marcellus and Utica shales in nearby states like
Ohio and Pennsylvania, and in other shale basins in the US. HVHF costs and recovery reported by operators
outside New York State have continued to mature and improve since the 2008 ‘shale revolution’.
Faced with this dilemma, a declining cash balance, limited revenue, and a New York court judgment to escrow
USD 7.65 Million as a result of the Bradford Drilling LLC lawsuit, Norse’s US subsidiaries Norse Energy Corp.
USA and Norse Energy Holdings Inc. filed a voluntary petition for US Chapter 11 bankruptcy protection in early
December 2012.
In the 4-5 months since filing the petition for Chapter 11 bankruptcy protection, Norse Energy has reduced its
monthly burn rate and secured Debtor-in- Possession (“DIP”) financing. The DIP financing allows the Company
to continue to operate while in bankruptcy during which time the Company is preparing for asset sales and
creating other restructuring plans for bankruptcy court approval that would satisfy the needs of its US creditors
and all other US stakeholders. The DIP loan requires asset sales sufficient to pay off the loan. Alternative (and
additional) financing plans are also being considered, including raising further debt and/or equity. Should these
efforts fail, Norse’s US subsidiaries risk running out of cash before the end of 3Q 2013. The Company’s goal is to
generate enough liquidity to sustain operations and exit US Chapter 11 as quickly as possible. To this end, the
Company will continue to seek ways to reduce the Company’s burn rate even further.
The Company also received EGM approval on 31 May for the restructuring agreement that its Norwegian parent
NEC ASA and certain of its bondholders, convertible lenders and shareholders had reached that will (i) facilitate a
comprehensive restructuring of the group's balance sheet and (ii) provide NOK 7.1 Million of new funding for NEC
ASA. EGM approval provides several months of operating runway for NEC ASA, and reduces the Company’s
total debt position, inclusive of the DIP financing to ~USD 11 Million.
The Company expects that the costs to fully develop its acreage will be shared with industry partners who have
much greater financial resources than the Company. It is likely that the Company will sell a significant amount of
its owned working interest in the acreage and/or establish strategic partnerships with companies having greater
financial resources and operating capabilities. Pursuit of any strategic operating partnership may be contingent
on exiting US Chapter 11 bankruptcy whereas assets sales are one of the conditions in the DIP loan.
The Company has reduced its burn rate. Total Norse staff has been reduced to ten (10). Houston and Buffalo
office leases are on a month-to-month basis. The Company continues to seek ways to reduce its burn rate even
further.
The ability of the Company to remain a going concern requires further asset sales, equity issuances, and/or debt
issuances. The Company remains concerned about being able to execute asset sales and/or raise debt/equity
before the DIP loan runs out by the third quarter. Please see sections “Outlook”, “Cash and Liquidity” and “Going
Concern Outlook” below.
4. FIRST QUARTER REPORT 2013
Page 4
FIRST QUARTER HIGHLIGHTS AND
SUBSEQUENT EVENTS
(ALL REFERENCES TO USD IN THIS REPORT ARE IN USD 000’s UNLESS THE TEXT INDICATES
OTHERWISE)
Schlumberger, the Company’s long-standing Reserves and Resources certification agent, reaffirmed the
Company’s large resource position of 951 net MMBOE at the end of 2012
The Company removed its “NSEEY” listing from the OTCQX. The Company's securities remained
eligible for U.S. quotation on the OTC Pink Sheet platform.
The Company’s US subsidiaries, Norse Energy Corp. USA and Norse Energy Holdings, Inc., reached an
agreement with a Norwegian-based Special Purpose Vehicle funded by certain existing NEC ASA
lenders for a USD 3.8 million Debtor in Possession loan
The Company’s Norwegian parent NEC ASA and certain of its bondholders, convertible lenders and
management reached a restructuring agreement that will (i) facilitate a comprehensive restructuring of
the group's balance sheet and (ii) provide NOK 7.1 Million of new funding for NEC ASA
5. FIRST QUARTER REPORT 2013
Page 5
DISCUSSION OF KEY EVENTS
Environment Health and Safety
Protection of the environment, health, and safety remains the Company’s top priority. During the first quarter,
there were no lost work time incidents or accidents.
Financial
Financing
The Company’s US subsidiaries, Norse Energy Corp. USA (“NEC USA”) and Norse Energy Holdings Inc.
(“NEHI”) secured Debtor-in-Possession (“DIP”) financing of USD 3.8 Million. The cash is being used to pay post-
petition claims and provide operating runway for NEC USA/NEHI in to 3Q 2013.
The Company’s Norwegian parent, Norse Energy Corp. ASA (“NEC ASA”) secured new funding from a private
shareholder group of NOK 7.1 Million. The cash is being used to pay outstanding accounts and provide operating
runway for NEC ASA.
Technical
Acreage Position
The E&P business segment, known as Norse Energy Corp. USA, controls the right to develop oil and gas through
a combination of lease and owned fee mineral interests on approximately 130,000 net working interest acres in
New York State. The Company expects to produce natural gas through the development of the Utica Shale
Formation and the Marcellus Shale Formation, and potentially other formations in the same area in Central New
York (principally in Madison, Chenango and Broome Counties) and liquids rich gas from the Marcellus and dry
gas from the Utica Shale in Western New York (primarily in Cattaraugus and Allegany Counties).
In the Central New York Area, Norse controls approximately 97,000 net acres. In that 97,000 acres, Norse has
rights to all formations and depths on approximately 89,000 net acres, including approximately 2,041 of fee
mineral ownership, and a 37.5% working interest in approximately 22,000 gross (8,000 net) Held-by-Production
(“HBP”) acres in deeper formations including the Utica Shale. In Western New York, Norse has oil and gas lease
rights to all formations and depths on approximately 33,000 acres.
Net Working Interest Acres Central New York Western New York Company Total
All Depths/Formations 89,000 33,000 122,000
Deep Rights Retained (Net) 8,000 8,000
Company Total 97,000 33,000 130,000
Project Portfolio
The Company has a diversified portfolio of oil and gas resources:
Western New York Marcellus shale 50-75 feet thick, expected to contain liquids-rich gas, characterized as ‘wet gas’
by Schlumberger, hence expected to have a condensate and NGL stream in addition to a gas stream
Western New York Upper Devonian shale (Rhinestreet, Middlesex, Geneseo) 525-725 feet thick also expected to
contain wet gas; Range Resources reported 6.6 MMcfed average from two Upper Devonian wells in late 2012 in
Pennsylvania
Western New York Utica shale 320-550 feet thick, characterized as dry gas by Schlumberger, occurring at optimal
drilling depths of between 6,000 and 8,500 feet
Central New York Utica shale 850-1100 feet thick, containing dry gas and the prolific Point Pleasant formation that
underlies much of the acreage at an optimal drilling depth of between 5,000 to 10,000 feet
Central New York Marcellus shale 120-300 feet thick, containing dry gas, extensively proven by industry in nearby
states Pennsylvania and Ohio
The Company expects to benefit from the development of its assets. At current NYMEX gas prices of
approximately USD 4.00 per Mcf, the Company’s key Marcellus and Utica projects in Western New York and
Central New York are expected to have attractive economics.
