Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - Escalera Resources Co. | c15035e8vk.htm |
Exhibit 99.1
| 1 Double Eagle Petroleum |
| 2 Corporate Information & Disclaimer This presentation may contain projections and other forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. Any such projections or statements reflect the Company's current views with respect to future events and financial performance. No assurances can be given, however, that these events will occur or that such projections will be achieved and actual results could differ materially from those projected. A discussion of important factors that could cause actual results to differ materially from those projected, such as decreases in oil and gas prices and/or unexpected decreases in oil and gas production, is included in the Company's periodic reports filed with the Securities and Exchange Commission. Cautionary Note to U.S. Investors - The United States Securities and Exchange Commission permits oil and gas companies, in their filings with the SEC, to disclose proved reserves that a company has demonstrated by actual production or conclusive formation tests to be economically and legally producible under existing economic and operating conditions. Effective for the Company's December 31, 20010 Form 10-K, SEC guidelines were changed to also allow for disclosure of "probable" and "possible" reserves. We have used these terms in this presentation. Investors are urged to consider closely the disclosure in our 2010 Form 10-K, File No. 1- 33571, available from us at Double Eagle Petroleum, 1675 Broadway, Suite 2200, Denver, Colorado 80202, Attn Investor Relations. You can also obtain this form from the SEC by calling 1-800-SEC-0330. NASDAQ: DBLEMarket Cap: $101.5M (at $9.08 share price)Shares Outstanding: 11,155,08052 Week Price Range: $3.90 - $12.003 Month Average Volume: 263,816*information quoted above as of March 30, 2011 Corporate Office:1675 Broadway, Suite 2200Denver, CO 80202Contact Information:John Campbell, Investor Relationsjcampbell@eagle-eagle.net303-794-8445www.dble.com |
| 3 Double Eagle Petroleum Co. Overview HIGHLIGHTSProved Reserves (a) 115.1 Bcfe Proved Developed 74.5 Bcfe Proved Undeveloped 40.6 BcfeTotal Proved PV-10 ($ in Millions) $143.7Total Probable and Poss. Reserves (a) 135.0 Bcfe Current Production ~25 Mmcfe/dCash Flow from Operations $25.0Three Year Avg Prod Costs/Mcfe (b) $1.48Reserve Replacement 351%Undeveloped Acreage--net ~ 157,000Total Niobrara Acreage-net ~ 71,000 Per December 31, 2010 year end SEC reserve report prepared by Netherland, Sewell & Associates, Inc.Includes Production Taxes Double Eagle significant plays |
| 4 Building Blocks for Shareholder Value Atlantic Rim CBM Midstream Pipeline |
| 5 Proven Execution Low cost growth through the drill bitF&D Costs three year average of $1.00/ Mcfe;Production Costs, including taxes--$1.22 to $1.74 per McfeG&A Costs equals 10.9% of revenues; among lowest among peer group with revenues < $140 million 2003-2010 SEC Reserves Prepared by Netherland, Sewell & Associates, Inc. as of December 31 for each respective year.Our average gas price per Mcfe realized for the year ended December 31, 2010 is calculated by summing (a) production revenue received from third parties for sale of our gas, included in oil and gas sales on the consolidated statement of operations, (b) settlement of our cash flow hedges included within oil and gas sales on the consolidated statement of operations and (c) realized gain/loss on our financial hedges, which due to accounting rules is included in price risk management activities on the consolidated statement of operations, totaling $5,316 for the year ended December 31. This amount is divided by the total Mcfe volume for the period. We have been able to consistently grow proved developed reserves as a result of our large inventory of drilling locations as well as converting our probable reserves to proved reserves (CHART) (CHART) |
| 6 Low Cost, Reliable Producing Assets |
| 7 Historical drilling activityCatalina Unit14 new production wells drilled through 2004 (pre EIS)33 new production wells drilled in 200723 new production wells drilled in 2008Completion of previously drilled wells-20 wells added 2009 Well enhancements and production improvementsSun Dog Unit14 new wells drilled through 200534 new production wells drilled in 200766 new production wells drilled in 2008Completion of previously drilled wells-20 wells added 2009Well enhancements and improvementDoty Mountain Unit24 new producing wells in 200436 new wells drilled in 2007/2008Well enhancements and improvement2011 Anticipated ActivityDrilling of 20 new CBM wells in Atlantic RimPotential of 1-6 Niobrara test wells The Atlantic Rim |
| 8 Pinedale Anticline QEP Operated PropertiesInterests in over 140 wells through 2010; Participating in ~16 new wells each year350+ Potential future locations Double Eagle Interests: 6-12.5% WI Well Economics EUR per well of ~230 Mmcfe (net)Lifting costs < $1.00 per McfeEstimated drilling and completion--$3.38M gross |
| 9 Midstream Infrastructure Growing source of fee-based revenue that is independent of gas prices Connects Catalina Unit to interstate pipeline 100% owned by Double Eagle125 MMcf/d capacity; currently at 23 MMcf/d Easy tie-in to third party production; 3rd Party transportation agreement in place Own permits to extend north to additional distribution pipelinesLow cost of operations Assures transportation out of Catalina Unit for future development volumes |
| 10 Future Value Realization in Existing Assets Atlantic Rim CBM--620+ future drilling locations in 3 productive units Midstream Pipeline--12.5 miles of transportation assets --20% utilized --Ability to expand north to WIC |
| 11 Building Blocks for Shareholder Value |
| 12 EXPLORATION PLAY-NIOBRARA SHALE Niobrara Basins Double Eagle Acreage Powder River Basin Greater Green River Basin DJ Basin WR Basin Shale thickness up to 1,500' in the Atlantic Rim Heavy natural fracturing based upon prior penetrations 20+ miles of 3D Seismic reprocessed Existing Niobrara production adjacent to Atlantic Rim |
| 13 Growth Strategy Mergers and Acquisitions Merge with private companies to provide diversity in location and commodityAcquire additional exploration acreageCreate economics of scale and take advantage of operational synergiesEnhance institutional awareness and broaden shareholder baseDevelop low cost fields to increase production and reservesExploit Niobrara holdings and Table Top Unit holdingsExplore new opportunitiesFocus on continued operational efficiencies to minimize development, production and g&a costsMaximize return for shareholders Development and Exploration Cost Controls and Execution |
| 14 2011 Planned Drilling and Development Double Eagle plans to drill up to 40 gross wells in 2011$30 million in drilling capex in 2011 with full development planDevelopment is focused on core, low cost fieldsAtlantic Rim DrillingCatalina unit-up to 20 CBM wellsNiobrara test wells expected to be drilledPinedale Anticline-12-18 conventional wells |
| 15 Double Eagle's Value Proposition |
| 16 Questions |
| 17 NIOBRARA SHALE PROJECT Atlantic Rim ESPY SIERRA MADRE Source; Scotia Waterhouse |
| 18 Financial Performance |
| 19 Reserves Source-December 31, 2010 SEC NSAI Reserve Report |
| 20 CBM WELL DATA Typical CBM Well StatisticsDepth 1,500-2,000 ftDays to drill 4-6 DaysEUR (gross) .9-1.2 BCFDrilling and Completion costs $750-$800kAvg. Daily Production/ well 370 Mcf/dSpacing 80-160 acreField suction pressure 8-25 psi Typical CBM Wellbore-11-7 |
| 21 Hedging Position |