Norse Energy Corp subsidiary Norse Energy Holdings has received approval for the sale of Norse Pipeline (Norse Pipeline) and Nornew Energy Supply to Appalachian Transportation and Marketing for an estimated sale price of $20.7m.
The sale agreement, executed in February, has been approved by the New York Public Service Commission (NYPSC) on 19 May.
A total of $4.2m of sale proceeds will be used for repayment of long term debt associated with Norse Pipeline while the remaining $16.5m will be used for general corporate purposes.
The sale is expected to close on or about 31 May this year.
Norse Energy CEO Mark Dice said the company believes that midstream assets are no longer core to our exploration and production activities in central New York.
"This is part of our strategy to divest non-core assets on favorable terms and reallocate corporate resources toward our core competencies in exploration and production," Dice added.