6. FIRST QUARTER REPORT 2013
Page 6
Resource Growth
The growth in contingent resources from 880 net MMBOE at year-end 2011 to 951 net MMBOE at December 31,
2012 occurred inclusive of 2011/2012 divestments. The large volume of contingent resources is summarized in
the following chart.
The mix of ‘wet’ gas, dry gas, geography, and stacked pay provides capital project flexibility, and risk and
economic differentiation.
Regional Shale Activity
Shell and Williams have signed an agreement to create Three Rivers Midstream JV, which will provide gas
gathering and processing for northwest Pennsylvania (PA). This JV will include the natural gas liquid separation
as well as the routing of Marcellus and Utica liquids through the proposed Bluegrass pipeline to the Gulf Coast
and export markets.
Chesapeake has announced two large asset sales in Pennsylvania. The first sale to Southwestern Energy is
162,000 acres in northwestern PA, of which 51,000 acres are in the prolific Susquehanna County. The second
asset sale was to EQT in their Marcellus development area of southwestern PA. This agreement included 99,000
acres and 10 Marcellus wells. Of the 99,000 acres EQT has reported that 25,000 core acres are estimated at
USD 2,400 per acre.
XTO has applied for 3 more Marcellus horizontal well permits in the Central New York area. These are just a few
miles from Norse’s Broome county acreage and bring the total up to 5 permits from XTO in the last six months.
Cabot has drilled 2 new wells in Susquehanna County that are about a 10 mile step out from the initial
development area. IP for these new step out wells are ~16 & ~22 Mmcfd.
Range Resources has drilled two significant Marcellus wells in the northeastern PA area with ~15 Mmcfd average
IP.
Rex completed 2 wells in the super rich area of western PA with ~550 Blpd and 2.5 Mmcfd average production
The above developments and results are very encouraging for Norse’s Marcellus and Utica plays in Central and
Western New York.
Regulatory
SGEIS
The Supplemental Generic Environmental Impact Statement (“SGEIS”) is currently being developed by the
NYDEC. SGEIS has been in development in New York State since 2008. The SGEIS will be the rule making
authority which may or may not allow HVHF of shale formations in New York State. The regulations have been
delayed by a combination of study by the NYDEC and opposition by those against high volume hydraulic
fracturing of shale formations. In September of 2012, further comments were sought including input from the New
7. FIRST QUARTER REPORT 2013
Page 7
York State Health Department on potential health impacts. The Health Department input is still pending and
therefore the Company cannot predict when the final regulations will be issued.
The NYDEC is the governing and permitting authority for drilling, completion, production and eventual plugging
regulations in New York as granted under New York State Environmental Conservation Law Article 23. The
provisions of Article 23 supersede all local laws or ordinances relating to the regulation of oil and gas, except for
local government jurisdiction over local roads or the rights of local governments under the real property tax law.
However, in several court decisions in New York over the past year, most recently in the Appellate Division of the
State Supreme Court, the right of local municipalities to use zoning rules to limit or ban drilling activities has been
affirmed. Norse has had strong local support and to date local bans on drilling have had minimal impact in our
areas of historic operation and over our acreage position It is anticipated that the Appellate Division's recent
decision will be appealed to the New York Court of Appeals, the highest court in the state.
8. FIRST QUARTER REPORT 2013
Page 8
OUTLOOK
Henry Hub natural gas spot prices are around USD 4.25 per Million BTU, consistent with the U. S. Energy
Information Administration (EIA) Early Release Annual Energy Outlook 2013. The resurgence of gas prices
comes after historic ten-year lows just a year or so ago, in April 2012. Oil prices remain steadily high, hovering
between WTI USD 95 and 100 per bbl. Short-term, the EIA forecasts gas prices to remain around USD 4 per
Million BTU, and in the longer term to rise to as high as USD 6-8 per Million BTU. The EIA forecasts long-term oil
prices to steadily rise. The Company’s wet and dry gas projects are expected to be economically attractive at
current and EIA forecast prices.
Having secured funding for its US subsidiaries, and its Norwegian parent, the Company has an approximately 4-5
month window to conclude additional assets sales and/or raise additional debt and/or equity. Without additional
financing, the Company risks running out of cash within 3Q 2013. The Company also has significantly reduced
debt, compared with a debt of almost USD 90 Million at the start of 2012. The goal is to use the proceeds from
any additional financing to fund operations and pay off US creditors, including the DIP loan, obtain US court
approval to exit US Chapter 11 bankruptcy, and provide a longer (~12-24-month) operating runway. The
Company expects that this additional timeframe would be sufficient for the SGEIS to be issued, although there are
no guarantees that this would happen.
Issuance of the final SGEIS and initiation of permitting of HVHF wells in New York are expected to increase the
interest of other oil and gas production companies, midstream natural gas transmission companies and others in
the potential acquisition of certain of the company’s assets. Issuance is also likely to significantly enhance the
Company’s ability to attract an industrial partner or partners interested in long-term joint ventures to appraise and
monetize the Company’s certified oil and gas resources. An outcome of the SGEIS process may also be further
delays or a ban of HVHF in New York State. Any such outcome will further inhibit the Company from developing
its assets and may negatively affect the Company’s ability to divest all or parts of its assets.
9. FIRST QUARTER REPORT 2013
Page 9
Going Concern Assumption
The first quarter 2013 financial statements have been prepared pursuant to the going concern assumption, in
accordance with Section 3-3a of the Norwegian Accounting Act. However, as described above under “Outlook”
and “Cash and Liquidity”, the Company’s continued operations are dependent on the successful resolution of the
financial challenges facing the Company. For further information please refer to note 1.
Risk Factors
There are numerous risk factors that should be reviewed by an investor in Norse Energy. The list below
summarizes many of the major risk factors the Company faces but it is not inclusive of every risk. Financial risk is
managed under policies approved by the Board of Directors.
