##### Table of Contents



UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
 Washington, D.C. 20549
 FORM 10-Q
 (Mark One)
 þ
    
    QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
 For quarterly period ended June 30, 2007
 or
 o
    
    TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
 For the transition period from
 _____ 
to
 _____
 Commission File Number 0-6529
 DOUBLE EAGLE PETROLEUM CO.
  MARYLAND
(State or other jurisdiction of 
incorporation or organization)
    
    83-0214692
(I.R.S. employer
identification no.)
 777 Overland Trail, P.O. Box 766, Casper, Wyoming 82602
 307-237-9330
 
  þ o
  Large accelerated filer o
    
    Accelerated filer þ
    
    Non-accelerated filer o
  o þ
  Class 
Common stock, $.10 par value
    
    Outstanding as of August 1, 2007
9,148,105




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##### 



PagePART I. Financial Information:Item 1. Financial StatementsConsolidated Balance Sheet as of June 30, 2007 (Unaudited) and December 31, 2006
    
    
    2Consolidated Statement of Operations for the Three and Six Months Ended June 30, 2007 and 2006 (Unaudited)
    
    
    3Consolidated Statement of Cash Flows for the Six Months Ended June 30, 2007 and 2006 (Unaudited)
    
    
    4Notes to Consolidated Financial Statements (Unaudited)
    
    
    5Item 2. Managements Discussion and Analysis of Financial Condition and Results of Operations
    
    
    8Item 3. Quantitative and Qualitative Disclosures About Market Risk
    
    
    17Item 4. Controls and Procedures
    
    
    17PART II. Other Information:Item 1A. Risk Factors
    
    
    18Item 4. Submission of Matters to a Vote of Security Holders
    
    
    18Item 6. Exhibits
    
    
    18Signatures
    
    
    19Exhibit 13.1Exhibit 31.1Exhibit 31.2Exhibit 32
   1




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##### Table of Contents



PART I.
    
    FINANCIAL INFORMATION
 
 ITEM 1.
    
    FINANCIAL STATEMENTS
 
 DOUBLE EAGLE PETROLEUM CO.
CONSOLIDATED BALANCE SHEET  (Amounts in thousands of dollars except share and per share data)
 June 30,
    
    
    December 31,2007
    
    
    2006(Unaudited)ASSETSCurrent assets:Cash and cash equivalents
    
    $
    105
    
    
    $
    611Cash held in escrow
    
    
    666
    
    
    
    707Accounts receivable
    
    
    5,252
    
    
    
    5,047Other current assets
    
    
    1,024
    
    
    
    809Total current assets
    
    
    7,047
    
    
    
    7,174Oil and gas properties and equipment, successful efforts method:Developed properties
    
    
    57,740
    
    
    
    53,677Wells in progress
    
    
    20,002
    
    
    
    13,839Gas transportation pipeline
    
    
    5,465
    
    
    
    5,412Undeveloped properties
    
    
    3,147
    
    
    
    3,313Corporate and other assets
    
    
    1,200
    
    
    
    1,02487,554
    
    
    
    77,265Less accumulated depreciation, depletion and amortization
    
    
    (22,824
    )
    
    
    (20,079
    )Net properties and equipment
    
    
    64,730
    
    
    
    57,186Other assets
    
    
    56
    
    
    
    46TOTAL ASSETS
    
    $
    71,833
    
    
    $
    64,406LIABILITIES AND STOCKHOLDERS EQUITYCurrent liabilities:Accounts payable
    
    $
    6,337
    
    
    $
    7,964Accrued expenses
    
    
    1,325
    
    
    
    5,125Accrued production taxes
    
    
    1,400
    
    
    
    1,091Total current liabilities
    
    
    9,062
    
    
    
    14,180Line of credit
    
    
    16,182
    
    
    
    13,221Asset retirement obligation
    
    
    684
    
    
    
    693Deferred tax liability
    
    
    2,951
    
    
    
    3,270Total liabilities
    
    
    28,879
    
    
    
    31,364Stockholders equity:Preferred stock, $0.10 par value; 10,000,000 shares authorized;
no shares issued and outstanding as of
June 30, 2007 and December 31, 2006, respectively
    
