EXHIBIT 99.1
Double Eagle Petroleum Company
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P. O. Box 766 o Casper, WY 82602 o 0-000-000-0000
Fax: 0-000-000-0000
From the desk of Xxxxx Xxxxxx, President
FOR RELEASE AT 6:00 AM, EST
Date: November 15, 2004
Double Eagle Petroleum Reports 3rd Quarter Results
Casper, Wyoming - Double Eagle Petroleum Co. (NASDAQ: DBLE) today reported
quarterly revenues, earnings and production for the third quarter ended
September 30, 2004. Production volumes increased 64% from the comparable prior
year quarter. Revenues increased 78% to $3,319,000 as net income increased 123%
to $766,000. Net income per share increased 80% to $0.09 basic and fully
diluted.
For the nine-month period ended September 30, 2004, production volumes increased
84% from the prior year period. Revenues increased 112% to $8,926,000 as net
income increased 332% to $2,916,000. Net income per share increased 240% to
$0.34 basic and fully diluted. The increases were due to successful development
drilling in Cow Creek and Mesa Units and higher prices for natural gas and oil.
The Cow Creek Unit averaged gas sales of 4,440 mcf per day during the third
quarter as compared to 4,344 mcf per day in the second quarter. During the
majority of the third quarter, Double Eagle had three previously producing xxxxx
at Cow Creek that were shut-in for pump failures. These xxxxx are anticipated to
be back on line during the latter part of December.
Double Eagle's overall production volumes decreased by 6.5% in the third quarter
as compared with the second quarter due primarily to the payout status of the
Mesa "C" Participating Area, for which Questar is the operator. Double Eagle has
a small overriding royalty interest and an after-payout earned working interest
in the Mesa "C" Participating Area, which contributed gas sales of an average of
586 mcf per day to Double Eagle in the third quarter as compared with an average
of 1,308 mcf per day in the second quarter. This interest in the Mesa "C"
Participating Area had been at an after-payout status during the second quarter.
It then reverted to a pre-payout status for Double Eagle during the majority of
the third quarter as a result of additional drilling costs incurred for new
xxxxx. The project has again "paid out" the recent drilling costs, and is
currently producing on an "after-payout" basis.
Questar has received permission to continue drilling in the Mesa Unit through
the winter. Double Eagle expects to be involved with 8-10% working interest in
several xxxxx within the Mesa Unit this winter. Significant additional
developmental drilling is anticipated to occur as a result of the 20-acre
spacing in the project. Questar is currently experimenting with a well on 10
acre spacing.
Anadarko expects to have natural gas sales from Xxxx Mountain before the end of
the year. Double Eagle has an approximate 25% working interest in the 24
producing xxxxx at Xxxx Mountain.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
Three Months Ended September 30, Nine Months Ended September 30,
%Change 2004 2003 %Change 2004 2003
Revenues
Oil and gas sales 3,009 1,866 8,004 4,173
Carried working interest gas
sales 250 - 824 -
Sale of lease 46 - 46 35
Other Income 14 52 8
78% 3,319 1,866 112% 8,926 4,216
Expenses
Lease operating expenses 589 255 1,275 683
Production taxes 393 240 1,011 522
Exploration expense 41 66 140 172
Gross Margin 76% 2,296 1,305 129% 6,500 2,839
General and administrative 388 333 1,089 808
Interest (income)/ expense (6) 56 (12) 157
Write-offs, abandonments,
cost of leases sold 101 8 131 23
Depletion, depreciation,
amortization, impairments 872 575 2,201 1,177
Other - (11) - -
Pre-tax income 174% 941 343 359% 3,091 675
Provision for income taxes 175 - 175 -
Net Income 123% 766 343 332% 2,916 675
Net Income per share
Basic & Diluted 0.09 0.05 0.34 0.10
Weighted average shares outstanding
Basic 8,483 6,791 8,464 6,721
Diluted 8,600 7,007 8,597 6,900
SUMMARY BALANCE SHEET
(in thousands, except price data)
% Change September 30, 2004 September 30, 2003
Total assets 57% $26,692 $17,047
Total long-term debt N/A 0 6,900
Stockholders' equity 197% 23,535 7,925
Summary Operational Data
Three Months Ended Nine Months Ended
September 30, 2004 September 30, 2003
%Change 2004 2003 %Change 2004 2003
Total production (Mcfe per
day) 64% 7,342 4,480 84% 6,729 3,667
Average price per
Mcfe 7% 4.83 4.52 14% 4.79 4.21
About Double Eagle
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.
*******
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:
Xxxxx Xxxxxx, President
(000) 000-0000
