Escalera Resources Co. (fka ESCRQ)

[ash111]

ESCR DD for new investors,VALUE estimations:

1. Shareholders could win bigtime. from $1.5M cap to at least $42M cap if the deal will be completed. "On June 16, 2015, the Company and its wholly-owned subsidiary Warren E&P, Inc., entered into non-exclusive purchase and sale agreements
with Escalera Resources, Co., pursuant to which Warren will sell all of its interests in its shallow depth coal bed methane assets, which are
located in the Atlantic Rim area of the Washakie Basin in Carbon County, Wyoming, appurtenant midstream pipeline assets, and an undivided
30% of its interest in certain deep rights associated with Warren’s former leases in the Atlantic Rim area, to Escalera with an effective date of
April 1, 2015. The total purchase price for these assets will be $47 million, with $42 million payable in cash at closing. Following consummation
of the transaction, Warren will retain 70% of the operated deep rights associated with Warren’s former leases in the Atlantic Rim area, across
68,700 gross acres, which are currently being evaluated for potential upside in a number of the deep formations present. The sale is subject to
closing conditions and adjustments, including completion of the purchaser’s financing

Almost the same value mentioned above is also shown here:

2. ESCR's value is $33m per past week 10Q(Market Cap is only $1.5m):
Total liabilities ( including St+Lt are $67m).actually the balance sheet very solid due to Total Assets/Debt ratio way over 1. $97m-$67m= $30m Net Assets. + about $3.3m in Cash.

$30m Net assets/14m o/s= $2+ PPS!.

"LIABILITIES, PREFERRED STOCK AND STOCKHOLDERS' EQUITY" "about the same as a year ago.even lower!!
http://www.otcmarkets.com/edgar/GetFilingPdf?FilingID=10863878

TOTAL ASSETS $ 97,710
TOTAL LIABILITIES 67,708

it means,NET ASSETS = $30M
Cash and cash equivalents $ 3,385


3. 10k: ESCR's proved reserves- net cash flows $ 90,112(in millions),December 31, 2014
Based on Total proved reserves 246,570 - oil
Total proved reserves 85,846,208 - Natural Gas

"We engaged an independent petroleum engineering firm, Netherland, Sewell & Associates, Inc. (“NSAI”) to prepare our
reserve estimates at December 31, 2014, 2013 and 2012. NSAI is a worldwide leader in petroleum property analysis for
industry and financial organizations, and government agencies"

"As of December 31, 2014, it had estimated proved reserves of 85.8 billion cubic feet of natural gas and 247 thousand barrels of oil; owned interests in approximately 1,200 producing wells; and had an acreage position of 112,219 net acres in natural gas prone basins primarily located in the Rocky Mountains".

Just for Comparison:
Warren market cap is $48m and they have only $4m more in cash. ESCR market cap is only $1.5m. "Warren’s cash flow from operations in the second quarter of 2015 was $7.0 million, compared to $23.9 million in the second quarter of 2014. The Company’s discretionary cash flow* was $8.1 million, compared to $22.1 million in the prior year period."

the SS much better, 14m o/s(ESCR) vs 81m