Businessweek

Double Eagle Petroleum Co., an independent energy company, engages in the exploration, development, production, and sale of natural gas and crude oil, primarily in Rocky Mountain Basins of the western the United States. The company’s core properties are located in southwestern Wyoming. It has coal bed methane reserves and production in the Atlantic Rim Area of the eastern Washakie Basin and tight gas reserves and production on the Pinedale Anticline in the Green River Basin of Wyoming. The company also has an active exploration project, where it is pursuing hydrocarbons in the Niobrara formation in the eastern Washakie Basin, located in south central Wyoming. As of December 31, 2011, the company had estimated proved reserves of 133.9 billion cubic feet of natural gas and 450 thousand barrels of oil; or a total of 136.6 billion cubic feet of gas equivalent. Strategy The company's business strategy includes new coal bed methane gas development drilling; enhancement of existing production wells and field facilities on operated and non-operated properties in the Atlantic Rim; continued participation in the development of tight sands gas wells at the Mesa Units on the Pinedale Anticline; expansion of its midstream business; pursuit of high quality exploration and strategic development projects with potential for providing long-term drilling inventories that generate high returns; and selectively pursing strategic acquisition or mergers. Properties and Operations As of December 31, 2011, the company owned interests in approximately 1,200 producing wells; and had an acreage position of 405,726 gross (139,962 net) acres, of which 262,650 gross (124,306 net) acres are undeveloped, in natural gas prone basins primarily located in the Rocky Mountains. The Atlantic Rim Coal Bed Natural Gas Project Located in Carbon County of south central Wyoming, the Atlantic Rim play is a 40-mile long trend in the eastern Washakie Basin, in which the company has an interest in 99,512 gross (46,716 net acres) acres. The primary areas being developed within the Atlantic Rim are the Catalina Unit, and its non-operated interests in the Sun Dog and the Doty Mountain Units. Catalina Unit: The Catalina Unit consists of 21,725 total acres (9,134 net acres) that the company operates. In 2011, the company drilled and completed 13 new producing wells in the unit. 12 of the 13 new wells are located in an exploratory area of the Catalina Unit (outside the existing participating area (PA)) and the company holds a 100% working interest in these wells. Eastern Washakie Midstream Pipeline LLC: Through a wholly-owned subsidiary, Eastern Washakie Midstream Pipeline LLC (EWM), the company owns a 13-mile pipeline and gathering assets, which connect the Catalina Unit with the pipeline system owned by Southern Star Central Gas Pipeline, Inc. Sun Dog Unit: The Sun Dog Unit is adjacent to the Catalina Unit to the east. Anadarko (Anadarko) operates this 21,929 acre unit in which the company owns a total of 11,420 gross (5,147 net) acres. Within the Sun Dog Unit PA, the company owned a 21.53% working interest in the 114 production wells therein as of December 31, 2011. Doty Mountain Unit: The Doty Mountain Unit is adjacent to the Catalina Unit to the northeast. Anadarko operates this 20,336 acre unit in which the company owns a total of 2,000 gross (2,000 net) acres. As of December 31, 2011, the company owned an 18.00% working interest in the 60 production wells within the PA of the Unit. Other Acreage: Other than these 3 units, the company owns interests in approximately 64,367 gross (30,435 net) additional acres in the Atlantic Rim that may provide other opportunities for future development. The Pinedale Anticline in the Green River Basin of Wyoming The Pinedale Anticline is in southwestern Wyoming, 10 miles south of the town of Pinedale. QEP Resources, Inc. operates 2,400 acres in the 3 Mesa Units in which the company holds a net acreage position of 110 acres. The Mesa Units on the Pinedale Anticline includes approximately 165 non-operated wells that produced 21% of its total production for 2011. As of December 31, 2011, in the