    
    
    
    
    
    Common stock, $0.10 par value; 50,000,000 shares authorized;
9,143,104 and 8,641,104 shares issued and outstanding as of
June 30, 2007 and December 31, 2006, respectively
    
    
    914
    
    
    
    864Additional paid-in capital
    
    
    33,381
    
    
    
    23,251Retained earnings
    
    
    8,659
    
    
    
    8,927Total stockholders equity
    
    
    42,954
    
    
    
    33,042TOTAL LIABILITIES AND STOCKHOLDERS EQUITY
    
    $
    71,833
    
    
    $
    64,406
   2




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DOUBLE EAGLE PETROLEUM CO.
CONSOLIDATED STATEMENT OF OPERATIONS  (Amounts in thousands of dollars except share and per share data)
 Three months ended
    
    
    Six months endedJune 30,
    
    
    June 30,
    
    
    June 30,
    
    
    June 30,2007
    
    
    2006
    
    
    2007
    
    
    2006RevenuesOil and gas sales
    
    $
    3,417
    
    
    $
    4,052
    
    
    $
    8,033
    
    
    $
    8,646Transportation revenue
    
    
    226
    
    
    
    
    
    
    
    433
    
    
    
    Other income, net
    
    
    19
    
    
    
    22
    
    
    
    141
    
    
    
    35Total revenues
    
    
    3,662
    
    
    
    4,074
    
    
    
    8,607
    
    
    
    8,681Costs and expensesProduction costs
    
    
    1,686
    
    
    
    808
    
    
    
    3,150
    
    
    
    1,684Production taxes
    
    
    433
    
    
    
    495
    
    
    
    1,000
    
    
    
    1,018Exploration expenses including dry
holes
    
    
    118
    
    
    
    74
    
    
    
    278
    
    
    
    106General and administrative
    
    
    968
    
    
    
    1,085
    
    
    
    1,775
    
    
    
    1,959Depreciation, depletion and
amortization
    
    
    1,361
    
    
    
    1,167
    
    
    
    2,745
    
    
    
    2,164Impairment of equipment and properties
    
    
    91
    
    
    
    
    
    
    
    91
    
    
    
    Total costs and expenses
    
    
    4,657
    
    
    
    3,629
    
    
    
    9,039
    
    
    
    6,931Income (Loss) from operations
    
    
    (995
    )
    
    
    445
    
    
    
    (432
    )
    
    
    1,750Interest (expense) income, net
    
    
    
    
    
    
    (39
    )
    
    
    (155
    )
    
    
    (54
    )Income (Loss) before income taxes
    
    
    (995
    )
    
    
    406
    
    
    
    (587
    )
    
    
    1,696Provision for deferred taxes
    
    
    488
    
    
    
    (142
    )
    
    
    319
    
    
    
    (594
    )NET INCOME (Loss)
    
    $
    (507
    )
    
    $
    264
    
    
    $
    (268
    )
    
    $
    1,102Net income (loss) per common share:Basic
    
    $
    (0.06
    )
    
    $
    0.03
    
    
    $
    (0.03
    )
    
    $
    0.13Diluted
    
    $
    (0.06
    )
    
    $
    0.03
    
    
    $
    (0.03
    )
    
    $
    0.13Weighted average shares outstanding:Basic
    
    
    9,141,609
    
    
    
    8,633,033
    
    
    
    9,080,585
    
    
    
    8,624,908Diluted
    
    
    9,141,609
    
    
    
    8,658,798
    
    
    
    9,080,585
    
    
    
    8,651,211
   3




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DOUBLE EAGLE PETROLEUM CO.
CONSOLIDATED STATEMENT OF CASH FLOWS  (Amounts in thousands of dollars)
 Six months ended June 30,2007
    
    
    2006Cash flows from operating activities:Net income (loss)
    
    $
    (268
    )
    
    $
    1,102Adjustments to reconcile net income to net cash provided
by operating activities:Depreciation, depletion, amortization and accretion of
asset retirement obligation
    
    
    2,759
    
    
    
    2,208Abandonment of non-producing properties
    
    
    29
    
    
    
