Double Eagle Petroleum Co.announced that the Company’s Niobrara exploration appraisal well 41-12N had an initial 24 hour production rate of 467 barrels of oil equivalent (BOE). The production was composed of 70% 40 degree API oil and the rest natural gas. The aforementioned initial production rate does not include any potential production from the deeper Frontier and Dakota gas formations, which have already been perforated and fraced. The Company is waiting additional permitting to begin production from these deeper gas formations.
Currently,the Company is installing a pumping unit on the well. As an appraisal well, the Company performed numerous downhole tests during drilling and completion to better understand the characteristics of the various formations. Investors are cautioned that, while the Company is pleased by the initial 24 hour rate, the sustainable rate of production will not be known until the well has produced for a longer period.
The 41-12N well is the only Niobrara production well within approximately 25 miles and is near two Companyoperated Dakota producing gas wells that may be candidates for recompletions in the Niobrara. The Company owns a 95% interest in the 41-12N well. The Company currently has approximately 37,000 net acres (69,000 gross acres) in the Atlantic Rim area.
Production for 2012
For the year ended December 31, 2012, the Company realized production of 10.5 Bcfe as compared to 9.3 Bcfe for the same prior year period, a 13% increase. For additional information regarding 2012 production and financial results, see the Company’s additional press release issued.
Main Fork Unit Exploration Update
The Company and its partners continue to make progress on obtaining required permits and approvals for the field development plan and to perform 3-D seismic over certain parts of the Main Fork Unit in Utah. Currently, the plan calls for the seismic shoot to occur in the summer of 2013.
Double Eagle continues to aggressively pursue strategic mergers and asset acquisitions that management believes will improve shareholder value. The Company is also assessing all its non-operated production and undeveloped acreage to evaluate opportunities for joint venture, pooling of interests, farm outs or dispositions.
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