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0001035704-06-000655.txt : 200609130001035704-06-000655.hdr.sgml : 2006091320060913111035ACCESSION NUMBER:0001035704-06-000655CONFORMED SUBMISSION TYPE:8-KPUBLIC DOCUMENT COUNT:30CONFORMED PERIOD OF REPORT:20060913ITEM INFORMATION:Regulation FD DisclosureITEM INFORMATION:Financial Statements and ExhibitsFILED AS OF DATE:20060913DATE AS OF CHANGE:20060913

FILER:

COMPANY DATA:COMPANY CONFORMED NAME:DOUBLE EAGLE PETROLEUM COCENTRAL INDEX KEY:0000029834STANDARD INDUSTRIAL CLASSIFICATION:CRUDE PETROLEUM & NATURAL GAS [1311]IRS NUMBER:830214692STATE OF INCORPORATION:MDFISCAL YEAR END:1231

FILING VALUES:FORM TYPE:8-KSEC ACT:1934 ActSEC FILE NUMBER:000-06529FILM NUMBER:061087848

BUSINESS ADDRESS:STREET 1:777 OVERLAND TRAILSTREET 2:PO BOX 766CITY:CASPERSTATE:WYZIP:82602BUSINESS PHONE:3072379330

MAIL ADDRESS:STREET 1:P O BOX 766STREET 2:P O BOX 766CITY:CASPERSTATE:WYZIP:82601

FORMER COMPANY:FORMER CONFORMED NAME:DOUBLE EAGLE PETROLEUM & MINING CODATE OF NAME CHANGE:19920703

8-K1d39627e8vk.htmFORM 8-K

e8vk

Table of Contents

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT
Pursuant to Section13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): September13, 2006

Double Eagle Petroleum Co.

(Exact name of registrant as specified in its charter)

Maryland

000-6529

83-0214692

(State or other jurisdiction
of incorporation)

(Commission File Number)

(IRS Employer Identification No.)

777 Overland Trail (P. O. Box 766), Casper, Wyoming 82601

(Address of principal executive offices)(Zip Code)

Registrants telephone number, including area code (307)237-9330

N/A

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy thefiling obligation of the registrant under any of the following provisions (see General InstructionA.2. below):

o Written communications pursuant to Rule425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

TABLE OF CONTENTS

Item7.01. RegulationFD Disclosure.Item9.01. Financial Statements and Exhibits.SIGNATUREINDEX TO EXHIBITSPresentation MaterialsPress Release

Table of Contents

Item7.01. RegulationFD Disclosure.

Beginning on September13, 2006 and at other times thereafter, Double Eagle Petroleum Co. (theCompany) intends to present or distribute the materials attached as Exhibit99.1 to investors.The Company undertakes no obligation to update, supplement or amend the materials attached asExhibit99.1.

On September13, 2006, the Company issued a press release entitled Double Eagle ReportsSpudding at Christmas Meadows, Testing at South Fillmore, and Casing and Perforation at Cow CreekUnit Deep #2. The press release is attached as Exhibit99.2 hereto.

In accordance with General Instruction B.2 of Form 8-K, the information in this report shallnot be deemed filed for the purpose of Section18 of the Securities Exchange Act of 1934, norshall it be deemed incorporated by reference in any filing. This report does not constitute adetermination of whether any information included in this report is material.

Item9.01. Financial Statements and Exhibits.

(d)Exhibits

Exhibit99.1 Presentation Materials

Exhibit99.2 Press Release dated September13, 2006

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has dulycaused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Date: September13, 2006 DOUBLE EAGLE PETROLEUM CO.

By:

/s/ Stephen H. Hollis

Stephen H. Hollis,

President and Chief Executive Officer

Table of Contents

INDEX TO EXHIBITS

Exhibit Number Description

Exhibit99.1

Presentation Materials

Exhibit99.2

Press Release Dated September13, 2006

EX-99.12d39627exv99w1.htmPRESENTATION MATERIALS

exv99w1

Double Eagle Petroleum Co.

September 2006

Financial & Operating

Update

Presented by

Stephen H. Hollis CEO

This presentation may contain projections and other forward-looking statements within themeaning of Section 21E of the Securities Exchange Act of 1934, as amended. Any suchprojections or statements reflect the Company's current views with respect to future eventsand financial performance. No assurances can be given, however, that these events willoccur or that such projections will be achieved and actual results could differ materiallyfrom those projected. A discussion of important factors that could cause actual results todiffer materially from those projected, such as decreases in oil and gas prices and/orunexpected decreases in oil and gas production, is included in the Company's periodicreports filed with the Securities and Exchange Commission.