Government Regulation
Norse Energy owns and leases mineral rights in New York State. At present, the New York State government
does not issue permits allowing large volume hydraulic fracturing. The Company’s large resources in the Upper
Devonian, Marcellus, and Utica shale formations cannot be developed economically until this ban is lifted. On
February 12 2013, the New York Department of Environmental Conservation (NYDEC) was advised by the New
York Department of Health (NYDOH) that they would need a few more weeks to complete their health review of
the proposed SGEIS. Issue of the final SGEIS is contingent on a determination that the SGEIS has adequately
addressed health concerns. Nevertheless, NYDEC’s commissioner has gone on record as saying “this does not
mean that the issuance of High Volume Hydraulic Fracturing (“HVHF”) would be delayed; DEC can accept and
process HVHF permit applications ten days after issuance of the SGEIS”. The Company continues to expect final
issuance of the SGEIS that would allow HVHF of horizontal wells in 2013, and permitting to occur shortly
thereafter, although there is no guarantee that this timing will occur.
NEC 07 Bond and Other Interest-Bearing Debt
As a result of the NEC USA and NEHI US Chapter 11 filings, the Company is now in default with respect to the
NEC 07 bond loan. The Company’s interest-bearing debt agreements are also in default due to non-payment of
interest. There is a risk that debt holders could choose to accelerate their loan that in turn would result in a total
restructuring of the balance sheet. However, the Company announced a restructuring agreement on 25 April that
was approved at the EGM on 31 May, which would provide for: (i) the funding of NOK 7.1 million in a new
convertible loan to the Company (the “Convertible Loan”), (ii) conversion of certain unpaid interest under the 5 per
cent NEC Convertible Callable Bond Issue 2012/2015 (the “Bond Loan”) into equity in the Company, (iii) certain
amendments to the Bond Loan, including a conversion of the NOK equivalent of minimum USD 6 million and
maximum USD 15 million of the principal amount of the Bond Loan into equity in the Company , (iv) a conversion
of the entire outstanding principal, totaling NOK 21.5 million, of the existing convertible loans into equity in the
Company and waiver of accrued interest thereon, (vii) issue of warrants by the Company to the management ,
and (v) a rights offering of new shares in the Company with gross proceeds of up to the NOK equivalent of USD
10 million.
Liquidity
Financing and liquidity risk arises from not having the necessary resources from current operations available to
fund current operations and meet maturing debt liabilities. Failure to maintain liquidity could also have an impact
on the Company’s financial performance through higher interest rates or possibly even forced liquidation.
The Company has been actively pursuing the sales of assets to fund operations and reduce debt. Additional
capital is required to fund current operations. If the asset sales are unsuccessful or not timely, the Company may
seek refinancing in the capital markets which could include both debt and equity alternatives. A failure to obtain
required financing in time to meet the Company’s debt and other liabilities will materially adversely affect the
Company’s business, operations and financial condition. Please also refer to sections “Outlook”, “Cash and
Liquidity” and “Going Concern Assumption”.
Natural Gas Price
Natural gas is an energy commodity. Substantial or prolonged decline in gas prices could have a material adverse
effect on the value of our leased and owned acreage and the Company’s financial condition. Future prices cannot
be predicted with any degree of certainty.
Exploration and Development Cost & Reserve Volume
Drilling costs and well completion costs are often uncertain due to site-specific drilling conditions. In order to
explore and produce in new areas of the Norse Energy acreage, gathering facilities will need to be installed or
expanded. The Company has no history of drilling horizontal shale wells with high volume hydraulic fracturing.
However, the technology is readily available from drilling subcontractors which the Company can employ.
10. FIRST QUARTER REPORT 2013
Page 1 0
Competition
There is competition from other oil and gas companies in all areas of our operations. Some of those companies
are much larger, better integrated and have organizational and financial strength enabling them to invest where
Norse Energy might be limited by its human and financial resources. The Company must compete for drilling
equipment, pipeline equipment, services, and for the acquisition and extension of its acreage position.
Lease Expiration
Norse Energy’s leased acreage has fixed expiration dates. The Company exercised the right of Force Majeure
provided in its lease agreements, which should extend the duration of the leases affected by the time required to
finalize the regulations in the state of New York. In the event the Force Majeure provision in the leases is
successfully challenged, the original lease expiration dates will prevail.
Currency Risk and Interest
The Company’s functional currency is USD. All of the Company’s operations and most of its cash flows are in
USD. The Company has a small amount of NOK denominated liabilities and incurs a relatively small amount of its
operating expenses in NOK for its corporate office in Norway.
11. FIRST QUARTER REPORT 2013
Page 1 1
INTERIM CONDENSED CONSOLIDATED
FINANCIAL STATEMENTS
Condensed Consolidated Statement of Comprehensive Income
31 March 31 March
(in USD thousands, except earnings per share) Note 2013 2012
REVENUES AND OTHER INCOME
Oil and gas revenue 30 37
Fair value adjustments and other income 8 3
Total revenues and other income 38 40
OPERATING EXPENSES
Production expenses 27 27
Exploration and dry-hole expenses 4 406 657
General and administrative expenses 1,500 3,260
EBITDA (1,895) (3,904)
Depreciation 5 50 148
Impairment - -
Total operating expenses 1,983 4,092
EBIT - Net operating loss (1,945) (4,052)
FINANCIAL ITEMS
Net interest expense (673) (2,562)
Net foreign exchange gain (loss) 78 (116)
Loss on warrants (4,870) (720)
Other financial expenses (50) 3,580
Net financial items (5,515) 182
Loss before tax (7,460) (3,870)
Income tax benefit (expense) - -
Net loss from continuing operations (7,460) (3,870)
Net income (loss) from discontinued operations, net of tax 3 - 2,045
Net loss (7,460) (1,825)
Other comprehensive loss (net of tax) - -
Total comprehensive loss (7,460) (1,825)
Net loss attributable to:
Shareholders of the parent company (7,460) (1,825)
Total (7,460) (1,825)
Total comprehensive loss attributable to:
Shareholders of the parents company (7,460) (1,825)
Non-controlling interests - -
Total (7,460) (1,825)
Basic and diluted earnings per share from continuing operations (0.07) (0.00)
Basic and diluted earnings per share from discontinued operations (2)
- -
For the three months ended,
(1) For comparative purposes, the financial results of the Herkimer assets (only applicable to 2012) are shown as discontinued
operations.
