##### 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 March 31, 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
    
    83-0214692(State or other jurisdiction of
    
    (I.R.S. employerincorporation or organization)
    
    identification no.)
 777 Overland Trail, P.O. Box 766, Casper, Wyoming 82602
 307-237-9330
 
 þ o
  o þ o
 o þ
  Class
    
    Outstanding as of May 1, 2007Common stock, $.10 par value
    
    9,141,104




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##### 



PagePART I. Financial Information:Item 1. Financial StatementsConsolidated Balance Sheet as of March 31, 2007 (Unaudited)
and December 31, 2006
    
    
    2Consolidated Statement of Operations for the Three Months
Ended March 31, 2007 and 2006 (Unaudited)
    
    
    3Consolidated Statement of Cash Flows for the Three Months
Ended March 31, 2007 and 2006 (Unaudited)
    
    
    4Notes to Consolidated Financial Statements
    
    
    5Item 2. Managements Discussion and Analysis of Financial Condition
and Results of Operations
    
    
    8Item 3. Quantitative and Qualitative Disclosures About Market Risk
    
    
    14Item 4. Controls and Procedures
    
    
    15PART II. Other Information:Item 1A. Risk Factors
    
    
    15Item 6. Exhibits
    
    
    15Signatures
    
    
    16Certification of CEO Pursuant to Rule 13a-14(a)Certification of CFO Pursuant to Rule 13a-14(a)Certification of CEO & CFO Pursuant to 18 U.S.C. Section 1350
  1




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ITEM 1. FINANCIAL STATEMENTS
 DOUBLE EAGLE PETROLEUM CO.
 
 CONSOLIDATED BALANCE SHEET
 (Amounts in thousands of dollars except share and per share data)
 March 31,
    
    
    December 31,2007
    
    
    2006(Unaudited)ASSETSCurrent assets:Cash and cash equivalents
    
    $
    323
    
    
    $
    611Cash held in escrow
    
    
    1,319
    
    
    
    707Accounts receivable
    
    
    5,030
    
    
    
    5,047Other current assets
    
    
    859
    
    
    
    809Total current assets
    
    
    7,531
    
    
    
    7,174Oil and gas properties and equipment, successful efforts method:Developed properties
    
    
    55,458
    
    
    
    53,677Wells in progress
    
    
    17,821
    
    
    
    13,839Gas transportation pipeline
    
    
    5,436
    
    
    
    5,412Undeveloped properties
    
    
    3,077
    
    
    
    3,313Corporate and other assets
    
    
    1,120
    
    
    
    1,02482,912
    
    
    
    77,265Less accumulated depreciation, depletion and amortization
    
    
    (21,464
    )
    
    
    (20,079
    )Net properties and equipment
    
    
    61,448
    
    
    
    57,186Other assets
    
    
    46
    
    
    
    46TOTAL ASSETS
    
    $
    69,025
    
    
    $
    64,406LIABILITIES AND STOCKHOLDERS EQUITYCurrent liabilities:Accounts payable
    
    $
    5,015
    
    
    $
    7,964Accrued expenses
    
    
    6,404
    
    
    
    5,125Accrued production taxes
    
    
    1,195
    
    
    
    1,091Total current liabilities
    
    
    12,614
    
    
    
    14,180Line of credit
    
    
    8,901
    
    
    
    13,221Asset retirement obligation
    
    
    675
    
    
    
    694Deferred tax liability
    
    
    3,439
    
    
    
    3,269Total liabilities
    
    
    25,629
    
    
    
    31,364Stockholders equity:Common stock, $0.10 par value; 50,000,000 shares authorized;
9,141,104 and 8,641,104 shares issued and outstanding as of
March 31, 2007 and December 31, 2006, respectively
    
    
    914
    
    
    
    864Additional paid-in capital
    
    
    33,320
    
    
    
    23,251Retained earnings
    
    
    9,162
    
    
    
    8,927Total stockholders equity
    
    
    43,396
    
    
    
    33,042TOTAL LIABILITIES AND STOCKHOLDERS EQUITY
    
    $
    69,025
    
    
    $
    64,406
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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 March 31,2007
    
