According to the company, this connection is expected to add production growth from Norse’s Herkimer field, which is estimated to yield 500 million cubic feet of gas. The Herkimer field also has the potential to access two additional interstate pipelines both feeding the New York City metropolitan area, which is 120 miles away.
Following the incurred infrastructure investment, Norse Energy’s focus is on developing the Herkimer play. The last five horizontal Herkimer wells drilled continue to yield good returns , according to Norse Energy.
Norse has previously estimated average reserves for the Herkimer at 1.2 billion cubic feet per well. The company had previously seismically identified 250 locations in the Herkimer formations with a likelihood of direct offset of another 250 locations on its 130,000-acre interest, located closer to New York City than any other producing gas fields in the US.
The company has now moved from the exploration phase to a full scale development play with all attention to convert Herkimer resources into producing reserves. The development play with access to pipeline is expected to provide the company with additional financial flexibility going forward.