12. FIRST QUARTER REPORT 2013
Page 1 2
Condensed Consolidated Statement of Financial Position
31 March At 31 December
(in USD thousands) Note 2013 2012
ASSETS
Non-current assets
License interests and exploration assets 4 7,664 7,664
Goodwill and other intangible assets - -
Total intangible assets 7,664 7,664
Production assets
Pipelines and Gathering system
Properties and field investments
Field investments and equipment - -
Other fixed assets 5 141 200
Total properties and field investments 141 200
Other non-current assets 50 52
Total non-current assets 7,855 7,916
Current assets
Accounts receivable and other short-term assets 403 464
Cash and cash equivalents 115 862
Total current assets 518 1,326
TOTAL ASSETS 8,373 9,242
-
EQUITY AND LIABILITIES
Equity
Share capital 21,713 21,713
Share premium - -
Treasury shares (14) (14)
Other paid in capital - -
Total paid-in equity 21,699 21,699
Other equity (46,836) (39,703)
Total equity (25,137) (18,004)
Non-current liabilities
Long-term interest-bearing debt - -
Asset retirement obligations 57 57
Other non-current liabilities 166 166
Total non-current liabilities 223 223
Current liabilities
Short-term interest-bearing debt 7 20,596 20,339
Accounts payable and accrued liabilties 7,580 6,436
Other current liabilities 5,111 248
Total current liabilities 33,287 27,023
TOTAL EQUITY AND LIABILITIES 8,373 9,242
13. FIRST QUARTER REPORT 2013
Page 1 3
Condensed Statement of Changes in Equity
USD thousands
Attributable to
parent
shareholders
Non-controlling
interests Total
Attributable to
parent
shareholders
Non-controlling
interests Total
Opening balance, January1 (18,004) - (18,004) (26,456) - (26,456)
Net income/(loss) for the period (7,460) - (7,460) (1,825) - (1,825)
Reclassification adjustments relating to discontinued foreign operations - - - - - -
Exchange differences arising from translation of foreign operations - - - - - -
Other changes - - - - - -
Total comprehensive income/(loss) for the period (7,460) - (7,460) (1,825) - (1,825)
Net change from demerger of NEdB - - - - - -
Proceeds from issuance of shares exchanged for debt - - - 16,343 - 16,343
Increase in non-controlling interests* - - - - - -
Employee share options 327 - 327 40 - 40
Closing balance period end (25,137) - (25,137) (11,899) - (11,899)
YTD 2013 YTD 2012
14. FIRST QUARTER REPORT 2013
Page 1 4
Condensed Consolidated Statement of Cash Flows
March 31 March
(in USD thousands) Note 2013 2012
OPERATING ACTIVITIES
Net loss (7,460) (1,825)
Adjustments to reconcile net loss to cash flows used in operating activities:
(Income) loss from discontinued operations 3 - (2,045)
Depreciation 5 51 148
Investments in other assets - (1,000)
Market adjustment, warrants, options and shares 4,870 720
(Gain) loss on disposal of assets - (194)
Gain on extinguishment of debt - (4,263)
Interest income - (46)
Interest expense 673 2,608
Change in deferred taxes -
Movements in working capital:
Change in accounts receivable and other short-term assets 27 (85)
Change in accounts payable and other short-term liabilities 702 349
FX gain/loss (78)
Change in other assets and liabilities and employee options 865
Other adjustments - (872)
Cash flows used in operating activities (350) (6,505)
INVESTING ACTIVTIES
Proceeds from sale of assets (395) 21,783
Proceeds from sale of mid-stream assets - -
Purchase of short-term investment - -
Proceeds from sale of short-term investment - -
Investment in fixed assets 5 - (241)
Cash flows used in investing activities (395) 21,542
FINANCING ACTIVITIES
Proceeds from issuance of shares, net - -
Net interest received (paid) - (2,868)
Repayment of debt - (10,750)
Cash flows used in financing activities - (13,618)
Effects of foreign currency on cash balances (2) 17
Net cash provided by (used in) discontinued operations 3 - 1,780
Change in cash and cash equivalents during the period (747) 3,216
Cash and cash equivalents at the beginning of the period 862 3,955
Cash and cash equivalents and the end of the period 115 7,171
For the three months ended
15. FIRST QUARTER REPORT 2013
Page 1 5
NOTES TO INTERIM CONDENSED
CONSOLIDATED FINANCIAL
STATEMENTS
Note 1. Organization and basis of preparation
General information and organization
Norse Energy Corp. ASA is a public limited liability company incorporated and domiciled in Norway. The address
of the main office is Munkedamsveien 35, 3rd floor, 0250 Oslo, Norway. The principal activity of Norse Energy
Corp. ASA and its subsidiaries is the acquisition, exploration, and development of oil and natural gas properties in
the United States.
The Company's shares are traded on the Oslo Stock Exchange under the ticker symbol NEC and in the United
States of America under the ticker symbol NSEEY.
The interim financial statements for the first quarter of 2013 were authorized for issue by the Board of Directors on
31 May 2013.
Basis of preparation
The consolidated financial statements for 2012 and 2013 were prepared in accordance with International
Financial Reporting Standards (IFRS) as adopted by the EU and the Norwegian accounting act. These interim
financial statements are prepared in accordance with International Accounting Standard 34 Interim Financial
reporting as issued by the International Accounting Standards Board (IASB). The accounting policies and
methods of computation followed in the interim financial statements are the same as compared with the most
recent annual financial statements. The interim financial statements have not been audited or subject to a review.
The interim financial statements do not include all of the information and footnotes required by IFRS for a
complete set of financial statements and should be read in conjunction with the consolidated annual financial
statements for 2012. The annual financial statements for 2012 are available at www.norseenergycorp.com.
On 16 May 2012, the Company completed the sale of its operated production, ~22,000 held by production
(“HBP”) and owned acres, the associated natural gas gathering system, and pipeline rights of way in Central New
York as further described in Note 2. As a consequence of the sale, the results from operations associated with the
assets are presented on a separate line of the Statement of Comprehensive Income and Statement of Cash
Flows as discontinued operations.
All references herein to as to number of shares, number of shares issuable upon exercise of options, warrants, or
conversion of debt instruments and associated exercise or conversion prices reflect the 10-1 reverse stock split
announced by the Company on May 29, 2012.
Going Concern
The first quarter of 2013 financial statements have been prepared pursuant to the going concern assumption, in
accordance with section 3-3 of the Norwegian Accounting Act. This assumption was made based on the financial
position of the Company at the balance sheet date of this report.
The company faces challenges related to liquidity and debt covenant compliance as of 31 December 2012. The
Company’s cash balance was approximately USD 115 thousand on 31 March 2013.
As a result of the financings discussed in Note 10 (Subsequent Events), the Company's current cash position is
sufficient to finance operations into the third quarter 2013. The Company has sold substantially all of its cash flow
generating assets to pay down indebtedness. The cash flow generated from remaining operations is negligible
and insufficient for the Company to meet its obligations for its continued operations.
In connection with the Bradford litigation, in late November 2012 a New York court denied a motion for summary
judgment filed by Bradford and directed the parties to establish an escrow account into which Norse will be
required to deposit USD 7.65 Million.