DISCLAIMER

Cautionary Note to U.S. Investors - The United States Securities and ExchangeCommission permits oil and gas companies, in their filings with the SEC, to disclose onlyproved reserves that a company has demonstrated by actual production or conclusiveformation tests to be economically and legally producible under existing economic andoperating conditions. We use certain terms in this presentation, such as "probable"reserves and "possible" reserves, that the SEC's guidelines strictly prohibit us fromincluding in filings with the SEC. U.S. Investors are urged to consider closely thedisclosure in our Form 10-K File No. 0-6529, available from us at ComputershareInvestor Services, Inc. 350 Indiana St. Golden, CO 80401. You can also obtain this formfrom the SEC by calling 1-800-SEC-0330.

Double Eagle Petroleum Co.

Rocky Mountain Natural Gas

Exploration & Production Co.

NASDAQ (Small Cap Market) "DBLE"

Market Capitalization

$164,000,000 (9/11/06)

Shares Outstanding 8,628,604 (9/11/06)

49 BCFE of Proved Reserves

Double Eagle Petroleum

2003 2004 2005 2006 Est. Leasehold 2287 297 407 Exploration 231 324 3693 9900 Development 7564 8366 9494 14500 Pipeline 5378

Capital Spending ($ 000)

Double Eagle Petroleum Co. 2002 2003 2004 2005 1H 2006 Revenue 2270 6138 13267 20502 8646 Net Cash Flow 119 3239 7435 10319 6879

Revenue and Cash Flow($000s)

2005 vs. 2004 Year Comparison

Revenues + 56%

Cash Flow + 39%

Operating Income + 33%

Proved Reserves + 34%

PV10 (bfit) + 85%

Double Eagle Petroleum Co.

2006 vs. 2005 1st Half Comparison

Volumes (mcfe/d) - 8%

Prices ($/mcfe) + 6%

Cash Flow/ mcfe + 4.5 %

G & A Expenses + 43%

Double Eagle Petroleum Co.

Double Eagle Finding Costs

$ / MCFE 2002 2003 2004 2005 $ MCFE 1.15 1.01 0.57 0.66

Double Eagle Petroleum Co.

$0.10/MCFE Price Increase

@8,506 MCFD (Q2)

$0.021 EPS Increase

$273,000 Increase in Cash Flow

from Operating Activities

1 MMCFE/D Production Increase

@$5.24/MCF (Q2)

$0.063 EPS Increase

$1.3 Million Increase in Cash Flow

from Operating Activities

Natural Gas Leverage

Double Eagle Petroleum Co.

Cash Flow from Operations

Current LOC - $50 million

Current Borrowing Base - $25 million, $3 millionoutstanding at 6/30/06

Borrowing Base Additions - Bank will give 50-65% ofadded proved developed reserves (PV10%)

Project Financing Capabilities

6.510

6.715

6.720

6.110

5.656

5.820

6.165

6.675

7.455

6.265

Casper

Denver

Cow Creek Field

Spot prices for 8/22/06 flow date

Pinedale Anticline

Christmas Meadows

Double Eagle Petroleum Co.

Double Eagle Petroleum Co.

Double Eagle Petroleum Co.

Double Eagle Petroleum Co. 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr East 20.4 27.4 90 20.4 West 30.6 38.6 34.6 31.6 North 45.9 46.9 45 43.9

Proved Probable Possible Total Reserves 49 30 154

Proved

Probable

Possible

Proved - 35% Atlantic Rim, 55% Pinedale Anticline, 10% Other

Probable - 61% Pinedale Anticline, 39% Atlantic Rim

Possible - 100% Atlantic Rim

Reserves (BCF) as of 12/31/05

Reserves reviewed by Netherland, Sewell & Associates

Double Eagle Petroleum Co.

2002 2003 2004 2005 Prod mmcfe 1132 1425 2661 3069 New mmcfe 3331 7353 15311 15700

2005 - 512% Production

Replacement

4-Year Weighted Average

503%

Reserve Replacement

Projects Index Map

Deep Test by Questar

Double Eagle Petroleum Co.