    
    2006RevenuesOil and gas sales
    
    $
    4,616
    
    
    $
    4,593Transportation revenue
    
    
    207
    
    
    
    Other income, net
    
    
    121
    
    
    
    14Total revenues
    
    
    4,944
    
    
    
    4,607Costs and expensesProduction costs
    
    
    1,465
    
    
    
    876Production taxes
    
    
    567
    
    
    
    523Exploration expenses including dry hole costs
    
    
    160
    
    
    
    32General and administrative
    
    
    808
    
    
    
    874Depreciation, depletion and amortization
    
    
    1,384
    
    
    
    997Total costs and expenses
    
    
    4,384
    
    
    
    3,302Income from operations
    
    
    560
    
    
    
    1,305Interest expense, net
    
    
    (155
    )
    
    
    (15
    )Income before income taxes
    
    
    405
    
    
    
    1,290Provision for deferred income taxes
    
    
    (170
    )
    
    
    (452
    )NET INCOME
    
    $
    235
    
    
    $
    838Net income per common share:Basic
    
    $
    0.03
    
    
    $
    0.10Fully diluted
    
    $
    0.03
    
    
    $
    0.10Weighted average shares outstanding:Basic
    
    
    9,018,882
    
    
    
    8,616,693Fully diluted
    
    
    9,026,483
    
    
    
    8,655,616
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DOUBLE EAGLE PETROLEUM CO.
 
 CONSOLIDATED STATEMENT OF CASH FLOWS
 (Amounts in thousands of dollars)
  Three Months Ended March 31,2007
    
    
    2006Cash flows from operating activities:Net income
    
    $
    235
    
    
    $
    838Adjustments to reconcile net income to net cash provided
by operating activities:Depreciation, depletion, amortization and accretion
    
    
    1,390
    
    
    
    997Abandonment of non-producing properties
    
    
    24
    
    
    
    8Provision for deferred income taxes
    
    
    170
    
    
    
    452Non-cash employee stock option expense
    
    
    73
    
    
    
    112Gain on sale of working interest in non-producing property
    
    
    (98
    )
    
    
    Changes in current assets and liabilities:Increase (decrease) in deposit held in escrow
    
    
    (612
    )
    
    
    Decrease in accounts receivable
    
    
    17
    
    
    
    1,832(Increase) decrease in other current assets
    
    
    (50
    )
    
    
    83(Decrease) increase in accounts payable
    
    
    (3,229
    )
    
    
    42Increase (decrease) in accrued expenses
    
    
    1,564
    
    
    
    (867
    )Increase in accrued production taxes
    
    
    104
    
    
    
    21NET CASH (USED IN) PROVIDED BY OPERATING ACTIVITIES
    
    
    (412
    )
    
    
    3,518Cash flows from investing activities:Additions of producing properties and equipment
    
    
    (5,672
    )
    
    
    (5,330
    )Additions of corporate and non-producing properties
    
    
    (174
    )
    
    
    (275
    )Proceeds from sale of non-producing properties
    
    
    244
    
    
    
    NET CASH USED IN INVESTING ACTIVITIES
    
    
    (5,602
    )
    
    
    (5,605
    )Cash flows from financing activities:Net proceeds from sale of common stock
    
    
    10,046
    
    
    
    Net (repayments) borrowings on line of credit
    
    
    (4,320
    )
    
    
    1,500Exercise of options
    
    
    
    
    
    
    293NET CASH PROVIDED BY FINANCING ACTIVITIES
    
    
    5,726
    
    
    
    1,793Change in cash and cash equivalents
    
    
    (288
    )
    
    
    (294
    )Cash and cash equivalents at beginning of period
    
    
    611
    
    
    
    1,431CASH AND CASH EQUIVALENTS AT END OF PERIOD
    
    $
    323
    
    
    $
    1,137Supplemental disclosure of cash and non-cash transactions:Cash paid for interest
    
