Double Eagle Petroleum Increases Production at Cow Creek

Double Eagle Petroleum reports that additional facilities at the Cow Creek Unit have been completed and production has started to increase. An additional compressor, two new generators, a new dehydrator and an additional injection well have been installed and are all working. On March 11, 2004, nine Mesaverde coal bed wells within the Cow Creek Unit produced 4.453 million cubic feet of natural gas and 14,240 barrels of water. Double Eagle Petroleum Co. owns 100 percent working interest and 79.9 percent net revenue interest in this production. This compares to production of 3.2 million cubic feet of natural gas and 10,847 barrels of water from seven Mesaverde coal bed wells on March 1, 2004 before the new facilities were operational. An additional five wells are shut in, awaiting stimulation, and expected to be producing by April 1, 2004.

Stephen H. Hollis, President of Double Eagle Petroleum Co. commented: "The wells are performing very well, averaging almost 500 mcf per day, and we now have the compression to handle the gas produced as well as the facilities to allow them to de-water over 20,000 barrels of water per day. At the current production rates and gas prices, the wells would payout in less than a year of production. We hope to participate in as many wells in this play as we possibly can. This field currently represents 58 percent of Double Eagle Petroleum Co.'s production. Double Eagle Petroleum Co. has under lease in the Eastern Washakie Area 52,107 gross acres, 30,765 net acres. The wells are currently being drilled on 80 acre spacing."