Pinedale Anticline

Downspacing to 10 acres

Deep Test by Questar (no DBLEinterest)

13 New Wells Currently Drilling

4 Additional Awaiting Permits

Double Eagle Interests

0-13,000' 13,000-basement

Mesa A .312% orri .312% orri

Mesa B 8.0% WI 12.5% WI

Mesa C 6.4% CWI 3.125% orri

Mesa "B"

Mesa "A"

Mesa "C"

Atlantic Rim

Fully Developed

DBLE in 1600 gross wells

259 net wells

Double Eagle Petroleum Co.

Double Eagle Petroleum Co.

Cow Creek Field- Madison Structure

Double Eagle Petroleum

Madison Test

Structure from 3D Seismic

Target Frontier,Muddy, Nugget,Tensleep and Madisonlimestone

Mad #1 wellproducing from theDeep Creek Sandstoneat 3,300 feet

Cow Creek Unit Deep #2Well

South Fillmore Prospect

Top Almond Subsea

Contour Interval 500 Feet

South Fillmore

Drilled to total depth: 8,155 footMesaverde test, production casing set

Fraced August 9

Rates as of August 21 - 900 mcf of gas,60 bbls of oil

100% working interest in first well

Six sections of leases encompassing3,840 gross acres

Farmout from Anadarko and WarrenResources on four additional sectionsencompassing 2560 gross acres

80 locations on 80 acre spacing

Double Eagle PH State #16-1

COMPLETION

7904 - 7911

Bridge Plug 7930'

8100

8000

7900

7800

Hydraulic Fractures boundby dominant shale layers.

Gamma Ray

Density

Perforations

7936 - 7948

Christmas Meadows Prospect

Commenceddrilling Sept. 9

Double Eagleowns 41,237 grossacres

Double Eagle toretain 25% WI infirst well

Drill depth 15,750to test Frontier andDakota

12,000

8,000

4,000

SL

- -4000

- -8000

- -12,000

- -16,000

- -20,000

- -24,000

M

P

Tw

Uinta Mountain Group

Frontier

Hilliard

Mowry, Dakota,LK

North Flank Thrust

Kfu

Kmv

Kh

Frontier

Mowry

Dakota

J

Nugget

Tr

Phosphoria

Morgan, Weber

Miss

Ord

Cambrian

Hogsback Thrust

NW

SE

Table Top Unit #1Location

Christmas Meadows Prospect

A

A'

Proved, Probable and Possible Reserves

Reserves Reviewed by Netherland, Sewell & Associates Oil Gas PV10% Proved 313,538 bbl 47,152,604 mcf $126,330,300 Probable 138,558 bbl 28,891,862 mcf $59,973,200 Possible 153,899,606 mcf $364,093,900

At 12/31/05

Double Eagle Petroleum Co.

1st Qtr 2nd Qtr 3rd Qtr 4th Qtr East 20.4 27.4 90 20.4 West 30.6 38.6 34.6 31.6 North 45.9 46.9 45 43.9

5 Year Stock Performance vs. S&P 500

Summary Highlights

Revenue and cash flow have more than tripledsince 2003

Growth through the drill bit: proved reserves upover 400% to 49 bcfe while keeping finding costslow

Eastern Washakie Coal Bed and South FillmoreNatural Gas Projects hold considerabledevelopment drilling potential in coming years

Significant Exploration Drilling in 2006: ChristmasMeadows, Cow Creek Deep, and South Fillmore

EX-99.23d39627exv99w2.htmPRESS RELEASE

exv99w2

Exhibit99.2

Double Eagle Petroleum Company

P. O. Box 766 Casper, WY 82602 1-307-237-9330 Fax: 1-307-266-1823

FOR RELEASE AT 6 AM

Date: September13, 2006

Double Eagle Reports Spudding at Christmas Meadows,
Testing at South Fillmore, and Casing and Perforation at
Cow Creek Unit Deep #2

Casper, Wyoming Double Eagle Petroleum Co. (NASDAQ: DBLE) reported today on progress at theChristmas Meadows Prospect (Table Top Unit #1 well), the South Fillmore Prospect, the Cow CreekUnit Deep #2 well, and the Madden Unit participation.