    $
    192
    
    
    $
    69Interest capitalized
    
    $
    27
    
    
    $
    54Additions to developed properties included in current liabilities
    
    $
    6,178
    
    
    $
    1,460Stock option expense
    
    $
    73
    
    
    $
    112
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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 PoliciesBasis of presentationThe accompanying unaudited interim consolidated financial statements were prepared by Double
Eagle Petroleum Co. (Double Eagle or the Company) pursuant to the rules and regulations of
the Securities and Exchange Commission (SEC). Certain information and note disclosures
normally included in the annual consolidated financial statements prepared in accordance with
accounting principles generally accepted in the United States of America have been condensed or
omitted as allowed by such rules and regulations. These consolidated financial statements
include all of the adjustments, which, in the opinion of management, are necessary for a fair
presentation of the financial position and results of operations. All such adjustments are of a
normal recurring nature only. The results of operations for the interim periods are not
necessarily indicative of the results to be expected for the full fiscal year.Certain amounts in the 2006 financial statements were reclassified to conform to the 2007
unaudited consolidated financial statement presentation.The accounting policies followed by the Company are set forth in Note 1 to the Companys
consolidated financial statements in the Form 10-K for the year ended December 31, 2006 and are
supplemented throughout the notes to this quarterly report on Form 10-Q.The interim consolidated financial statements presented herein should be read in conjunction
with the financial statements and notes thereto for the year ended December 31, 2006, included
in the Form 10-K filed with the SEC.New accounting pronouncementsIn September 2006, the Financial Accounting Standards Board (FASB) issued Statement of
Financial Accounting Standards No. 157  Fair Value Measurements (SFAS 157). The
statement defines fair value, establishes a framework for measuring fair value in generally
accepted accounting principles (GAAP), and expands disclosures about fair value measurements.
This Statement is effective for financial statements issued for fiscal years beginning after
November 15, 2007, and interim periods within those fiscal years. The adoption of SFAS 157 is
not expected to have a material effect on the Companys financial position, results of
operations or cash flows.In February 2007, the FASB issued Statement of Financial Accounting Standards No. 159 
The Fair Value Option for Financial Assets and Financial Liabilities  Including
an amendment of FASB Statement No. 115 (SFAS 159). The statement permits companies to choose
to measure many financial instruments and certain other items at fair value that are not
currently required to be measured at fair value. The objective of SFAS 159 is to provide
opportunities to mitigate volatility in reported earnings caused by measuring related assets and
liabilities differently without having to apply hedge accounting provisions. SFAS 159 also
establishes presentation and disclosure requirements designed to facilitate comparisons between
companies that choose different measurement attributes for similar types of assets and
liabilities. SFAS 159 will be effective for fiscal years beginning after November 15, 2007. The
adoption of SFAS 159 is not expected to have a material effect on the Companys financial
position, results of operations or cash flows.2.
    
    Earnings per shareBasic earnings per share (EPS) is calculated by dividing net income (the numerator) by the
weighted average number of shares of common stock outstanding during the period (the
denominator). Fully diluted earnings per share incorporates the dilutive impact of outstanding
stock options by including the effect of outstanding vested and unvested options in the average
number of common shares outstanding during the period.
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For the Three Months Ended March 31,2007
    
    
    2006Net income
    
    $
    235
    
    
    $
    838Weighted average shares:Weighted average shares  basic
    
    
    9,018,882
    
    
    
    8,616,693Dilution effect of stock options
outstanding at the end of period
    
    
    7,601
    
    
    
    38,923Weighted average shares  fully diluted
    
    
    9,026,483
    
    
    
    8,655,616Earnings per share:Basic
    
    $
    0.03
    
    
    $
    0.10Fully diluted
    
    $
    0.03
    
    
    $
    0.10
  For the Three Months Ended March 31,2007
    
    
    2006Options to purchase common stock
    
    
    37,260
    
    
    
    
 3.
    
