Double Eagle Petroleum Co. reports record production results
Provides Rockies Outlook
September 5, 2008
Double Eagle Petroleum Co. (Nasdaq: DBLE) announced on September 4 that the Company continues to recognize a record level of production. The increase is primarily attributable to the success of the Company's new wells drilled in the Catalina Unit, and increased production in the Pinedale Anticline where 18 new wells have been completed and brought on-line through August 2008.
The Company projects total net production for the month of August 2008 of approximately 750 Mmcfe (approximately 24 Mmcfe per day), an increase of 186% over August 2007 and an increase of 20% over July 2008.
Based upon operator projections, daily production net to Double Eagle for August 2008 is expected to exceed 7,000 Mcfe per day versus approximately 1,602 Mcfe per day for the same prior year period, representing a 337% increase. This increase is due to the new production wells coming on-line and the depressed 2007 results due to wells being shut in for maintenance and low gas prices.
In a release from the company, Richard Dole, Chairman of the Board of Double Eagle, commented: "Our August numbers continue to show the strength of our assets and realized production." He said August represented the 6th consecutive month of record production results.
The company said natural gas prices in the Rockies have weakened considerably during the 3rd quarter. They expect continued weakness during September due to low regional gas demand and a significant reduction of pipeline capacity caused primarily by three weeks of hydrostatic testing on REX (Rockies Express).
Double Eagle Petroleum Co. explores for, develops, and sells natural gas and crude oil, with natural gas constituting more than 95% of its production and reserves. The Company's current major development activities are in its Atlantic Rim coal bed methane play and in the Pinedale Anticline in Wyoming.
Company Contact: John Campbell, IR (303) 794-8445, http://www.dble.us, SOURCE Double Eagle Petroleum Co.