Double Eagle Gets Project Go Ahead

At the Christmas Meadows Project Double Eagle has been notified by the U.S. Forest Service that the Final Supplement to the Table Top Environmental Impact Statement has been reviewed, and that Double Eagle and its partners may proceed with completion of the access road and drilling of the well this year. Double Eagle plans to finish road construction and build the drilling pad in July 2005, with drilling to begin as quickly as possible thereafter. Prima Oil, which was acquired by Petro Canada, has relinquished its interest and duties as operator to Double Eagle et al., and Double Eagle will be seeking additional partners for drilling the well this summer.

Cow Creek: Double Eagle has drilled and cased the 13-7A well at Cow Creek. The well was drilled to a total depth of 4,150 feet based on an anomaly seen on the 3-D seismic survey that was acquired by Double Eagle in the summer of 2002. Several gas shows were seen in zones deeper than the currently producing coals of the Mesaverde. These zones will be tested through perforations in the next month. If the well does not produce commercial gas, the wellbore will be utilized as a water injection well to further facilitate the development of the shallower Mesaverde coals.

On January 30, 2005, Double Eagle sold 6.5 million cubic feet of natural gas from its 14 producing coal bed methane wells within the Cow Creek Unit. Double Eagle has a 100% working interest and an 80% net revenue interest in these wells.

Pinedale: An additional development well, the 13AA-16, was brought on line on January 25, 2005 at a sales rate of 6 million cubic feet per day. Double Eagle has an entitlement of 576,000 cubic feet per day from the well and an aggregate entitlement of 2.951 million per day from the wells within The Mesa Unit "B" Participating Area. In addition, Double Eagle has an entitlement of approximately 1.0 million per day from the Mesa Unit "C" Participating Area and minor production from the Mesa Unit "A" Participating Area.