Double Eagle Petroleum (DBLE)

[tr8dervic]

I saw that Seeking Alpha article earlier. Worst case scenario for DBLE, imo, is it will be dead money until NG prices pick up. In the meantime I feel it is a very safe investment and I will keep a modest core in it and add a few now and then if it gets spanked hard on any given day. Vic

[OilStockReport]

Double Eagle Petroleum Company (DBLE) is a company with a market capitalization of just under $49 million. Double Eagle has managed to keep its total producing and finding down with the big boys.

Nearly all of the company’s production is currently coming from the Atlantic Rim and Pinedale Anticline plays in Wyoming. Both plays appear to still have plenty of future growth remaining. However, the true long-term catalyst for this stock may be its 70,000 net acres in the Niobrara Shale play.

Other major players such as EOG Resources (EOG), Noble Energy (NBL), and MDU Resources (MDU) have already staked their claims in this up and coming play that many are comparing to the Bakken and Marcellus shale plays. As promising as this stock may sound, caution should be used due to the size of the company. This is not where you want to be if natural gas prices stay depressed for a long period of time.

[tr8dervic]

DBLE link to website:

http://www.dble.com/Home

[tr8dervic]

DBLE Link to latest presentation:

http://www.sec.gov/Archives/edgar/data/29834/000095012310052569/c01609exv99w1.htm

[tr8dervic]

DBLE is a mid continent natural gas producer. Their finding costs are close to $1 per Mcf making them profitable even in a low natgas price environment. Q1/10 they earned .47 per share. Their production should expand steadily for several years due to a multi year drilling inventory. Low side NAV for them is 9+ per share.

They are a prime beneficiary of the recently completed Rockies Express Pipeline (REX). This has boosted gas prices dramatically in Rockies/Mid continent area.

Vic