In December 2012, the Company announced that NEC USA and NEHI filed voluntary petitions for Chapter 11
protection and re-organization under the United States Bankruptcy Code. The Bradford Drilling Associates LP
litigation, including the escrow obligation, was stayed by NEC USA’s voluntary petition for Chapter 11 bankruptcy
protection, as should any other litigation matters involving NEC USA and NEHI during the pendency of the
Chapter 11 process.
As of 31 March 2013 the Company is in default in respect to all of its interest bearing debt. The Company has
failed to pay scheduled interest as to all of the debt instruments, triggering an event of default. Furthermore, the
filing of Chapter 11 Bankruptcy by the US subsidiaries is a breach of covenants for the NEC 07 USD 21 million
bond loan, an additional event of default.
16. FIRST QUARTER REPORT 2013
Page 1 6
Since trigerring these events of default, the Company has been in negotiations with its debt holders as to a
restructuring of the existing debt and possible new capital infusions, in the form of debt and possibly new equity.
A tentative agreement has been reached and and is discussed in the Note 10. No guarantees can be given that
the proposed restructuring will be finally completed, or that a completed refinancing will be sufficient to cover the
Company’s needs. The Company depends on a successful completion of the proposed restructuring to avoid its
Norwegian parent declaring bankruptcy.
In order to address the company's liquidity requirements going forward, the following alternatives are under
consideration:
- additional asset sales
- issuance of additional equity
- issuance of additional debt
- further cost reduction measures
The New York State Department of Environmental Conservation (DEC) has been directed by the Governor to
draft the Supplemental Generic Environmental Impact Statement (SGEIS), under which permits for high volume
hydraulic fracturing (HVHF") would be issued by the DEC. No HVHF permits may be issued until the the final
Supplemental Generic Environmental Impact Statement is released. The process of developing the SGEIS has
been ongoing since 2008 and timing of the final SGEIS remains uncertain. The Company is defending lease
expiration through excersising the force majeure provisions in the lease contracts. There is no guarantee the
Company will prevail its force majeure claim.
A positive outcome of the regulatory process could enable Norse to explore and drill the Marcellus and Utica
formations in New York State on its own or with partners in industry joint ventures, in which partners may provide
operating expertise and/or capital contributions to the development of defined acreage. The issuance of final
regulations is also likely to increase the interest of other natural gas production companies and/or midstream
natural gas transmission companies in the potential acquisition of certain of the company’s assets if they were to
be offered for sale. Regardless of the outcome of the SGEIS, there can be no guarantee that the Company is able
to finance development of the acreages, or to enter into transactions to divest parts or all of its acreage.
As described above the Company’s continued operation is dependent on the successful outcome of the financial
and regulatory challenges facing the Company. The financial statements do not include any impairment charges,
provisions or other adjustments likely to occur if assets are sold in a distressed situation, if the Company is not
successful in defending the force majeure provisions in the leases to allow for extension of the leases, if the
drilling permits are not issued in a timely manner or the Company is liquidated.
Note 2. Sale of Herkimer assets
On 15 March 2012, the Company announced the USD 37 million asset sale. Conveyed assets included
substantially all of the Company’s producing wells, approximately 23,000 held by production (“HBP”), or owned
acres, the associated natural gas gathering system, and pipeline rights of way in Central New York. Norse retains
a 37.5% working interest in all deep formations, including the Utica Shale on the conveyed acres. The buyer also
received a three year warrant to purchase 8.1 million Company shares (post 10-1 reverse split) at a strike price of
NOK 4.00 per share. The transaction was closed on 16 May 2012.
The buyer was EmKey Resources, LLC, a private company, led and partially owned by Øivind Risberg at the time
of the sale. Mr. Risberg was a Norse board member at the time of the sale and former Norse Energy CEO. As
part of this transaction, EmKey has committed to construct a new pipeline system in Central New York capable of
transporting at least 90,000 Mcf/day for 15 years once Norse so nominates.
A loss of USD 36.4 million was recorded in the fourth quarter of 2011 in the form of impairment. In 2012 an
additional loss of USD 528 thousand was recorded. The results from operations associated with the assets are
presented on a separate line of the Statement of Comprehensive Income and Statement of Cash Flows as
discontinued operations. Adjustments to assets and/or liabilities related to the final settlement will affect the cash
proceeds and the gain/loss calculated below for periods beyond this balance sheet date.
17. FIRST QUARTER REPORT 2013
Page 1 7
Note 3. Discontinued operations
As a result of the sale of the Herkimer assets on finalised on 16 May 2012, the Company's Herkimer assets are
considered discontinued operations in accordance with IFRS 5. The tables presented below show the results of
discontinued operations, for all comparative periods presented in this report.
Note 4. Exploration costs
(in USD thousands) Note Total
Purchase price 37,000
Purchase price and closing adjustments (998)
Commissions & other (1,152)
Funds held in escrow (440)
Net proceeds from sale 34,410
Less: net assets sold (33,172)
Warrants issued as a condition of sale 7 (1,382)
Firm transportation reimbursement (384)
Gain/(loss) on sale (528)
Statement of Comprehensive Income
31 March 31 March
(in USD thousands) 2012 2012
Revenues - 2,699
Expenses - 654
EBITDA - 2,045
Depreciation - -
Impairment - -
EBIT - 2,045
Financial income (expense) - -
Net foreign exchange loss - -
Net income (loss) before tax - 2,045
Income tax benefit -
Net income (loss) - 2,045
Loss on sale of assets - -
Reclassification adjustments relating to discontinued foreign operations - -
Gain on demerger - -
Total net income (loss) from discontinued operations - 2,045
Statement of Cash Flows
For the three months ended,
31 March 31 March
(in USD thousands) 2013 2012
Net cash provided by (used in) operating activities - 1,862
Net cash provided by (used in) investing activities - (82)
Net cash provided by (used in) financing activities - -
Effects of foreign currency on cash balances - -
For the three months ended,
18. FIRST QUARTER REPORT 2013
Page 1 8
Note 5. Property, plant, and equipment and intangible assets
Note 6. Interest-bearing debt
Events of Default
For the three months ended,
31 March 31 March
(in USD thousands) 2013 2012
Seismic acquisitions, G&G costs, and general exploration costs 406 657
Dry-hole costs - -
Other exploration costs expensed - -
Total exploration costs from continuing operations 406 657
Total exploration costs from discontinued operations - -
Exploration expenses capitalized during the period - -
Total exploration investments during the period 406 657
(in USD thousands)
Licenses and
exploration
assets
Other fixed
assets Total
Acquisition cost at 1 January 2013 7,664 2,217 9,881
Investments in continuing operations - - -
Investments in discontinued operations - - -
Disposals - - -
-
Acquisition cost at 31 March 2013 7,664 2,217 9,881
-
Accumulated depreciation/impairment at 1 January 2013 - (2,026) (2,026)
Depreciation/impairment from continuing operations - - -
Disposals - - -
-
Accumulated depreciation/impairment at 31 March 2013 - (2,026) (2,026)
-
-
Net carrying value at 31 March 2013 7,664 191 7,855
Below is a summary of the Company's interest bearing debt as of 31 March 2013.