    14Impairment of equipment and properties
    
    
    91
    
    
    
    Provision for deferred taxes
    
    
    (319
    )
    
    
    594Directors fees paid in stock
    
    
    
    
    
    
    97Non-cash employee stock option expense
    
    
    175
    
    
    
    333Gain on sale of working interest in non-producing property
    
    
    (98
    )
    
    
    Changes in current assets and liabilities:Decrease (Increase) in deposit held in escrow
    
    
    41
    
    
    
    (2,461
    )Decrease (Increase) in accounts receivable
    
    
    (205
    )
    
    
    1,431Decrease (Increase) in other current assets
    
    
    (215
    )
    
    
    (122
    )Increase (Decrease) in accounts payable
    
    
    297
    
    
    
    683Increase (Decrease) in accrued expenses
    
    
    (14
    )
    
    
    2,988Increase (Decrease) in accrued production taxes
    
    
    309
    
    
    
    11NET CASH PROVIDED BY OPERATING ACTIVITIES
    
    
    2,582
    
    
    
    6,878Cash flows from investing activities:Additions of producing properties and equipment
    
    
    (15,867
    )
    
    
    (8,392
    )Additions of corporate and non-producing properties
    
    
    (431
    )
    
    
    (306
    )Proceeds from sale of non-producing properties
    
    
    244
    
    
    
    NET CASH USED IN INVESTING ACTIVITIES
    
    
    (16,054
    )
    
    
    (8,698
    )Cash flows from financing activities:Net proceeds from sale of common stock
    
    
    9,978
    
    
    
    Net borrowings on line of credit
    
    
    2,961
    
    
    
    190Settlement of Options
    
    
    
    
    
    
    (104
    )Exercise of options
    
    
    27
    
    
    
    325NET CASH PROVIDED BY FINANCING ACTIVITIES
    
    
    12,966
    
    
    
    411Change in cash and cash equivalents
    
    
    (506
    )
    
    
    (1,409
    )Cash and cash equivalents at beginning of period
    
    
    611
    
    
    
    1,431CASH AND CASH EQUIVALENTS AT END OF PERIOD
    
    $
    105
    
    
    $
    22Supplemental disclosure of cash and non-cash transactions:Cash paid for interest
    
    $
    317
    
    
    $
    161Interest capitalized
    
    $
    257
    
    
    $
    104Additions to developed properties included in current
liabilities
    
    $
    474
    
    
    $
    1,203Additions to developed properties for retirement obligations
    
    $
    
    
    
    $
    28
   4




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##### Table of Contents



DOUBLE EAGLE PETROLEUM CO.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  (Amounts in thousands of dollars except share and per share data)
 1.
    
    Summary of Significant Accounting Policies
 Basis of presentation
     New accounting pronouncements
   2.
    
    Earnings per share
   5




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##### Table of Contents



For the Three Months Ended June 30,
    
    
    For the Six Months Ended June 30,2007
    
    
    2006
    
    
    2007
    
    
    2006Net income (loss)
    
    $
    (507
    )
    
    $
    264
    
    
    $
    (268
    )
    
    $
    1,102Weighted average shares:Weighted average shares  basic
    
    
    9,141,609
    
    
    
    8,633,033
    
    
    
    9,080,585
    
    
    
    8,624,908Dilution effect of stock options
outstanding at the end of period
    
    
    
    
    
    
    25,765
    
    
    
    
    
    
    
    26,303Weighted average shares  fully
diluted
    
    
    9,141,609
    
    
    
    8,658,798
    
    
    
    9,080,585
    
    
    
    8,651,211Earnings per share:Basic
    
    $
    (0.06
    )
    
    $
    0.03
    
    
    $
    (0.03
    )
    
    $
    0.13Fully diluted
    
    $
    (0.06
    )
    
    $
    0.03
    
    
    $
    (0.03
    )
    
    $
    0.13
  For the Three Months Ended June 30,
    
    
    For the Six Months Ended June 30,2007
    
    
    2006
    
    
    2007
    
    
    2006Options to purchase common stock
    
    
    27,285
    
    
    
    
    
    
    
    34,852
    
    
    
    
 3.
    
