Escalera Resources Co. Files For Bankruptcy in Denver, Colorado

On November 5, 2015, independent energy company Escalera Resources Co. (the “Debtor”) filed for Chapter 11 bankruptcy protection in Denver.According to the affidavit of the Debtor’s Chief Financing Officer Adam Fenster (the “Fenster Affidavit”), the Debtor’s operations have been focused on developing and operating natural gas wells in the State of Wyoming, particularly in the Atlantic Rim area of the eastern Washakie Basin in which it has coalbed methane reserves.  At present, the Debtor has estimated proved reserves of 65.6 Bcf (billion cubic feet) of natural gas and 134.4 MBbl (1,000 barrels of oil) of oil, for a total of 66.3 Bcfe (billion cubic feet equivalent).  Of these estimated proved reserves, 56% were proved developed and 99% were natural gas.  See Fenster Affidavit at 1-4.The Debtor’s indebtedness includes approximately $37 million owed an account of a revolving credit facility with Société Générale as Administrative Agent and lead lender plus certain lenders identified therein.  The amount owed by the Debtor on its revolver substantially exceeds the borrowing base as re-determined as of September 30, 2015. See Fenster Affidavit at 2-3.The Debtor’s bankruptcy case has been captioned In re Escalera Resources Co., Case No. 15-22395, and is pending before Judge Thomas B. McNamara.A copy of the Fenster Affidavit can be accessed here:  Download Fenster Affidavit.For further information, please contact a Thompson & Knight Bankruptcy and Restructuring Attorney. For more information on the Thompson & Knight’s Bankruptcy and Restructuring Practice, please visit www.tklaw.com/bankruptcy-and-restructuring/.