Nominal Carrying Interest Effective Maturity Conversion Conversion
Instrument Type Amount Amount* Rate Date Date Price (USD) Price (NOK)
JH Farstad Convertible Loan 351 124 10.00% Fixed 08/16/12 08/16/15 0.40 2.34**
Tyrholm & Farstad AS Convertible Loan 175 65 10.00% Fixed 08/13/12 08/13/15 0.42 2.43**
SAF Invest AS Convertible Loan 351 129 10.00% Fixed 08/13/12 08/13/15 0.42 2.43**
Megaron AS Convertible Loan 2,105 762 10.00% Fixed 07/06/12 07/06/15 0.40 2.31**
Mabe Invest AS Convertible Loan 263 91 10.00% Fixed 07/10/12 07/10/15 0.43 2.49**
Mouseless Invest AS Convertible Loan 263 87 10.00% Fixed 07/11/12 07/11/15 0.43 2.49**
MP Pensjon PK Invest AS Convertible Loan 263 88 10.00% Fixed 07/12/12 07/12/15 0.43 2.51**
NEC07 Bond Loan Convertible Bond 21,000 18,702 5.00% Fixed 04/02/12 04/02/15 0.62 3.63***
(in USD thousands, except conversion price)
**The exercise price is subject to adjustment to match the issue price in any private placement or rights issue prior to 1 July 2015.
***The exercise price is subject to adjustment inter alia if a private placement is executed at a price per share of 95% or less of the market price per share. In such event, the conversion price shall be adjusted by
multiplying the conversion price in force by a fraction determined by dividing; (a) the outstanding issued shares plus (b) the number of shares the consideration for the new issued share would purchase at the current
market price; by (a) the outstanding issued shares plus (c) the actual number of new share.
*The loans are discounted for their convertible features, which are carried separately on the balance sheet at fair value with changes in fair value recognized in profit or loss.
(NEC07 conversion feature is recorded directly to equity at initial fair value). The loans are carried at amortized cost and amortized to face value over their contractual lives using the effective interest method.
Below are the contractual maturities of the Company's bond debt including estimated interest of 31 March 2013.
(in USD thousands) Interest Principal Total
0-3
years
JH Farstad 105 351 456 456
Tyrholm & Farstad AS 53 175 228 228
SAF Invest AS 105 351 456 456
Megaron AS 632 2,105 2,737 2,737
Mabe Invest AS 79 263 342 342
Mouseless Invest AS 79 263 342 342
MP Pensjon PK Invest AS 79 263 342 342
NEC07 Bond Loan 2,625 21,000 23,625 23,625
Total 3,757 24,772 28,529 28,529
19. FIRST QUARTER REPORT 2013
Page 1 9
As of 31 March 2013 the Company is in default in respect to all of its interest bearing debt. The Company has
failed to pay scheduled interest as to all of the debt instruments, triggering an event of default. Furthermore, the
filing of Chapter 11 Bankruptcy by the US subsidiaries is a breach of covenants for the NEC 07 USD 21 million
bond loan, an additional event of default.
As of this date, the Company’s Norwegian parent NEC ASA and certain of its bondholders, convertible lenders
and shareholders reached a restructuring agreement that will (i) facilitate a comprehensive restructuring of the
group's balance sheet and (ii) provide NOK 7.1 Million of new funding for NEC ASA. See Note 10.
Bond Covenants
As noted above, as of 31 December 2012 the Company is not in compliance with all bond and loan covenants.
Discussions were held with the Company’s debtholders and an agreement has been reached subsequent to 31
March 2013 (see discussion in Note 10).
Note 7. Warrants & Loan Conversion Features
NEC F Warrants
On 16 May 2012, the extraordinary general meeting resolved that the Company issue a total of 8,100,000
warrants, each warrant giving the warrant holder the right to subscribe for one (1) share in the Company
exercisable at NOK 4.00 per share. The Warrants were issued to the buyers of the Herkimer assets, EmKey
Resources LLC. As of the date of this report no warrants have been redeemed.
NEC 06 Warrants
On 30 March 2012, the extraordinary general meeting resolved that the Company issue a total of 750,000
warrants, each Warrant giving the warrant holder, the right to subscribe for one (1) share in the Company
exercisable at 2.80 per share. The warrants were issued to the holders of bonds in the NEC06 bond loans on 2
April 2012. The warrants expired in April 2013.
NEC K Warrants
On 26 January 2010, the extraordinary general meeting resolved that the Company issue a total of 5,543,000
warrants, each warrant giving the warrant holder, the right to subscribe for one (1) share in the Company
exercisable at NOK 22.10 per share. The warrants were issued to the subscribers to NEC02, NEC03, NEC04
and NEC05. The warrants are listed on the OSE under the ticker code NEC K. As of the date of this report no
warrants have been redeemed.
The NEC K warrants are measured at fair value with reference to the quoted price of the warrants on the OSE.
The NEC 06 and NEC F warrants are not publically traded. Fair value has been estimated by a third party
provider using alternative valuation techniques. The warrants are not considered to have a dilutive effect on
earnings per share as they were out-of-the-money compared to the average price per share in 2011 and 2012.
As of 31 December 2012, 14,393,000 warrants are outstanding.
Conversion Features of Convertible Bonds and Loans
On 2 April 2012 the Company issued convertible bond NEC07 with principal amount minimum USD 21 settled by
conversion of principal amount of NEC02/04/05 bonds (pro rata). The convertible debt has a strike of NOK 3.63
per share (subject to adjustment clauses), carries a 5% coupon, is 3 years in duration, contains a call provision,
and is secured by the shares in the Company's wholly owned subsidiary, Norse Energy Holding Inc.
The NEC 07 exercise price is subject to adjustment inter alia if a private placement is executed at a price per
share of 95% or less of the market price per share. In such event, the conversion price shall be adjusted by
multiplying the conversion price in force by a fraction determined by dividing; (a) the outstanding issued shares
plus (b) the number of shares the consideration for the new issued share would purchase at the current market
price; by (a) the outstanding issued shares plus (c) the actual number of new share.
Fair value has been estimated by a third party provider using alternative valuation techniques. Due to the specific
nature of the NEC07 bond loan IAS 32 requires that the initial value of the conversion feature is allocated directly
to equity.