    Impairment of Long-Lived Assets
  4.
    
    Income Taxes
      6




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##### Table of Contents



5.
    
    Line of Credit
      6.
    
    Sale of Stock
   7.
    
    Cash Held in Escrow
  8.
    
    Intercompany Note Receivable
   7




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##### Table of Contents



ITEM 2.
    
    MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
 (Amounts in thousands of dollars, except amounts per unit of production)
  FORWARD-LOOKING STATEMENTS
 This Quarterly Report on Form 10-Q includes forward-looking statements as defined by the
Securities and Exchange Commission, or SEC. We make these forward-looking statements in reliance
on the safe harbor protections provided under the Private Securities Litigation Reform Act of 1995.
All statements, other than statements of historical facts, included in this Form 10-K that address
activities, events or developments that we expect, believe or anticipate will or may occur in the
future are forward-looking statements. These forward-looking statements are based on assumptions
which we believe are reasonable based on current expectations and projections about future events
and industry conditions and trends affecting our business. However, whether actual results and
developments will conform to our expectations and predictions is subject to a number of risks and
uncertainties that, among other things, could cause actual results to differ materially from those
contained in the forward-looking statements, including without limitation the Risk Factors set
forth in this Form 10-Q and the following:
 
    
    Our ability to continue to develop our coal bed methane projects in the Atlantic Rim;
    
    Our ability to obtain, or a decline in, oil or gas production, or a decline in oil or gas prices;
    
    Incorrect estimates of required capital expenditures;
    
    Increases in the cost of drilling, completion and gas collection or other costs of production and operations;
    
    Our ability to meet growth projections;
    
    The amount and timing of capital deployment in new investment opportunities;
    
    The volumes of production from our oil and gas development properties, which may be
dependent upon issuance by federal, state, and tribal governments, or agencies thereof, of
drilling, environmental and other permits, and the availability of specialized
contractors, work force, and equipment;
    
    Our future capital requirements and availability of financing;
    
    Our ability to successfully integrate and profitably operate any future acquisitions;
    
    The possibility that we may be required to take impairment charges to reduce the
carrying value of some of our long-lived assets when indicators of impairment emerge;
    
    Numerous uncertainties inherent in estimating quantities of proved oil and gas reserves
and actual future production rates and associated costs;
    
    Our ability to remedy any deficiencies that may be identified in the review of our internal controls;
    
    General economic and political conditions, including tax rates or policies and inflation rates;
    
    Changes in or compliance with laws and regulations, particularly those relating to
taxation, safety and protection of the environment;
    
    Weather and other natural phenomena;
    
    Industry and market changes, including the impact of consolidations and changes in competition;
    
    The effect of accounting policies issued periodically by accounting standard-setting bodies;
    
    The actions of third party co-owners of interest in properties in which we also own an interest;
    
    The cost and effects on our business, including insurance, resulting from terrorist
actions or natural disasters and responses to such actions or events; and
    
    The outcome of any future litigation or similar disputes and the impact on any such
outcome or related settlements.
 We may also make material acquisitions or divestitures or enter into financing transactions. None
of these events can be predicted with certainty and the possibility of their occurring is not taken
into consideration in the forward-looking statements.
 New factors that could cause actual results to differ materially from those described in
forward-looking statements emerge from time to time, and it is not possible for us to predict all
such factors, or the extent to which any such factor or combination of factors may cause actual
results to differ from those contained in any forward-looking statement. We assume no obligation to
update publicly any such forward -looking statements, whether as a result of new information,
future events, or otherwise.
 The following discussion should be read in conjunction with Item 7.  Managements Discussion and
Analysis of Financial Condition and Results of Operations  included in our 2006 Annual Report on
Form 10-K filed with the Securities and Exchange Commission.
  8




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##### Table of Contents



Business Overview and Strategy
   (Amounts in thousands of dollars, except amounts per unit of
production):
 
    
    Average Daily Production
During the three and six month periods ended June 30, 2007, average daily production
decreased 3% to 8,270 Mcfe, and increased 7% to 8,388 Mcfe, as compared to 8,506 and
7,817, during the same prior year periods, respectively. The fluctuations in
production by major operating area are discussed below.
 Atlantic Rim.
  Pinedale Anticline
  Madden Deep Unit
 
