Escalera Resources (ESCR) 8-K Double Eagle Petroleum Reports Record Year in 2005

Exhibit 99.1

From the desk of Steve Hollis, President

FOR RELEASE AT 1:00 PM, EST
Date: March 16, 2006

Double Eagle Petroleum Reports Record Year in 2005

Casper, Wyoming-Double Eagle Petroleum Co. (NASDAQ: DBLE)announced today that the Company had record revenues, production and proved reserves for its year ended December 31, 2005. The table below reports the results for the years ended December 31, 2005 and December 31, 2004.

• Total revenues increased 55 %

• Pre-tax income increased 34 %

• Cash flow from operating activities increased 39 %

STATEMENTS OF OPERATIONS
(in thousands, except per share data)

				Year ended December 31
	%Change			2005		2004
Revenues
Oil and gas sales					20,451		13,058
Other income					51		209
Total revenues		54.5	%		20,502		13,267
Expenses
Lease operating expenses					3,800		2,156
Production taxes					2,523		1,645
Exploration expense					747		324
General and Administrative					2,990		1,581
Depletion, depreciation, amortization, impairments					4,426		3,063
Total costs & expenses		65.2	%		14,486		8,769
Income from operations					6,016		4,498
Other expense					9		20
Income before income tax		34.1	%		6,008		4,478
Income tax expense					2,043		450
Net Income		-1.6	%		3,965		4,028

				Year ended December 31
	%Change			2005		2004
Net Income per share
Basic		-2.1	%		0.46		0.47
Diluted		-2.1	%		0.46		0.47
Weighted average shares outstanding
Basic		1.1	%		8,564,228		8,469,852
Diluted		0.3	%		8,628,476		8,599,020

SUMMARY CASH FLOW STATEMENT
(in thousands)

Cash flow from operating activities 39.0 % 10,319 7,435

SUMMARY BALANCE SHEET
( in thousands )

				December 31,
	% Change			2005		2004
Total assets		42.7	%		44,211		30,969
Long-term debt		—			3,000		—
Stockholders’ equity		19.4	%		29,778		24,927

SUMMARY OPERATIONAL DATA

	% Change			2005		2004
Daily production (Mcfe)		15.6	%		8,408		7,270
Annual production (Mcfe)		15.3	%		3,069,000		2,661,000
Average price per Mcfe ($)		35.6	%		6.66		4.91

PROVED RESERVES

Proved Reserves	% Change			2005		2004
Oil Reserves (MBbl)		18.0	%		329		278
Gas Reserves (MMcf)		35.0	%		47,234		34,935
Total (MMcfe)		34.0	%		49,207		36,603

Total proved reserves as of December 31, 2005 were 49,206,846 Mcfe which represents a 34% increase over total reserves of 36,603,076 Mcfe as of December 31, 2004. Netherland, Sewell & Associates. Inc. reviewed approximately 99% of Double Eagle Petroleum Co.’s proved reserves at December 31, 2005 and 2004. Approximately 49% of the Company’s proved reserves are categorized as Proved Developed. Our reserve to annual production ratio (R/P) is 16.3 years. We replaced over 500% of our production for the year. The increase in proved reserves resulted from successful development drilling and down spacing at the Mesa Unit on the Pinedale Anticline, as well as from exploration in the Doty Mountain and Sun Dog Units in the Eastern Washakie Basin coal bed natural gas play.

The Mesa Unit, which consists of approximately 2,400 acres, has been approved for ten acre spacing. Double Eagle currently has an interest in 53 producing wells, and anticipates participating with the operator in continued additional development drilling.

The coal bed natural gas play in the eastern Washakie Basin is being developed in the shallow Mesaverde coal beds. Additional coal bed wells cannot be drilled until the Environmental Impact Study is completed. This is currently scheduled to be completed in the Fall of 2006. While we wait for this plan to be completed, we are preparing the infrastructure of compression and water handling facilities to facilitate a large drilling program. The Catalina Unit has been formed to accommodate the drilling of up to 260 additional wells, approximately 100 net wells to us, and would be operated by Double Eagle. In addition, an exploratory well, the Cow Creek Deep #2, is planned to be drilled to approximately 12,350 feet in 2006 to test the deeper objectives at Cow Creek Field. We will have an 84% working interest in the well.

	PDP				PUD				Total Proved
	MMcfe				MMcfe				MMcfe
Eastern Washakie CBM		8,918	37	%		8,428	34	%		17,346	35	%
Mesa (Pinedale)		12,673	52	%		16,547	66	%		29,220	60	%
Other		2,641	11	%		0				2,641	5	%
		24,232	100	%		24,975	100	%		49,207	100	%

Stephen H. Hollis, CEO of Double Eagle Petroleum Co., commented: “We had a good year in 2005, but we didn’t get several wells drilled because of lack of rig availability. We have lined up drilling rigs for all but one of our wells to be drilled this year. Our South Fillmore project started drilling on March 2, 2006. A completion rig is on our Mad #1 well at Cow Creek. In addition, a rig has been contracted to begin drilling our 12,350 foot Madison test at the Cow Creek Deep #2, on April 1, 2006. With this same rig, Christmas Meadows, a 16,000 foot exploratory test is scheduled to begin drilling on June 1, 2006. The Rattlesnake Prospect, an 8,000 foot exploratory test in the Powder River Basin, is scheduled to be drilled in May 2006, and although I believe we have found a rig to drill this, we have not signed a drilling contract yet. We also have two rigs lined up to start drilling coal bed wells on October 1, 2006, when we believe the EIS will be completed at Atlantic Rim. These two rigs are scheduled to drill at least 34 wells. We are looking forward to a busy year.”

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 the Southwestern Wyoming Powder River Basin and the Wind River Basin in Wyoming.

*******

This release may contain forward-looking statements regarding Double Eagle Petroleum Co.’s future and expected performance based on assumptions that the Company believes are reasonable. No assurances can be given that these statements will prove to be accurate. A number of risks and uncertainties 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 gas and oil production, the timeliness, costs and success of development activities, unanticipated delays and costs resulting from regulatory compliance, and other risk factors described from time to time in the Company’s periodic reports filed with the Securities and Exchange Commission.

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