    Impairment of Long-Lived AssetsThe Company reviews the carrying values of its long-lived assets whenever events or changes in
circumstances indicate that such carrying values may not be recoverable. If, upon review, the
sum of the undiscounted pretax cash flows is less than the carrying value of the asset group,
the carrying value is written down to estimated fair value. Individual assets are grouped for
impairment purposes at the lowest level for which there are identifiable cash flows that are
largely independent of the cash flows of other groups of assets, generally on a field-by-field
basis. The fair value of impaired assets is determined based on quoted market prices in active
markets, if available, or upon the present values of expected future cash flows using discount
rates commensurate with the risks involved in the asset group. The long-lived assets of the
Company, which are subject to periodic evaluation, consist primarily of oil and gas properties
and undeveloped leaseholds.4.
    
    Income TaxesAt March 31, 2007, the Company had a net operating loss carry forward for regular income
tax reporting purposes of approximately $12.0 million that will begin expiring in 2021.
Although Double Eagle is required to record income tax expense for financial reporting purposes,
the Company does not anticipate any payments of current tax liabilities in the near future.The Company adopted FASB Interpretation No. 48, Accounting for Uncertainty in Income Taxes, an
interpretation of FASB Statement No. 109 (FIN 48), on January 1, 2007. The adoption of this
statement had no impact on the Companys consolidated financial statements. We expect no
material changes to unrecognized tax positions within the next 12 months.The Company is subject to U.S. federal income tax and income tax from multiple state
jurisdictions. The tax years remaining subject to examination by tax authorities are fiscal
years 2002 through 2005.The Company recognizes interest and penalties related to uncertain tax positions in income tax
expense. As of March 31, 2007, the Company made no provisions for interest or penalties related
to uncertain tax positions.
 6




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5.
    
    Line of CreditEffective August 1, 2006, the Company entered into a $50 million revolving line of credit
collateralized by oil and gas producing properties, replacing the previously existing revolving
line of credit. The borrowing base is $25 million and all outstanding balances on the line of
credit mature on July 31, 2010.In January 2007, as described in Note 6, the net proceeds received from a public offering were
used to pay down the outstanding balance on the Companys revolving line of credit. The $8,901
outstanding balance on the line of credit at March 31, 2007 was used to fund capital
expenditures. The interest rate, calculated in accordance with the agreement at 1.125% below
the posted Wall Street Journal Prime Rate, was 7.125%, as compared to 7.25% in the same prior
year period.The Company is subject to certain financial and non-financial covenants with respect to the
above credit facility, including a requirement to maintain a current ratio, plus the line of
credit availability, of at least 1.0 to 1.0. As of March 31, 2007, the Company was in
compliance with all such covenants. Should any of the covenants with respect to the above
credit facility be violated, and, if the Company was unable to negotiate a waiver or amendment
thereof, the lender would have the right to declare an event of default, terminate the remaining
commitment and accelerate all principal and interest outstanding.For the quarter ended March 31, 2007 and 2006, interest expense with respect to the above credit
lines totaled $182 and $69, respectively, and capitalized interest totaled $27 and $54,
respectively.6.
    
    Sale of Common StockOn January 23, 2007, the Company completed a public offering of 500,000 shares of Common Stock
at a price to the public of $21.55 per share. Proceeds from the offering were approximately $10
million, after deducting underwriter fees and other offering expenses. The net proceeds from
this offering were used to pay down the outstanding indebtedness on the Companys revolving line
of credit.7.
    
    Cash Held in EscrowThe Company has received deposits representing partial prepayments of the expected total capital
expenditures from third party working interest owners in the Christmas Meadows exploration
project. The unexpended portion of the deposits at March 31, 2007 totaled $1,319.
 7




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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:
 
    
    The cost and effects on our business of weather and other natural phenomena;
    
    General economic and political conditions, including governmental energy policies, tax
rates or policies and inflation rates;
    
    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;
    
    Our ability to meet growth projections;
    
    Our ability to obtain, or a decline in, oil or gas productions;
    
    The issuance of drilling, environmental and other permits, by federal, state, and
tribal governments, or agencies thereof, may affect the volume of production from our
developed properties;
    
    Incorrect estimates of required capital expenditures;
    
    The amount and timing of capital deployment in new investment opportunities;
    
