Double Eagle Petroleum Reports Reserves
As previously reported, the estimated proved oil and gas reserves of Double Eagle Petroleum Co., estimated by Netherland, Sewell & Associates, Inc. (NSAI) as of December 31, 2005, increased 34.7% to 49,033,832 mcfe from 36,391,029 mcfe at December 31, 2004. Today, Double Eagle also announced that NSAI has estimated Double Eagle's probable and possible reserves on the Company's acreage holdings to be 29,723,090 mcfe and 153,899,606 mcfe, respectively. The following table summarizes NSAI's estimates.
Reserves Estimated Mcfe Proved Developed Producing 24,058,848 Proved Undeveloped 24,974,984 Total Proved 49,033,832 Probable 29,723,090 Possible 153,899,606
Probable and possible reserves are inherently riskier than proved reserves due to the fact that such well locations are either not direct offsets to existing wells or represent coal seams that have not yet produced in commercial quantities.
The estimated reserves within our two major projects are broken out below. Eastern Washakie Coal Bed Natural Gas Play Gross Proved Wells Estimated Mcfe PDP 52 8,918,114 PUD 40 8,427,995 Total Proved 92 17,346,109 Probable 27 11,746,482 Possible 334 153,899,606
The drilling locations used to calculate these reserves are all located in what we believe to be the fairway of the play between a depth of 400 feet and 6,000 feet for the main coal in the Almond Formation of the Mesaverde Group. Double Eagle has under lease additional lands that fall outside these parameters that may be considered productive with further advances of completion procedures.
Pinedale Anticline Gross Proved Wells Estimated Mcfe PDP 57 12,673,175 PUD 69 16,546,989 Total Proved 126 29,220,164 Probable 88 17,976,278
Stephen H. Hollis, CEO of Double Eagle stated: "We are pleased with our reserve growth and look forward to turning our proved undeveloped, probable and possible locations into producing wells. Our finding costs were $0.66 per mcfe in 2005 as we participated in 104 wells. In 2006, we hope to drill at least four wildcats in addition to participating in over 100 development wells as we have for the last two years." The four exploratory wells include the 8,000 foot Mesaverde test at South Fillmore that is waiting completion, a 12,350 foot Madison test at Cow Creek, a 15,750 foot Ten Sleep test at Christmas Meadows, and an 8,000 foot Ten Sleep test at our Rattlesnake Prospect.
Founded in 1972, Double Eagle Petroleum Co. explores for, develops, and
sells crude oil and natural gas. The Company's current areas of exploration
and development focus on Southwestern Wyoming, the Powder River Basin and the
Wind River Basin in Wyoming.
- Land Swaps Let Permian Drillers Expand Shale Wells on the Cheap (Mar 29)
- Double Eagle Petroleum Briefs 2011 Exploration, Development Plans (Aug 03)
- Double Eagle Petroleum Reports 2010 Results (Mar 08)