Norse Energy Corp. reports that Bradford Drilling has filed a lawsuit concerning a joint venture program to drill Herkimer formation natural gas wells with Norse in central New York. The program was halted in early August 2011, as was previously advised, and has yet to resume.
Bradford Drilling is seeking a return of $7.65 million of the $9 million which they provided to the Company under the terms of the Drilling Program Agreement. The Company recently advised Bradford that approximately $3.5 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. Bradford also seeks $10 million in punitive damages. The Company is of the opinion that it has acted in conformance with its contractual obligations and does not anticipate any liability beyond its obligation to disburse funds in accordance with the terms of the Drilling Program Agreement.