At the Christmas Meadows Prospect, the Table Top Unit #1 well began drilling on September9, 2006at 235 feet, at the base of the conductor pipe that was set last summer. This prospect has been onhold since 1982 due to regulatory hurdles, because it is near the High Uinta Mountain WildernessArea. First Amoco, then Chevron and now Double Eagle have fought to be able to drill this well.Finally we have a rig drilling this wildcat well to be drilled to 15,750 feet to test the Dakotaand Frontier formations on a seismically-defined anticline. The test is scheduled to take 100daysto drill. Double Eagle has 24.89% working interest and is operating. After payout, Double Eaglesworking interest would increase to 30.30%.

At the South Fillmore Prospect, the PH State 1-16 well was flowed back after our fracturestimulation. Daily rates as of August21, 2006 were 900 mcf, 60 barrels of oil, and 444 barrels ofwater on a 32/64 inch choke with casing pressure of 1,000 psi and flowing tubing pressure of 200psi. Since the well began flowing back on August16, the gas volumes have continued to climb andthe water rates have declined. Double Eagle is preparing to drill an offset well, one-half mile tothe east. Additional wells will be staked in the next thirty days. We believe that our completiontechnique has been successful and we intend to proceed to develop the 3,840 acres of our leases andthe 1,280 acres we have farmed-in in the area. Production equipment is being assembled on locationto conduct a two week test of the well, which should begin this week. Double Eagle has 100%working interest in the PH State 1-16. Our working interest in the first offset well will be 100%before payout and 60% after payout.

At the Cow Creek Unit Deep #2 well, we drilled to 9,922 feet and have cased the well through theporous section of the Nugget Sandstone. We plan to perforate the top of the Nugget this week.Double Eagle has a before-payout working interest of 84% in the Cow Creek Unit Deep #2 well. Afterpayout, Double Eagles working interest would drop to 70.4%.

At Madden Unit, Double Eagle received notice that we will be offered participation in the FourthRevision Sour Gas Paleozoic Interval Participating Area A and ownership in the Lost Cabin GasPlant at an interest of 0.349204%. It appears that the interest would have an effective date ofFebruary2002 and would mean approximately 1million cubic feet of gas per day to Double

Eagle at the current production rates. It is not yet clear how we would recoup the gas owed to ourinterest from production occurring from February2002 to today. This needs to be resolved. If wepurchase this interest, for which we would be required to pay approximately $3.5million, we wouldhave a .349204% working interest in the currently drilling 10-5 Big Horn well, if that well issuccessful. This well is a 24,750 foot Madison development well. The seven Madison wellsproducing at Madden Anticline produce an average of forty million cubic feet of gas per day perwell.

Stephen H. Hollis, CEO of Double Eagle commented: The commencement of drilling at ChristmasMeadows is a milestone for Double Eagle. Our tenacity has paid off. We are extremely pleased tocommence drilling. In addition to this exciting wildcat, we have what we believe to be thepotential of a developing field at South Fillmore, and we will test the deep beds at Cow Creekwithin the next two weeks. Pinedale continues to amaze us with good development wells. Madden isjust a good example of what will continue to happen on our more than 200,000 net acres in the RockyMountains.

About Double Eagle

Founded in 1972, Double Eagle Petroleum Co. explores for, develops, and sells natural gas and crudeoil, with natural gas constituting more than 90% of its production and reserves. The Companyscurrent development activities are in its Atlantic Rim coal bed methane play and in the PinedaleAnticline in Wyoming. Its current exploration activities involve the Christmas Meadows Prospect innortheastern Utah as well as the Cow Creek Unit Deep and South Fillmore prospects in Wyoming.

*******

This release may contain forward-looking statements regarding Double Eagle Petroleum Co.s futureand expected performance based on assumptions that the Company believes are reasonable. Noassurances can be given that these statements will prove to be accurate. A number of risks anduncertainties could cause actual results to differ materially from these statements, including,without limitation, decreases in prices for natural gas and crude oil, unexpected decreases in gasand oil production, the timeliness, costs and results of development and exploration activities,unanticipated delays and costs resulting from regulatory compliance, and other risk factorsdescribed from time to time in the Companys Forms 10-K and 10-Q and other reports filed with theSecurities and Exchange Commission. Double Eagle undertakes no obligation to publicly update theseforward-looking statements.

Company Contact:
Steve Hollis, President
(307)237-9330

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