    Our ability to remedy any deficiencies that may be identified in the review of our internal controls; and
    
    The outcome of any future litigation or similar disputes and the impact on any such
outcome or related settlements.
 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.
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Business Overview and Strategy
    
    
    Average Daily ProductionDuring the quarter ended March 31, 2007, average daily production increased 19% to
8,506 Mcfe, as compared to 7,121 Mcfe during the same prior year period. The increase
in production is due largely to increased production at the Atlantic Rim and Madden
Deep, which was offset partially by decreased production at Pinedale.Atlantic Rim.During the quarter ended March 31, 2007, average daily production at
the Atlantic Rim increased 24% to 4,677 Mcfe, as compared to 3,767 Mcfe during the
same prior year period, due largely to increased production at Cow Creek and the
recognition of revenues at Doty Mountain and Sun Dog Units. Average daily production
at Cow Creek increased 8% to 4,054 Mcfe, as compared to 3,767 during the same prior
year period. The Cow Creek Field experienced operational issues due to severe winter
weather, which resulted in workovers during the first quarter of 2007 and the
beginning of the second quarter. Thus, we expect production at Cow Creek to further
increase when current workovers are completed during the second quarter of 2007. We
began receiving and selling our share of Doty Mountain production in mid-2006.
Currently, we are in an under-produced position for (i) prior years production at the
Doty Mountain Unit; and (ii) prior years and current year production at the Sun Dog
Unit. We believe we can make up the entire balance over the course of the next twelve
months.Pinedale Anticline. During the quarter ended March 31, 2007, average daily production
at Pinedale decreased 5% to 2,557 Mcfe, as compared to 2,681 Mcfe in the prior year.
While the Mesa decreases are the result of normal production declines, the operator at
the Mesa Units has informed us that it intends to continue new drilling projects in
2007 to better maintain or increase production levels. There are also additional
wells to be hooked up when winter grazing regulations allow in 2007.Madden Deep Unit. During the quarter ended March 31, 2007, our average daily net
production at the Madden Deep Unit was 652 Mcfe. Through unitization we acquired an
interest in the Madden Sour Gas Participating Area in the Madden Deep Unit in late
2006, as well as an interest in the Lost Cabin Gas Processing Plant, at an initial
cost of approximately $3.5 million.
    
    Oil and Gas SalesDuring the quarter ended March 31, 2007, oil and gas sales increased to $4,616, as
compared to $4,593 during the same prior year period. Total revenue was impacted
largely by increased volumes (as discussed above), offset almost entirely by lower
average gas prices. During the quarter ended March 31, 2007, average gas prices
decreased 16%, from $7.17 to $6.03, due primarily to the effects of the severe
hurricane season in late 2005.
 OVERVIEW OF FINANCIAL CONDITION AND LIQUIDITY
 Liquidity and Capital Resources
 Overview
  9




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March 31,
    
    December 31,2007
    
    2006Financial Position SummaryCash and cash equivalents
    
    $
    323
    
    
    $
    611Working capital
    
    $
    (5,083
    )
    
    $
    (7,006
    )Line of credit outstanding
    
    $
    8,901
    
    
    $
    13,221Stockholders equity
    
    $
    43,396
    
    
    $
    33,042RatiosLong-term debt to total capital ratio
    
    
    17.0
    %
    
    
    28.6
    %Total debt to equity ratio
    
    
    20.5
    %
    
    
    40.0
    %
  Cash flow activities
  Three months ended March 31,2007
    
    
    2006Cash provided by (used in):Operating Activities
    
    $
    (412
    )
    
    $
    3,518Investing Activities
    
    
    (5,602
    )
    
    
    (5,605
    )Financing Activities
    
    
    5,726
    
    
    
    1,793Net change in cash
    
    $
    (288
    )
    
    $
    (294
    )
    Off-Balance Sheet Arrangements
  10




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##### Table of Contents



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 and are
currently testing the wells production potential.
    
    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. At 9,922 feet, we ran casing and are currently reworking the seismic data
with the additional well data compiled. We expect to complete the drilling and testing of
the Cow Creek Unit Deep #2 during 2007.
    
