Escalara Builds Natural Gas War Chest with Atlantic Rim Purchase from Warren

摘要

Denver-based Escalara Resources Co., whose strategy is to explore and develop natural gas, is building its arsenal after buying producing wells and interests in the Atlantic Rim of Wyoming’s Washakie Basin from Warren Resources Inc. Warren, working to right its balance sheet, is selling several assets to Escalara for a total of $47 million. The assets to be sold include a 74% working stake in the Spyglass Hill Unit, a coalbed methane (CBM) gas production area in which Escalera already owns 22%. Warren also is selling its 11% stake in the Catalina Unit, which Escalara controls with an 86% interest. Also being sold are midstream gathering assets and pipeline assets that are part of the Spyglass unit.