Double Eagle Reports Project Status
CASPER, Wyo., Jan. 16 /PRNewswire/ -- Double Eagle Petroleum and Mining Co. (Nasdaq: DBLE - news, DBLEW - news)
announced today progress on work at Madden, Pinedale, Christmas Meadows and Cow Creek Areas.
Madden Fort Union: Work on the Leonard 1-24 has resulted in the completion of a zone in the lower Fort Union Formation at a
depth of 6,988 to 6,992 feet. The zone has tested 200 to 400 cubic feet per day. Double Eagle has 34.95% working interest before
payout and 26.21% after payout. We were unable to complete in a lower zone at 7,150 feet that had tested 2,272,000 cubic feet
per day in 1983, because the 1983 completion failed to properly cement. As a result, our attempts to isolate the gas zone without
excessive water were unsuccessful. Double Eagle is evaluating drilling an offset well to produce this zone. The workover rig is
currently moving to the Lloyd 1-26 well, in which we have 36.04% working interest, to finish our completion effort with a fracture
stimulation.
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Quarterly Report (SEC form 10QSB)
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
RESULTS OF OPERATIONS
Current quarter as compared to the corresponding quarter of one year ago
The Company had net income of $188,430 for the current quarter as compared to net income of $4,623 for the corresponding
quarter of one year ago. Oil and gas sales increased by 103% as a result of an approximate 10% increase in production volume
and an increase in oil and gas pricing. Production costs, taxes and depreciation and depletion increased 48% as a result of the
increased production volume and increased revenues.
Sales of non-producing leases decreased by $4,125 and exploration expenses increased by $8,660. General and administrative
expenses increased by $8,762 or 8.5%.
FINANCIAL CONDITION
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During the current quarter, the Company utilized an additional $250,000 from its existing line of credit to proceed with the
completion of the Leonard 1-24 and Lloyd 1-26 wells. The Company also reduced its accounts payable by $176,000 during the
current quarter. During the quarter, the Company received $20,000 from the exercise of 10,000 options at $2.00 per share and,
$10,500 from the exercise of 7,000 Underwriter's warrants to purchase common stock and additional warrants. The Underwriters
warrants were issued in connection with the Company's public offering in 1996. In addition, the Company received net proceeds of
$24,210 from the exercise of publicly traded warrants after the payment of transfer agent expenses. Overall, the Company's
working capital position improved by $135,000 as a result of its favorable results of operations for the current quarter.
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