FAQ’s

Q. Can I be notified by email of news releases issued by Double Eagle Petroleum?

A. Yes. This can be accomplished by filling out the brief form on the Investor Relations section of our web site and sending it to us or by emailing directly to Jcampbell@eagle-eagle.net

Q. How can I change my address? How can I change the registration or transfer my shares?

A. You should contact our stock transfer agent, Computershare Trust Company by mail or telephone:

Computershare
250 Royall Street
Canton, MA 02021
or by Telephone, 1-800-962-4284

Q. What determines natural gas prices?

A. Like any commodity, natural gas prices are determined by supply and demand. Domestic production and consumption are important factors, and there are a number of variables that can affect each of these. Some of these other factors, such as the weather and our level of natural gas imports, are difficult to predict, contributing to the volatility in prices. In addition, natural gas competes with other energy sources in the production of electricity, so price levels of other fuels relative to gas can have an impact on gas consumption.

Q. How can I learn more about natural gas?

A. The U.S. Energy Information Administration provides comprehensive data on the natural gas industry, including monthly updates on production and consumption and weekly reports on changes in natural gas supplies held in storage. www.eia.doe.gov

Other good sources include Natural Gas Facts, the American Gas Association, and the Natural Gas Supply Association. Their web sites are as follows.

www.naturalgasfacts.org
www.aga.org
www.ngsa.org

Q. