Replies to post #22 on Double Eagle Petroleum (DBLE)

[OilStockReport]

Continued upside has been predicted, thoughts?

Double Eagle Petroleum Co. (DBLE) is an oil and natural gas exploration and production company. Its interests are centered in the Rocky Mountain region. Double also transports gas through its interstate pipeline. Historically Double Eagle has been a coal bed methane producer. Although this is a low cost producer, most of the excitement is about its Niobrara acreage. Double Eagle currently has 71,248 net acres in this area. I would guess not all of this acreage is in liquids, but it will only take one major find to create a large upside to the stock price. Double Eagle has produced an implied value to its company based on reserves, the Niobrara acreage and it pipeline. This implied net asset value per share is:

Low Implied Net Asset Value- $213.5 million or $18.75/share
High Implied Net Asset Value- $481 million or $56.34/share
The largest difference between the net asset values is the Niobrara acreage. Take note, this is Double Eagle's own valuation estimate and should be treated as such.

P/E Ratio- 56.5
Price to Sales- 1.38
Price to Tangible Book- 1.04

[OilStockReport]

This stock has been holding strong for some time now. I called over there about a week ago and spoke with the CEO. They hoping to expand in the Niobrara by next year.