Double Eagle Petroleum Co. reported the closing of the company’s purchase of oil and gas assets in the Atlantic Rim area. The purchase price was $8.4 million, with an effective date of January 1, 2010.
Double Eagle Petroleum Co. acquired acreage in three separate areas from SM Energy. The company purchased a 3.08% working interest in the Catalina field, a 12.6% working interest in the Sun Dog field and a 1.15% working interest in the Doty Mountain field.
Double Eagle Petroleum Co. already owned portions of these three fields prior to the deal, and now owns 72.4%, 21.5% and 18% of the Catalina, Sun Dog and Doty Mountain fields, respectively.
Double Eagle Petroleum Co. acquired 9 billion cubic feet equivalent of proved developed reserves of natural gas in the acquisition. This equals $0.93 per million cubic feet of proved developed reserves.
Double Eagle Petroleum Co. funded the acquisition with the company’s cash reserves, and also drew down $6 million of its credit facility. The company still has $14 million of additional capacity on its credit line.
Double Eagle Petroleum Co. said that it purchased the oil and gas properties because the areas have additional oil and gas potential. The company estimates that the three areas have an additional 620 gross drilling locations to develop.
For more information on the company, go to http://www.dble.us/Home