DENVER and HOUSTON, April 3, 2014 /PRNewswire/ -- Escalera International Co. LLC, a subsidiary of Escalera Resources Co. (formerly Double Eagle Petroleum) (NASDAQ: ESCR), announced today it has signed a Memorandum of Understanding ("MOU") to enter into an Energy Joint Venture headquartered in Tirana, Albania.

The purpose of the proposed joint venture ("JV") between Escalera International Co. LLC ("ESCRI") and AOR Albanian Oil Rafinery ShA ("AOR") is to identify and acquire upstream oil and gas drilling opportunities along with related facilities and infrastructure in Albania. The JV will be owned equally by both parties and is subject to approval by both parties as well as the outcome of normal due diligence procedures conducted by both parties.

Northern Albania, which is part of the Balkans regions, is believed to have 2.7 trillion cubic feet of natural gas reserves and 198 million barrels of oil according to a survey conducted by Gustavson Associates in 2008.

Management Comments

Mr. Charles F. Chambers, Chairman and CEO of Escalera Resources Co., said: "Escalera Resources, formerly Double Eagle Petroleum, recently announced an expanded business strategy along with the name change. Escalera International Co. LLC is a significant part of the expanded strategy to grow shareholder value. This JV with Albanian Oil Rafinery ShA is the first effort to identify and acquire both upstream E&P and mid-stream facility and infrastructure assets outside of the U.S."

Mr. Eric Icsel, President of Escalera International Co. LLC, added: "Albanian Oil Rafinery is a well-established company with contacts throughout the Albanian affiliates and the oil and gas industry in Albania, making them an ideal partner for this JV. Most of Eastern Europe has a single supply of natural gas which has proven tenuous at times in recent years. Being on the leading edge of developing additional supply for the area is certainly an exciting opportunity. Both parties hope to complete due diligence early in the third quarter of this year and move forward with the JV."

Nejat Bocnak, Vice President of Business Development of Albanian Oil Rafinery ShA commented: "This alliance with Escalera is not only very meaningful for our company, but is important to the country of Albania, which furthers our investment and supports the community."

About Escalera Resources Co.

Escalera Resources Co. will have offices in Houston, Texas, Denver, Colorado and Casper, Wyoming. The Company has historically explored and developed natural gas and crude oil properties in the Rocky Mountain region. The Company currently has development activities and opportunities in Wyoming in both the Atlantic Rim and on the Pinedale Anticline. Also, exploration potential exists in its Niobrara acreage in Wyoming and Nebraska, which totals over 70,000 net acres, and in its acreage in Nevada, which totals over 6,000 net acres. The Company is actively pursuing new focus areas, including international and midstream opportunities.

Company Contact:
John Campbell, IR
(303) 794-8445
www.dble.com

 

 

 

SOURCE Escalera Resources Co.

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