Exhibit 99.1
Double Eagle Petroleum Company
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P. O. Box 766 o Casper, WY 82602 o 1-307-237-9330 o Fax: 1-307-266-1823
FOR RELEASE AT 6 AM
Date: October 3, 2006
Double Eagle Petroleum Reports Project Update
Casper, Wyoming - Double Eagle Petroleum Co. (NASDAQ: DBLE) reported today on
progress at the Christmas Meadows Prospect (Table Top Unit #1 well), Pinedale
Anticline, the South Fillmore Prospect, and the Cow Creek Unit Deep #2 well.
At the Christmas Meadows Prospect, the Table Top Unit #1 well began drilling on
September 9, 2006 at 235 feet, at the base of the conductor pipe that was set
last summer. As of October 1, 2006, twenty inch surface casing has been set to a
depth of 1,030 feet and we are drilling below 2,000 feet. We anticipate that it
will be sixty days before we get to rocks that will help tell us how well our
seismic has been interpreted. This prospect has been on hold since 1982 due to
regulatory hurdles, because it is near the High Uinta Mountain Wilderness Area.
Amoco, Chevron and then Double Eagle fought to get this well drilled. Finally we
have a rig drilling this wildcat well to test a promising seismic feature.
Double Eagle has 24.89% working interest and is operating. After payout, Double
Eagle's working interest would increase to 30.30%. The 15,750 foot wildcat is
scheduled to take 100 days to drill.
At Pinedale Anticline, eleven wells are being drilled or completed on acreage in
which Double Eagle owns an interest and six additional locations have been
proposed for winter drilling. Within the Mesa Unit Participating Areas B and C,
where Double Eagle owns working interests ranging from 6 to 12.5%, eight wells
have been drilled and six wells have been staked. The wells in these two
Participating Areas have yielded initial rates that net Double Eagle more than
300 mcf per day per well. The other four wells have been drilled on the Mesa
Unit Participating Area A, where Double Eagle has a small overriding royalty
interest.
At the South Fillmore Prospect, the PH State 1-16 well was flowed back after our
fracture stimulation. Rates as of August 21, 2006 were 900 mcf per day, 60
barrels of oil per day and 444 barrels of water per day on a 32/64 inch choke
with casing pressure of 1,000 psi and flowing tubing pressure of 200 psi. Since
the well began flowing back on August 16, the gas volumes have continued to
climb and the water rates have declined. A two week test is on hold until we can
get our workover rig on the well to reconfigure the downhole set up. This is
anticipated within the next couple of weeks. Double Eagle is preparing to drill
an offset well, 160 acres to the east. Eight additional wells will be staked in
the next thirty days. We believe that our completion technique has been
successful, and we intend to proceed to develop the 3,840 acres of our leases
and 1,280 acres of farm-in acreage in the area. Double Eagle has 100% working
interest in the PH State 1-16. Our working interest in the first offset well
will be 100% before payout and 60% after payout.
At the Cow Creek Unit Deep #2 well, we drilled to 9,922 feet and have cased the
well through the porous section of the Nugget Sandstone. The Nugget sandstone
was perforated and produced water. Further evaluation is being done on the zones
above the Nugget as well as the possibility of steering the well to the top of
the anticline to test the Tensleep and Madison Formations. Double Eagle has an
84% working interest in the Cow Creek Unit Deep #2 well. After payout, Double
Eagle's working interest would drop to 70.4%.
Stephen H. Hollis, CEO of Double Eagle commented: "The drilling of Christmas
Meadows is progressing. Thus far, we have a very straight well and plan to use
directional tools to help us keep it straight. The beds in the pre-Cambrian
metasediments are steeply dipping and we expect overturned Paleozoic beds as we
drill through the North Flank Thrust of the Uinta Mountains. The Hogsback Thrust
sheet which lies beneath the North Flank Thrust is expected to have contorted
beds which can be difficult to stay straight in also. At Pinedale, we are
blessed to be involved in all these development wells. They are anticipated to
increase our production significantly. At South Fillmore, our two week test has
been delayed until we can get a bridge plug out and set our tubing deeper. "
About Double Eagle
Founded in 1972, Double Eagle Petroleum Co. explores for, develops, and sells
natural gas and crude oil, with natural gas constituting more than 90% of its
production and reserves. The Company's current development activities are in its
Atlantic Rim coal bed methane play and in the Pinedale Anticline in Wyoming. Its
current exploration activities involve the Christmas Meadows Prospect in
northeastern Utah as well as the Cow Creek Unit Deep and South Fillmore
prospects.
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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
results of development and exploration activities, unanticipated delays and
costs resulting from regulatory compliance, and other risk factors described
from time to time in the Company's Forms 10-K and 10-Q and other reports filed
with the Securities and Exchange Commission. Double Eagle undertakes no
obligation to publicly update these forward-looking statements.
Company Contact:
Steve Hollis, President
(307) 237-9330