Profile: Double Eagle Petroleum Co (DBLE.OQ)
Double Eagle Petroleum Co. (Double Eagle), incorporated in January 1972, is an independent energy company engaged in the exploration, development, production and sale of natural gas and crude oil, primarily in Rocky Mountain Basins of the western United States. The Company’s properties are located in southwestern Wyoming. Double Eagle 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. As of December 31, 2011, it owned interests in over 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, which are natural gas prone basins primarily located in the Rocky Mountains. Two developing areas, the Atlantic Rim coal bed natural gas play and the Pinedale Anticline, accounted for 94% of its proved reserves as of December 31, 2011, and 94% of its production.
The Atlantic Rim Coal Bed Natural Gas Project
The Atlantic Rim Coal Bed Natural Gas Project is a 40-mile long trend in the Eastern Washakie Basin, in which Double Eagle has an interest in 99,512 gross acres (46,716 net acres). The Mesaverde coals in this area differ from those found in the Powder River Basin in that they are thinner zones, but have higher gas content. The primary areas being developed within the Atlantic Rim are the Catalina Unit, for which the Company is the operator, and its non-operated interests in the Sun Dog and the Doty Mountain Units. The Catalina Unit consists of 21,725 total acres (9,134 net acres) that the Company operates. During 2011, Catalina Unit accounted for 52% of the Company’s total sales volumes. Its daily net production at the Catalina Unit was 13,372 thousand cubic feet (Mcf).
The Company owns, through its wholly-owned subsidiary, Eastern Washakie Midstream Pipeline LLC, a 13-mile pipeline and gathering assets, which connect the Catalina Unit with the pipeline system owned by Southern Star Central Gas Pipeline, Inc. The pipeline provides it with access to the interstate gas markets, and the ability to move third party gas. The pipeline has a transportation capacity of approximately 125 million cubic feet (MMcf) per day. The Sun Dog Unit adjacent to the Catalina Unit to the east. Anadarko operates this 21,929 acre unit, in which it owns a total of 11,420 gross (5,147 net) acres. Within the Sun Dog Unit PA, it owned a 21.53% working interest in the 114 production wells therein as of December 31, 2011.
The Doty Mountain Unit is adjacent to and northeast of the Catalina Unit. The Mesaverde coals at Doty Mountain are thicker than in the Catalina Unit and have higher gas contents. Anadarko operates this 20,336 acre unit, in which Double Eagle owns 2,000 gross acres. During 2009, Doty Mountain Unit had a production of 761 million cubic feet.
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 Mesa Unit, in which the Company holds a net acreage position of 110 acres. The Mesa Unit on the Pinedale Anticline includes approximately 165 non-operated wells producing approximately 21% of the total production during 2011. The net production from the Mesa Unit during 2011 was 1,987 million cubic feet, or 5,445 thousand cubic feet per day. As of December 31, 2011, in the Mesa A PA, there were 22 producing wells.
The Wind River Basin in Central Wyoming
The Wind River Basin in Central Wyoming is located in central Wyoming. The Company has interests in 50,946 gross acres, (3,012 net acres), of leases in this Basin. It includes two natural gas accumulations, the Madden Anticline and the Cave Gulch/Waltman Fields. The Madden Anticline is located in central Wyoming, 65 miles west of the town of Casper. The anticline is 20 miles long and six miles wide lying in the deepest part of the Wind River Basin. The Company has 504.74 gross acres (84.14 net acres) that are included in the 24,088 acre participating area. The unit’s primary operator is Conoco/Phillips.
The Moxa Arch and Other Areas in Southwest Wyoming
The Company has interest in a total of 350 wells in Moxa Arch area. The Niobrara Shale formation (Niobrara) is an oil play in the Rocky Mountain region of the United States. Niobrara is a thick and continuous Cretaceous source rock that ranges from 150 feet to 1,500 feet thick. In October 2011, it began drilling an exploratory oil well located within its Atlantic Rim play. Its projects include Main Fork Unit. The Main Fork Unit (formerly the Table Top Unit) is located on a structural dome in the southwest corner of the prolific Green River Basin, in Summit County, Utah. The dome is overlain by the Wyoming Overthrust Belt and the North Flank Thrust of the Uinta Mountains.
Double Eagle Petroleum Co
Suite 2200, 1675 Broadway
DENVER CO 80202