    The Christmas Meadows exploratory prospect.We reached the originally planned total
depth 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 plan to contract a
larger rig and continue to drill to test the Nugget sandstones at approximately 18,000
feet. We will also consider the possibility of attempting to drill to test the Madison
carbonates at approximately 23,000 feet.
    
    At March 31, 2007, our combined cost on the above three projects was $13,768. 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
    11




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##### Table of Contents



RESULTS OF OPERATIONS
 Quarter ended March 31, 2007 compared to the quarter ended March 31, 2006
 Oil and gas sales volume and price comparisons
 Three Months Ended March 31,
    
    Percent
    
    Percent2007
    
    2006
    
    Volume
    
    PriceVolume
    
    Average Price
    
    Volume
    
    Average Price
    
    Change
    
    ChangeProduct:Gas (mcf)
    
    
    743,529
    
    
    $
    5.95
    
    
    
    617,897
    
    
    $
    7.10
    
    
    
    20
    %
    
    
    -16
    %Oil (bbls)
    
    
    3,668
    
    
    $
    52.40
    
    
    
    3,836
    
    
    $
    54.04
    
    
    
    -4
    %
    
    
    -3
    %Mcfe
    
    
    765,537
    
    
    $
    6.03
    
    
    
    640,913
    
    
    $
    7.17
    
    
    
    19
    %
    
    
    -16
    %
  Transportation and other revenue
   12




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Oil and gas production expenses, depreciation, depletion and amortization
 Three Months Ended March 31,2007
    
    
    2006(in dollars per mcfe)Average price
    
    $
    6.03
    
    
    $
    7.17Production costs
    
    
    1.86
    
    
    
    1.36Production taxes
    
    
    0.74
    
    
    
    0.82Depletion and amortization
    
    
    1.70
    
    
    
    1.43Total operating costs
    
    
    4.30
    
    
    
    3.61Gross margin
    
    $
    1.73
    
    
    $
    3.56Gross margin percentage
    
    
    29
    %
    
    
    50
    %
   General and administrative
  Income taxes
  13




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CONTRACTED VOLUMES
  RemainingContractual
    
    
    Daily
    
    
    
    
    FixedProperty
    
    Volume
    
    
    Production
    
    
    Term
    
    Price/McfCow Creek
    
    
    91,000
    
    
    
    1,000
    
    
    07/06 - 06/07
    
    $
    5.9491,000
    
    
    
    1,000
    
    
    07/06 - 06/07
    
    $
    6.32214,000
    
    
    
    1,000
    
    
    11/06 - 10/07
    
    $
    5.84Company Total
    
    
    396,000
  RemainingContractual
    
    
    Daily
    
    
    
    
    FixedProperty
    
    Volume
    
    
    Production
    
    
    Term
    
    Price/McfCow Creek
    
    
    1,460,000
    
    
    
    2,000
    
    
    07/07 - 06/09
    
    $
    5.69
  CRITICAL ACCOUNTING POLICIES AND ESTIMATES
  
 ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
 Interest Rate Risks
   Commodity Price Risks
   14




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##### Table of Contents



ITEM 4. CONTROLS AND PROCEDURES
    
  
 ITEM 1A. RISK FACTORS
  
 ITEM 6. EXHIBITS
  Exhibit Number and Description:
 3.2
    
    Bylaws of the Company, as amended and restated on March 14, 2007 (incorporated by
reference from Exhibit 3.2 of the Companys Current Report on Form 8-K, filed on March 14,
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.
 15




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##### Table of Contents



SIGNATURES
  DOUBLE EAGLE PETROLEUM CO.(Registrant)Date: May 9, 2007
    
    By:
    
    /s/ Lonnie R. BrockLonnie R. BrockChief Financial Officer
 16




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##### Table of Contents



Exhibit Number
    
    DescriptionExhibit 3.2
    
    Bylaws of the Company, as amended and restated on March
14, 2007 (incorporated by reference from Exhibit 3.2 of
the Companys Current Report on Form 8-K, filed on March
14, 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.