    
    Oil and Gas Sales
During the quarter ended June 30, 2007, oil and gas sales decreased to $3,417, as
compared to $4,052 during the same prior year period. Total revenue was impacted
largely by decreased volumes (as discussed above), and lower average gas prices.
During the quarter ended June 30, 2007, average gas prices decreased 13%, from $5.24
to $4.54, due largely to the effects of a two week shut-in of a storage facility for
maintenance (thus constraining the ability to put gas into storage) and pipeline
closures due to repairs during the second quarter 2007.
  9




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OVERVIEW OF FINANCIAL CONDITION AND LIQUIDITY
 Liquidity and Capital Resources
 Overview
   June 30,
    
    
    December 31,2007
    
    
    2006Financial Position SummaryCash and cash equivalents
    
    $
    105
    
    
    $
    611Working capital
    
    $
    (2,015
    )
    
    $
    (7,006
    )Line of credit outstanding
    
    $
    16,182
    
    
    $
    13,221Stockholders equity
    
    $
    42,954
    
    
    $
    33,042RatiosLong-term debt to total capital ratio
    
    
    27.4
    %
    
    
    28.6
    %Total debt to equity ratio
    
    
    37.7
    %
    
    
    40.0
    %
  Cash flow activities
  Six months ended June 30,2007
    
    
    2006Cash provided by (used in):Operating Activities
    
    $
    2,582
    
    
    $
    6,878Investing Activities
    
    
    (16,054
    )
    
    
    (8,698
    )Financing Activities
    
    
    12,966
    
    
    
    411Net change in cash
    
    $
    (506
    )
    
    $
    (1,409
    )
  10




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##### Table of Contents



Off-Balance Sheet Arrangements
   Capital Requirements
    
    
    The South Fillmore exploratory prospect.In the third quarter of 2006, we completed
drilling at the South Fillmore prospect, just north of the Cow Creek Field. We plan to
re-fracture the well during the second half of 2007 and will continue to test the wells
production potential. In July 2007, GMT Exploration Company LLC drilled the SJ Fee 11-9
well, in which we have a 50% working interest, one mile northwest of our initial South
Fillmore well. The well reached a total depth of 8,646 feet with completion expected in the
third quarter 2007.
  11




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##### Table of Contents




    
    The Nevada exploratory prospect.A rig has been contracted, by V.F. Neuhaus, to drill
the Straight Flush #17-1 well in Huntington Valley, Nevada. We currently have a 70%
working interest in the well and anticipate ending up with a 50% working interest.
Drilling began during the third quarter of 2007 and the well is expected to reach a total
depth of 7,000 feet by mid-August.
    
    The Cow Creek Unit Deep #2 development prospect. We began drilling the Cow Creek Unit
Deep #2, a planned Madison test well near our coalbed natural gas production field at Cow
Creek, in 2006 and have drilled to a depth of 9,300 feet. We have identified the crest of
the structure and will steer the well 700 feet to the southwest, drilling to a total depth
of approximately 12,100 feet, to test the Tensleep sandstone and Madison Limestone at the
top of this anticline. We expect to have a rig back on this location during the third
quarter of 2007.
    
    The Christmas Meadows exploratory prospect.We reached the originally planned total
depth of 15,760 feet at the Christmas Meadows exploratory test well in northeast Utah
during the first quarter of 2007. The Table Top Unit #1 well at Christmas Meadows did not
find reservoir rocks with sufficient permeability in the Cretaceous formation. We are
discussing alternatives, including the possibility of drilling to the Nugget Sandstone. We
hold our leasehold interests in the Christmas Meadows area at least until April 2009.
    
