Double Eagle Petroleum Reports Project Update
24 Ottobre 2007 - 12:00PM
PR Newswire (US)
CASPER, Wyo., Oct. 24 /PRNewswire-FirstCall/ -- Double Eagle
Petroleum Co. (NASDAQ:DBLE) reported today progress at the Atlantic
Rim Project as well as at Huntington Valley, South Fillmore, South
Waltman, and Pinedale. At Atlantic Rim, Double Eagle has three rigs
drilling in the Catalina Unit. Twenty wells have been drilled and
cased. We are making good progress on the compressor station and
the injection wells. Our intent now is to have all of the 33 new
wells hooked up, with the successful ones producing before the end
of the year. We anticipate that Double Eagle will have 73.84%
working interest in these wells and also in the 14 existing
producing wells in Cow Creek Field. Once the new wells establish
sufficient production, the fourteen coal bed wells currently in the
Cow Creek Unit will become part of the Catalina Unit. Although
there is no certainty, but if these wells are successful, we will
have 47 wells (34.7 net wells) producing at Cow Creek. The fourteen
existing wells (14 net wells) generated 54% of Double Eagle's
revenue in 2006. Obviously, the more than 100% increase in the net
producing wells should be significant to Double Eagle. Concerning
the injunction that has been filed in District Court in Washington,
D. C. to stop our development of this play, the judge decided on
October 18th that the parties involved will be allowed to submit
additional briefs until October 29th and that a ruling is expected
be made sometime thereafter. Also within the Atlantic Rim, Anadarko
expects to drill 69 additional wells in which Double Eagle will
have approximately 8% working interest within the Sun Dog Unit.
Drilling started in late September. We are aware of seven wells
that have been drilled and cased by October 19. In Nevada, V. F.
Neuhaus has drilled the Straight Flush #17-1 well in Huntington
Valley, Elko County, Nevada to a depth of 7,496 feet. Double Eagle
had 97.327% working interest in this well and earned interest under
six sections of land. No commercial deposits of oil and gas were
identified and the well was plugged. We will give more detail on
this important exploratory test in a future release. At South
Fillmore, the SJ Fee #11-9 well has been completed with
perforations at a depth of 8,192 to 8,196 feet. Testing was
completed with a flow rate of 1,635 mcf per day, 107 barrels of oil
per day and no water. Double Eagle has a 50% working interest in
this well before payout and 30% after payout. Gas sales are
expected by December 1, 2007. At South Waltman in the Wind River
Basin, Double Eagle expects to begin drilling the Waltman 34-24
well by the middle of November. This well is a forty acre offset to
the Chevron Waltman 96 well that has produced 498,443 mcf of
natural gas during the period from January through August 2007.
Double Eagle will be the operator and have 28.6417 % working
interest. The well is scheduled to be drilled to a total depth of
9,200 feet and should take us about a month. At Pinedale, Questar
is currently drilling with three drilling rigs on lands in which
Double Eagle has an interest. It is anticipated that in 2007, 34
wells (2.3 net wells to Double Eagle) will be drilled. Twenty wells
have been drilled or are drilling as of October 23, 2007.
Additionally, the Company's application to transfer its preferred
shares' listing from the NASDAQ Capital Market to the NASDAQ Global
Select Market has been approved effective October 19, 2007. The
trading symbol for Double Eagle preferred shares will continue to
be DBLEP. Stephen H. Hollis, CEO of Double Eagle, commented: "Our
staff is working overtime. The program in the Atlantic Rim together
with our other programs is expected to increase our production
volume significantly this year. I am looking forward to getting our
new wells on line by the end of the year when the new Rocky
Mountain Express pipeline is expected to get open to the mid
continent. Pricing for natural gas is expected to increase
significantly when this pipeline opens. We are hoping that our
timing will be just right." About Double Eagle Founded in 1972,
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
development activities are in its Atlantic Rim coal bed methane
play and in the Pinedale Anticline in Wyoming. Its current
exploration activities involve projects in southwestern Wyoming,
Nevada and other Rocky Mountain states. This release contains
forward-looking statements regarding Double Eagle's future plans
and expected performance based on assumptions the Company believes
to be reasonable. A number of risks and uncertainties could cause
actual results to differ materially from these statements,
including, without limitation, the success rate of exploration
efforts and the timeliness of development activities, fluctuations
in oil and gas prices, and other risk factors described from time
to time in the Company's reports filed with the SEC. In addition,
the Company operates in an industry sector where securities values
are highly volatile and may be influenced by economic and other
factors beyond the Company's control. Double Eagle undertakes no
obligation to publicly update these forward-looking statements,
whether as a result of new information, future events or otherwise.
DATASOURCE: Double Eagle Petroleum Co. CONTACT: John Campbell,
+1-303-794-8445, or Steve Hollis, President of Double Eagle
Petroleum Co., +1-307-237-9330
Copyright