Double Eagle Petroleum Co. (NASDAQ: DBLE) reports that Charles F. Chambers has been appointed chairman and CEO, effective April 1, succeeding Richard D. Dole who will become vice chairman of the board. As part of the transition, the company is changing its name to Escalera Resources Co.
Additionally, the company also announced a private placement of its common stock for $4,825,000, the net proceeds of which will be used to fund working capital needs and for other general corporate purposes.
Chambers has spent 40 years in the upstream oil and gas business. From March 2012 to November 2013, he was the managing director of Castleton Commodities International LLC's oil and gas business, responsible for managing upstream business activities with a focus on building a domestic natural gas portfolio. From 2005 to 2008, he held various positions at Rosetta Resources Inc., including CEO. Prior to Rosetta Resources, Chambers served as executive vice president of Calpine Corp. and managed its acquisition efforts. Before joining Calpine, he held positions at C&K Petroleum, Chambers Oil & Gas, Sheridan Energy, and Grand Gulf Production. In addition to serving as CEO, he will also serve as chairman of the company's board of directors.
Dole has agreed to work with the company on transition activities and new project development. He will become vice chairman of the board, will be a consultant to the company and will assist the CEO on transition matters and the company's acquisition activities.
Dr. Erkan “Eric” Icsel has been appointed president of Escalera International Co. LLC, effective April 1, to focus on upstream and midstream international opportunities, first in Central Asia and later in Africa.
Dr. Icsel has over 41 years of development experience in international energy projects. He has successfully negotiated contracts, concessions, and corporate privileges at the highest levels of government and industry in countries such as Turkey, Russia, Kazakhstan, Azerbaijan, Kyrgyzstan, and several African nations.
Chambers, Dole, and Dr. Icsel will office in Houston, and the company's finance, administration, and Rocky Mountain operations will remain in Denver.
In connection with Chambers' appointment as CEO, the company is changing its name to Escalera Resources Co. The new trading symbol for its common stock will be ESCR, and the company's preferred stock will trade under the symbol ESCRP. The company's new website is being constructed. The board of directors felt the name change was an essential step in the repositioning of the company for future growth. This name change will be effective April 1.
The company issued a total of approximately 2,019,000 shares of common stock at a price of $2.39 per share for total gross proceeds of $4,825,000. The offering was effected through a private placement transaction with primarily individual investors. The net proceeds of the private offering will be used to fund working capital needs, capital expenditures, acquisitions of interests in oil and natural gas assets, and for general corporate purposes. Petrie Partners Securities LLC served as placement agent for the company.
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. It currently has development activities and opportunities in its Atlantic Rim coalbed methane and in the Pinedale Anticline in Wyoming. Also, exploration potential exists in its Niobrara acreage in Wyoming and Nebraska, which totals over 70,000 net acres, and over 6,000 net acres in Nevada. New focus areas include international and midstream opportunities that are currently being actively pursued.