Big Ideas = Bigger Opportunity EnerCom: The Oil & Gas Conference Denver, CO August 20, 2014 1 Copyright2014 Escalera Resources Co. All rights reserved. ENERCOM_Fenster_08202014
ESCALERA OVERVIEW Copyright2014 Escalera Resources Co. All rights reserved. ENERCOM_Fenster_08202014 3
Escalera Overview New management team PROVEN HISTORY Leading with a visionary, innovative and proven team of experienced professionals dedicated to the optimization of our current assets and the aggressive pursuit and ethical…
Proven Management Team Career Highlights: Charles F. Acquired over 1.4 TCF of proved natural gas reserves through Chambers corporate and asset transactions (Calpine Natural Gas and President, Rosetta Resources) CEO and Chairman…
Proven Management Team Gregory A. Whiting Clark Huffman, Ph.D. VP, Business Development VP, Operations Mr. Whiting has spent over 25 Dr. Huffman has over 30 years of years in the energy sector, with experience in petroleum a…
Proven Management Team Adam Fenster William A. Sidwell, III CFO VP, Corporate Strategy Mr. Fenster has over 20 years of financial and accounting experience Mr. Sidwell oversees corporate with companies both public and strategy…
Invest in big ideas from small companies. -Statoil Copyright2014 Escalera Resources Co. All rights reserved. ENERCOM_Fenster_08202014 8
FOCUS AND EXECUTION Copyright2014 Escalera Resources Co. All rights reserved. ENERCOM_Fenster_08202014 9
Escalera Business Strategy Strategy: NATURAL Use capital as Dials(spend and/or reinvest; GAS increase and decrease as needed) Exploit availability of low cost natural gas supplies through acquisitions Funded by equity offerings,…
Proven Execution - Wyoming Assets Escalera Production & Leasehold (NON-OP) Escalera Production & Leasehold (OP & NON-OP) Building shareholder value by owning and acquiring dry natural gas Copyright2014 Escalera Resources…
The Atlantic Rim Catalina Unit (OPERATED) Low cost producer three year average LOE of 0.92/mcf 83 gross (64 net) wells 175 total potential future drilling locations 36.4 Bcfe net proved reserves (using NYMEX forward strip pricing…
Pinedale Anticline Producing Assets (NON-OPERATED) Operated by QEP 219 producing wells in three units: Mesa A 45 wells Mesa B 140 wells Mesa C 34 wells 30 Bcfe of 2P reserves (using NYMEX forward strip pricing at 12/31/2013) (1)…
GAS TO LIQUIDS (GTL) Copyright2014 Escalera Resources Co. All rights reserved. ENERCOM_Fenster_08202014 14
Advantages of GTL Derived Diesel Delivers clear, Enables clean burning development of fuel with a high Can be used new generation Improves engine Reduces tailpipe relative cetane pure or in internal efficiency emissions number…
Why Change Natural Gas to Liquids Valuation by BTU Content Crude Oil Natural Gas Unrefined crude oil is 15.68 4.49 3.5 almost 3.5 times more valuable than per MMBtu per MMBtu natural gas Diesel from Diesel from Crude Oil…
Natural Gas to Liquids Two glasses, both filled with a clear liquid O N E W I T H WAT E R ONE WITH GTL DIESEL They look the same but This one wont run an engine This one will run an engine This one wont burn This one will burn…
Conclusion Escalera has a well-defined view of the market: Contrarian Position: Acquire dry natural gas cheaply; exploit production economically, develop as market conditions allow and identify opportunities to enhance its value…
Invest in big ideas from small companies. -Statoil Copyright2014 Escalera Resources Co. All rights reserved. ENERCOM_Fenster_08202014 19
Appendix Proved Reserves Forward NYMEX strip pricing at December 31, 2013 utilizes NYMEX pricing for the next five years, with subsequent pricing on a per mcf basis held constant and/or escalating at various rates per year to 4.00…
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