This increase is primarily attributable to the success of the company's new wells drilled in the Catalina Unit in the Atlantic Rim of Wyoming and increased production in the Pinedale Anticline.
On a per well basis, gross production from the Catalina Unit for August 2008 increased 39 percent 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 percent increase. This increase is due to the new production wells coming on-line and the depressed 2007 results due to wells being shut in for maintenance and low gas prices.
"August represents the 6th consecutive month of record production results,” said Richard Dole, chairman of the board of Double Eagle. “We expect to add 24 new producing wells and up to an additional eight injection wells from our 2008 drilling program in the second half of 2008."
Production from the company’s 2008 Atlantic Rim drilling program is scheduled to begin in late 2008, after the REX pipeline testing has been completed and should coincide with colder weather which historically arrives in the Rockies in the later half of the fourth quarter. With additional pipeline capacity going into service, the pricing environment at that time could be considerably stronger.
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