In the third quarter of 2012 the Company announced that it had executed 7 convertible loan agreements for total
loan proceeds of NOK 21.5 million. The convertible loans are unsecured, carry a 10% coupon, and are 3 years in
duration. The loans may be converted into ordinary shares in Norse Energy at anytime during the life of the loans
commencing on the first calendar day of the fourth month following the Funding Date. The conversion prices are
the lesser of the volume weighted average trading price the five days preceding the payment day of the loan, but
are subject to adjustment to match the issue price in any private placement or rights issue prior to 1 July 2015.
IAS 39 requires that the conversion features are carried as liabilities on the balance sheet at fair value with
changes in fair value recognized in profit or loss. Fair value has been estimated by a third party provider using
alternative valuation techniques.
20. FIRST QUARTER REPORT 2013
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The conversion features are not considered to have a dilutive effect on earnings per share as they were out-of-
the-money compared to the average price per share in 2013.
Note 8. Contingent liabilities
Legal Proceedings
The Company is involved in various legal proceedings, which are disclosed in the Company’s consolidated annual
financial statements for 2012. The Company does not anticipate any liability arising from these proceedings and
therefore no accrual has been made related to these matters.
Bradford Drilling is seeking a return of USD 7.65 million of the USD 9 million that they provided to the Company
as part of a Drilling Program. The Company recently advised Bradford that approximately USD 3.3 million
remained to be allocated to the program and anticipates allocating those funds when the program resumes or as
needed to address ongoing program expenses. The Company does not anticipate any additional liability and
therefore no accrual has been made related to the lawsuit. Bradford also seeks USD 10 million in punitive
damages. In connection with the litigation, a New York court denied a motion for summary judgment filed by
Bradford and directed the parties to establish an escrow account into which Norse will be required to deposit USD
7.65 Million.
The Company announced that NEC USA and NEHI filed voluntary petitions for Chapter 11 protection and re-
organization under the United States Bankruptcy Code. The Bradford Drilling Associates LP litigation, including
the escrow obligation, was stayed by NEC USA’s voluntary petition for Chapter 11 bankruptcy protection, as
should any other litigation matters involving NEC USA and NEHI during the pendency of the Chapter 11 process.
Note 9. Debtor in Possession (“DIP”) Financing For U.S. Subsidiaries
On 20 March 2013, The Group announced that its US subsidiaries, Norse Energy Corp. USA ("NEC USA") and
Norse Energy Holdings, Inc.("NEHI"), had reached an agreement with a Norwegian-based Special Purpose
Vehicle funded by certain existing Norse Energy Corp. ("NEC ASA") lenders for a USD 3.8 million Debtor in
Possession (“DIP”) loan.
The terms of the loan provide for an interim advance of up to USD 800,000 pending entry of a final Court order
approving the DIP loan facility, with the balance to be advanced in successive draws thereafter. The loan shall
bear interest at 12% per annum payable at maturity. The loan has a maximum term of 9 months. There shall be a
6% commitment fee assessed on the unused portion of the DIP loan facility. The facility will be collateralized by
the assets of the US subsidiaries. The facility requires that the US subsidiary, Norse Energy Corp. USA, enters
into a process within 90 days of court approval of the interim advance to sell assets.
On 5 April 2013, NEC USA and NEHI filed a joint motion supporting the interim and final loan terms in order to set
a hearing date before the Court. On 10 April 2013 the hearing was held in Court before the judge assigned to the
case. The result was that an interim loan amount of USD 0.8 million was approved and a final hearing date was
Below is a summary of the Company's outstanding warrants as of 31 March 2013
Number of Issue Maturity Carrying Exercise Exercise
Description Warrants Date Date Amount* Price (USD) Price (NOK)
NEC F 8,100,000 05/16/12 05/16/15 1,541 0.70 4.00
NEC K 5,543,000 10/05/10 06/16/15 19 3.88 22.10
NEC 06 750,000 04/02/12 04/02/13 28 0.49 2.80
*in USD thousands, except conversion price
.
Below is a summary of the Company's outstanding conversion features on convertible debt as of 31 March 2013
Number of Shares Issue Maturity Exercise Exercise
if Converted Date Date
Price
(USD) Price (NOK)
JH Farstad 855,366 08/16/12 08/16/15 0.40 2.34
Tyrholm & Farstad AS 411,480 08/13/12 08/13/15 0.42 2.43
SAF Invest AS 822,960 08/13/12 08/13/15 0.42 2.43
Megaron AS 5,205,669 07/06/12 07/06/15 0.39 2.31
Mabe Invest AS 602,663 07/10/12 07/10/15 0.43 2.49
Mouseless Invest AS 602,353 07/11/12 07/11/15 0.43 2.49
MP Pensjon PK Invest AS 598,728 07/12/12 07/12/15 0.43 2.51
NEC07 Bond Loan 33,842,975 04/02/12 04/02/15 0.62 3.63
*in USD thousands, except conversion price. Carried as liability on the balance sheet at fair value with changes in fair value recognized in profit or loss.
** in USD thousands, except conversion price. Carried in equity at initial fair value.
Description
21. FIRST QUARTER REPORT 2013
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set for 29 April 2013 to decide on the total loan of USD 3.8 million. On 29 April 2013 the DIP loan was approved
in its entirety.
Note 10. Subsequent Events
Funding for Norse Energy Corp ASA
The purpose of the “DIP” financing described above will be to fund the US subsidiaries operations during the
Chapter 11 process. A successful DIP financing at the US subsidiary level is for the purpose of funding those
subsidiaries. The Norwegian parent company, Norse Energy Corp. ASA, will require a separate source of funds.
On 24 April 2013, certain of NEC ASA's bondholders, convertible lenders and shareholders reached an
agreement (the "Restructuring") that will (i) facilitate a comprehensive restructuring of the Group's balance sheet
and (ii) provide new funding for the NEC ASA entity.
The Restructuring comprises, among other things, (i) the funding of NOK 7.1 million in new Convertible Loans to
the Company, (ii) conversion of certain unpaid interest under the NEC 07 Bond Loan into equity in the Company,
(iii) certain amendments to the Bond Loan, including a conversion of the NOK equivalent of minimum USD
7,000,000 and maximum USD 15,000,000 of the principal amount of the NEC 07 Bond Loan into equity in the
Company , (iv) a conversion of the entire outstanding principal, totalling NOK 21.5 million, of the existing
convertible Loans into equity in the Company and waiver of accrued interest thereon, (vii) issue of warrants by
the Company to the Management , and (v) a rights offering of new shares in the Company with gross proceeds of
up to the NOK equivalent of USD 10,000,000.
