CASPER, Wyo., March 31 /PRNewswire-FirstCall/ -- Double Eagle Petroleum Co. (Nasdaq: DBLE) announced today that the Company had record revenues, earnings, production and proved reserves for its year ended December 31, 2004. The table below reports the results for the years ended December 31, 2004 and December 31, 2003. CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share data) Year ended December 31 %Change 2004 2003 Revenues Oil and gas sales 13,058 6,081 Other income 209 57 116.1% 13,267 6,138 Expenses Lease Operating expenses 2,156 1,027 Production taxes 1,645 731 Exploration expense 324 231 Gross Margin 120.3% 9,142 4,149 General and Administrative 1,581 1,250 Interest expense (net) 20 174 Depletion, depreciation, Amortization, impairments 3,063 1,753 Other -- 11 Pre-tax income 365.9% 4,478 961 Cumulative effect of accounting principal change -- 11 Provision for income taxes 450 -- Net Income 314.4% 4,028 972 Net Income per share Basic 235.7% 0.47 0.14 Diluted 235.7% 0.47 0.14 Weighted average shares outstanding Basic 20.5% 8,469,852 7,027,426 Diluted 20.0% 8,599,020 7,163,206 SUMMARY BALANCE SHEET (in thousands except price data) December 31, % Change 2004 2003 Total assets 29.3% 30,969 23,955 Total long-term debt 0 0 Stockholders' equity 25.5% 24,927 19,856 SUMMARY OPERATIONAL DATA % Change 2004 2003 Total production (Mcfe per day) 86.2% 7,270 3,904 Average price per Mcfe 15.0% 4.91 4.27 Netherland, Sewell & Associates. Inc. reviewed approximately 99% of Double Eagle Petroleum Co.'s proved reserves at December 31, 2004 and 2003. Over 49% of the Company's proved reserves are categorized as Proved Developed. Virtually all the Company's growth is attributable to successful development drilling in the Mesa Unit on the Pinedale Anticline and in the coal bed natural gas play in the eastern Washakie Basin. Both areas are in the State of Wyoming. The Company spent over $8.1 million on development of these two plays in 2004. In 2005, the Company plans to spend up to $15 million on continued development of these two plays. The Mesa Unit has been developed on 40-acre spacing, and several wells were drilled on 20-acre spacing in 2004. The 20-acre spacing appears to be economic. Several wells have been estimated to have proved developed and undeveloped reserves on 20-acre spacing. Development drilling will continue in 2005 and 10-acre spacing will be tested. The coal bed natural gas play in the eastern Washakie Basin is being developed in the shallow Mesaverde coal beds. Additional coal bed wells cannot be drilled until the Environmental Impact Study and the local Resource Management Plan are completed. These are currently scheduled to be completed in the Fall of 2005. While we wait for these plans to be completed, we are preparing the infrastructure of compression and water handling facilities to facilitate a large drilling program. The Catalina Unit is being formed to accommodate the drilling of up to 240 additional wells, approximately 100 net wells to us, that will be operated by Double Eagle. In addition, one well is planned to be drilled to approximately 12,000 feet in 2005 to test the deeper objectives at Cow Creek Field. Stephen H. Hollis, President, Double Eagle Petroleum Co., commented: "We were extremely successful in 2004 in drilling development wells, as we were involved in 111 wells and all were successful. In 2005, we hope to be involved in as many successful development wells and are looking forward to a high level of exploration activity in drilling our high risk, high reward wildcat at Christmas Meadows. We believe we have the capital and the projects to continue to grow the Company under current industry conditions. I look forward to reporting our future progress on the drilling front. I also am very pleased with the addition of Sigmund Balaban and Richard Dole to our Board of Directors. As you can see from their resumes below, their credentials are excellent and they will be tremendous additions." Double Eagle Appoints Two New "Independent Directors" On March 24, 2005, the Company appointed Sigmund Balaban and Richard Dole to the Board of Directors. Each of Messrs. Balaban and Dole qualifies as an "independent director" of the Company. Mr. Balaban had served as Senior Vice President / Corporate Secretary of Fujitsu General America, Inc. of Fairfield, New Jersey, from 2000 until July of 2001 when he retired. Mr. Balaban was Vice President, Credit of Teknika Electronics from 1986 to 1992 and Senior Vice President and General Manager of Teknika Electronics from 1992 to 2000. In October 1995, Teknika Electronics changed its name to Fujitsu General America, Inc. Fujitsu General America, Inc. is a subsidiary of Fujitsu General, Ltd., a Japanese multiline manufacturer. Mr. Balaban has served as a director of ARC Wireless Solutions, Inc. since December 1994. Mr. Dole joined Petrosearch Corporation as a Director in July 2004, and assumed the positions of Chairman, President and CEO of the Company upon completion of the reorganization and merger of the Company into Petrosearch Energy Corporation effective December, 2004. Mr. Dole previously served as Vice President and Chief Financial Officer for Burlington Resources International from 1998 to 2000. Since that time he has been active in consulting and financial services. He was a co-founder of Benefits Access Solutions, LLC, a company formed to provide financial services and benefit options to employees and members of corporate organizations. He was also co-founder and managing partner of Innovation Growth Partners, LLC, a firm that provided management and consulting services to early stage companies. Mr. Dole's extensive industry experience includes being National Partner-in-Charge of Business Process Solutions at KPMG. Prior to that he was with Coopers & Lybrand (now PriceWaterhouse Coopers) where he served as Assurance and Business Advisory Partner for nearly 20 years and also served in numerous senior management roles, including National Chairman for the Energy and Natural Resources Industry practices for over 15 years and as the Vice Chairman for the U.S. Process Management business unit. Mr. Dole was also a member of the Board of Directors of Westport Resources Corporation from August 2003 until July 2004 when Westport was merged into Kerr McGee Corp, and served as a member of its audit committee and a designated financial expert. 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 the Southwestern Wyoming 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. SOURCE Double Eagle Petroleum Company CONTACT: Steve Hollis, President of Double Eagle Petroleum Company, +1-307-237-9330 -0- Mar/31/2005 11:00 GMT
Double Eagle Petroleum Reports Record Year in 2004
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