    At June 30, 2007, our combined cost on the above projects was $14,427. In the event
that these wells are unsuccessful, we may be required to impair all or a portion of the
costs incurred.
 Line of Credit
       12




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##### Table of Contents



RESULTS OF OPERATIONS
 Three months ended June 30, 2007 compared to the three months ended June 30, 2006
 Oil and gas sales volume and price comparisons
 Three Months Ended June 30,
    
    
    Percent
    
    
    Percent2007
    
    
    2006
    
    
    Volume
    
    
    PriceProduct:
    
    Volume
    
    
    Average Price
    
    
    Volume
    
    
    Average Price
    
    
    Change
    
    
    ChangeGas (mcf)
    
    
    731,411
    
    
    $
    4.40
    
    
    
    750,947
    
    
    $
    5.08
    
    
    
    -3
    %
    
    
    -13
    %Oil (bbls)
    
    
    3,532
    
    
    $
    57.73
    
    
    
    3,849
    
    
    $
    62.66
    
    
    
    -8
    %
    
    
    -8
    %Mcfe
    
    
    752,601
    
    
    $
    4.54
    
    
    
    774,041
    
    
    $
    5.24
    
    
    
    -3
    %
    
    
    -13
    %
  Transportation revenue
  Oil and gas production expenses, depreciation, depletion and amortization
 Three Months Ended June 30,2007
    
    
    2006(in dollars per mcfe)Average price
    
    $
    4.54
    
    
    $
    5.24Production costs
    
    
    2.24
    
    
    
    1.04Production taxes
    
    
    0.58
    
    
    
    0.64Depletion and amortization
    
    
    1.63
    
    
    
    1.26Total operating costs
    
    
    4.45
    
    
    
    2.94Gross margin
    
    $
    0.09
    
    
    $
    2.30Gross margin percentage
    
    
    2
    %
    
    
    44
    %
  13




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##### Table of Contents



General and administrative
  Income taxes
  Six months ended June 30, 2007 compared to the six months ended June 30, 2006
 Oil and gas sales volume and price comparisons
 Six Months Ended June 30,
    
    
    Percent
    
    
    Percent2007
    
    
    2006
    
    
    Volume
    
    
    PriceProduct:
    
    Volume
    
    
    Average Price
    
    
    Volume
    
    
    Average Price
    
    
    Change
    
    
    ChangeGas (mcf)
    
    
    1,474,940
    
    
    $
    5.18
    
    
    
    1,368,844
    
    
    $
    5.99
    
    
    
    8
    %
    
    
    -14
    %Oil (bbls)
    
    
    7,200
    
    
    $
    55.01
    
    
    
    7,685
    
    
    $
    58.35
    
    
    
    -6
    %
    
    
    -6
    %Mcfe
    
    
    1,518,139
    
    
    $
    5.29
    
    
    
    1,414,954
    
    
    $
    6.11
    
    
    
    7
    %
    
    
    -13
    %
   14




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##### Table of Contents



Transportation and other revenue
   Oil and gas production expenses, depreciation, depletion and amortization
 Six Months Ended June 30,2007
    
    
    2006(in dollars per mcfe)Average price
    
    $
    5.29
    
    
    $
    6.11Production costs
    
    
    2.07
    
    
    
    1.19Production taxes
    
    
    0.66
    
    
    
    0.72Depletion and amortization
    
    
    1.67
    
    
    
    1.26Total operating costs
    
    
    4.40
    
    
    
    3.17Gross margin
    
    $
    0.89
    
    
    $
    2.94Gross margin percentage
    
    
    17
    %
    
    
    48
    %
   General and administrative
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##### Table of Contents



Income taxes
  CONTRACTED VOLUMES
  RemainingContractual
    
    
    Daily
    
    
    
    
    
    
    FixedProperty
    
    Volume
    
    
    Production
    
    
    Term
    
    
    Price/McfCatalina
    
    
    
    
    
    
    1,000
    
    
    
    07/06-06/07
    
    
    $
    5.94
    
    
    
    1,000
    
    
    
    07/06-06/07
    
    
    $
    6.32123,000
    
    
    
    1,000
    
    
    
    11/06-10/07
    
    
    $
    5.84700,000
    
    
    
    1,000
    
    
    
    06/07-05/09
    
    
    $
    5.47Company Total
    
    
    823,000
  RemainingContractual
    
    
    Daily
    
    
    
    
    
    
    FixedProperty
    
    Volume
    
    
    Production
    
    
    Term
    
    
    Price/McfCatalina
    
    
    1,460,000
    
    
    
    2,000
    
    
    
    07/07-06/09
    
    
    $
    5.69730,000
    
    
    
    1,000
    
    
    
    07/07-06/09
    
    
    $
    5.84Atlantic Rim
    
    
    730,000
    
    
    
    1,000
    
    
    
    08/07-07/09
    
    
    $
    6.15Pinedale Anticline
    
    
    730,000
    
    
    
    1,000
    
    
    
    07/07-06/09
    
    
    $
    6.41Company Total
    
    
    3,650,000
  CRITICAL ACCOUNTING POLICIES AND ESTIMATES
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##### Table of Contents



ITEM 3.
    
    QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
 Interest Rate Risks
   Commodity Price Risks
   
 ITEM 4.
    
    CONTROLS AND PROCEDURES
     17




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##### Table of Contents



PART II.
    
    OTHER INFORMATION
 
 ITEM 1A.
    
    RISK FACTORS
  
 ITEM 4.
    
    SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
  Sigmund
    
    Roy G.
    
    Richard
    
    Stephen H.Balaban
    
    Cohee
    
    Dole
    
    HollisClass
    
    Class I
    
    Class II
    
    Class III
    
    Class IIIOne-year term
    
    Two-year term
    
    Three-year term
    
    Three-year termexpiring at the
    
    expiring at the
    
    expiring at the
    
    expiring at theAnnual Meeting
    
    Annual Meeting
    
    Annual Meeting
    
    Annual Meetingfor the fiscal
    
    for the fiscal
    
    for the fiscal
    
    for the fiscalyear ending
    
    year ending
    
    year ending
    
    year endingTerm
    
    12/31/2007.
    
    12/31/2008.
    
    12/31/2009.
    
    12/31/2009.Votes For
    
    7,693,053
    
    7,712,148
    
    7,677,527
    
    7,280,276Votes Against/Withheld
    
    461,673
    
    442,578
    
    477,199
    
    874,450
  
 ITEM 6.
    
    EXHIBITS
  Exhibit Number and Description:
 10.1
    
    Debt Modification Agreement, effective July 1, 2007, between Double Eagle Petroleum Co. and
American National Bank (incorporated by reference from Exhibit 1.01 of the Companys Current
Report on Form 8-K, filed on July 5, 2007).13.1
    
    S-15 to S-21 of Prospectus Supplement (to Prospectus dated December 15, 2006) filed on June
29, 2007.31.1
    
    Certification of Chief Executive Officer pursuant to Rule 13a-14(a) and Rule 15a-14(a) of the
Securities Exchange Act, as amended.31.2
    
    Certification of Chief Financial Officer pursuant to Rule 13a-14(a) and Rule 15a-14(a) of the
Securities Exchange Act, as amended.32
    
    Certification of Chief Executive Officer and Chief Financial Officer Pursuant to 18 U.S.C.
Section 1350, as Adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
 
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##### Table of Contents



SIGNATURES
  DOUBLE EAGLE PETROLEUM CO.
(Registrant)Date:  August 8, 2007
    By:
    /s/   Lonnie R. BrockLonnie R. BrockChief Financial Officer  Exhibit Number
    
    DescriptionExhibit 10.1
    
    Debt Modification Agreement, effective July 1, 2007,
between Double Eagle Petroleum Co. and American National
Bank (incorporated by reference from Exhibit 1.01 of the
Companys Current Report on Form 8-K, filed on July 5,
2007).Exhibit 13.1
    
    S-15 to S-21 of Prospectus Supplement (to Prospectus
dated December 15, 2006) filed on June 29, 2007.Exhibit 31.1
    
    Certification of Chief Executive Officer pursuant to
Rule 13a  14(a) and Rule 15a  14(a) of the
Securities Exchange Act, as amended.Exhibit 31.2
    
    Certification of Chief Financial Officer pursuant to
Rule 13a  14(a) and Rule 15a  14(a) of the
Securities Exchange Act, as amended.Exhibit 32
    
    Certification of Chief Executive Officer and Chief
Financial Officer pursuant to 18 U.S.C. Section 1350, as
adopted pursuant to Section 906 of the Sarbanes  Oxley
Act of 2002.
  19