Double Eagle Petroleum (DBLE) Reports Strong Production and Updates Hedging Program

September 4, 2008 1:29 PM EDT

Double Eagle Petroleum Co. (Nasdaq: DBLE) continues to recognize a record level of production, driven primarily by the results from its operated properties in its Catalina Unit in the Atlantic Rim of Wyoming. The Company projects total net production for the month of August 2008 of approximately 750 Mmcfe (approximately 24 Mmcfe per day), an increase of 186% over August 2007 and an increase of 20% over July 2008.

On a per well basis, gross production from the Catalina Unit for August 2008 averaged 538 Mcf per well per day for the 46 wells producing during the month versus 387 Mcf per well per day for the 14 wells producing in August 2007. This represents an increase of 39% over the prior year average per well.

At the Pinedale Anticline, 18 new wells have been completed and brought on-line through August 2008. Based upon operator projections, daily production net to Double Eagle for August 2008 is expected to exceed 7,000 Mcfe per day versus approximately 1,602 Mcfe per day for the same prior year period, representing a 337% increase.

Double Eagle's hedging program is designed to reduce its exposure to the extreme price weakness that currently exists. The Company currently has approximately 50% of its current production priced under various hedging instruments.[SM]

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