The Restructuring is contemplated to be implemented through the following steps:
Convertible Loan:
A new secured convertible loan totaling NOK 7.1 million to the Company to be funded by existing convertible
lenders and shareholders. Principal together with interest will be payable at the maturity date which is 9 months
from the date of funding of 29 April 2013. The new convertible loan will rank pari passu with the NEC 07 Bonds
with the same security. At any time from the date falling 60 days after the EGM approving the restructuring to the
Maturity Date, the new convertible lenders shall have the right to (at one or more times) convert the principal
amount of the Convertible Loan (in whole or in part) into shares in the Company at a conversion price of NOK
0.075 per share.
Interest Conversion:
The entire amount of unpaid interest under the Bond Loan, which for the purpose of the Restructuring shall be
considered fixed at USD 1,050,000, shall be converted to equity at a conversion price of NOK 0.075 per share.
Share Capital Reduction:
A reduction of the Company’s share capital in order to reduce the par value of the shares from NOK 1.20 to NOK
0.075.
Bond Loan Conversion:
The conversion of USD 6,000,000 of the principal amount of the NEC 07 Bond Loan at a subscription price of
NOK 0.25 per share.
Shareholder Loans Conversion:
The conversion of the entire outstanding principal amounts totalling NOK 21.5 million of the existing convertible
loans at a subscription price of NOK 0.25 per share. All accrued but unpaid interest is waived.
Management Warrants:
There are contemplated 94,000,000 warrants (Norwegian: frittstående tegningsretter) to be issued by the
Company to the Management, each of which shall (on certain conditions) give the holder the right to require the
Company to issue one new share at a price of NOK 0.10.
Rights Offering:
22. FIRST QUARTER REPORT 2013
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A contemplated public offering of new shares in the Company at a subscription price of NOK 0.25 per share with
total gross proceeds of up to the NOK equivalent of USD 10,000,000 and with transferable subscription rights
granted to the Company’s shareholders as at the date of the EGM (as registered in VPS T+3 days after such
date).Up to USD 1,000,000 of the gross proceeds shall be used to cover transaction costs and for general
company purposes. Any part of gross proceeds exceeding such amount shall be used to repay the Bond Loan.
Guarantee Conversion:
A guarantee under the NEC 07 Bond Loan in which up to USD 9,000,000, less the gross proceeds in the Rights
Offering exceeding USD 1 million, will convert to equity at a subscription price of NOK 0.25 per share.
Amendments of the Bond Loan:
The remaining outstanding amounts under the Bond Loan will be subject to amended terms and conditions of the
Bond Loan agreement, such amended terms and conditions to include waiver by the bondholders to receive
interest payments from and including 16 May 2013 to and including 1 April 2014, a first priority pledge over inter-
company loans from the Company to Norse Energy Holdings, Inc. (such pledge to be shared pari passu with the
Convertible Loan), and an adjusted conversion price of NOK 0.30 per share).
23. FIRST QUARTER REPORT 2013
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GLOSSARY
Bbl One barrel of oil, equal to 42 US gallons or 159 liters
Bcf Billion cubic feet
Blpd Barrells of liquid per day
Bm
3
Billion cubic meter
BOE Barrel of oil equivalent
Btu British Thermal Units, energy needed to heat one pound of water by one degree Fahrenheit
Dth Decatherm, the approximate energy equivalent of burning 1000 cubic feet of natural gas
EBITDA Earnings (Net Income) before Interest, Taxes, Depreciation and Amortization and viewed by
many financial analysts as a short form estimate of cash from operations, although it is not a
measurement recognized in the accounting literature
EBITDAX An Oil and Gas industry term which adds back certain Exploration costs, such as the
Company’s acquisition of 3D Seismic, to EBITDA. Exploration costs, such as 3D Seismic, are
not operating expense in the sense that they vary with operational activities. They are more like
capital spending investments in that they are large expenditures which provide value to
developemnt activities across a number of years and are not likely to be recurring. The
accounting literature recognizes Exploration costs as Operating Expense which reduces
EBITDA for this type of non-recurring expense.
HBP Hold by Production means holding the future right to develop all of the acreage in all leases in
the drilling unit in all geological formations for life of the producing well.
IP Initial production
Mcf Thousand cubic feet
Mcf/d Thousand cubic feet per day
MMcf Million cubic feet
MMBBL Million barrels of oil
MMBOE Million barrels of oil equivalents
MMBtu Million British thermal units
MMm
3
Million cubic meters
NGLs Natural Gas Liquids
Spud The initial contact of a drill bit with the ground surface as the drilling of a well begins
Tcf Trillion cubic feet
TCFGE Trillion cubic feet of gas equivalent
1P Proved Reserves are those quantities of reserves, which, by analysis of geoscience and
engineering data, can be estimated with reasonable certainty to be commercially recoverable,
from a given date forward, from known reservoirs and under defined economic conditions,
operating methods, and government regulations.
2P Probable Reserves are those additional Reserves which analysis of geoscience and
engineering data indicate are less likely to be recovered than Proved Reserves but more certain
to be recovered than Possible Reserves.
3P Possible Reserves are those additional reserves which analysis of geoscience and engineering
data suggest are less likely to be recoverable than Probable Reserves.
2C Contingent Resources – those quantities of resources estimated as of a given date to be
potentially recoverable from known accumulations by application of development projects but
which are not considered to be commercially recoverable due to one or more contingencies
24. FIRST QUARTER REPORT 2013
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Disclaimer
This report does not constitute an offer to buy or sell shares or other financial instruments of Norse Energy Corp.
ASA (“Company”). This presentation contains certain statements that are, or may be deemed to be, “forward-
looking statements”, which include all statements other than statements of historical fact. Forward-looking
statements involve making certain assumptions based on the Company’s experience and perception of historical
trends, current conditions, expected future developments and other factors that are deemed appropriate under the
circumstances. Although the expectations reflected in these forward-looking statements are believed to be
reasonable, actual events or results may differ materially from those projected or implied in such forward-looking
statements due to known or unknown risks, uncertainties and other factors. These risks and uncertainties include,
among others, uncertainties in the exploration for and development and production of oil and gas, uncertainties
inherent in estimating oil and gas reserves and projecting future rates of production, uncertainties as to the
amount and timing of future capital expenditures, unpredictable changes in general economic conditions, volatility
of oil and gas prices, competitive risks, regulatory changes and other risks and uncertainties discussed in the
Company’s periodic reports. Forward-looking statements are often identified by the words “believe”,
“budget”, “potential”, “expect”, “anticipate”, “intend”, “plan” and other similar terms and phrases. Norse Energy
cautions you not to place undue reliance on these forward-looking statements, which speak only as of the date of
this report, and the Companyundertakes no obligation to update or revise any of this information.
Contact information
For further information, please contact:
J. Chris Steinhauser
Chief Financial Officer,
Norse Energy Corp. ASA
csteinhauser@norseenergy.com