Double Eagle Petroleum announced proved oil and gas reserves totaled more than 115 Bcfe, a 25% increase over 2009 year-end proved reserves. The 22.8 Bcfe net increase is a result of a 32.0 Bcfe increase in the Company's proved reserves offset by the 2010 production of approximately 9.2 Bcfe. This represents a reserve replacement ratio of approximately 350%. The increase in the quantity of proved oil and gas reserves contributed to an increase of over 58% in the present value of Double Eagle's proved reserves, discounted at 10%, (PV-10 Value), which totaled $143.7 million at year-end 2010.
During 2010, the Company focused on improving the quality of its producing wells and increasing working interest ownership in areas that it already operates. The Company's year-end reserve report reflects this business strategy. The significant increase in PV-10 at year-end 2010 was primarily related to: a) increased commodity prices; b) quantity increases in oil and gas reserves and c) an increased working interest percentage in the Atlantic Rim operating units.
The above reserves do not include any possible reserves related to the Company's Niobrara shale play acreage. The Company currently has over 70,000 net acres with Niobrara potential in parts of Wyoming and Nebraska. This acreage total includes 39,000 net acres in the Atlantic Rim, 15,600 net acres in the Powder River Basin, 9,100 net acres in the DJ Basin located in Wyoming and Nebraska, and 8,700 net acres in the Laramie/Hanna Basin.
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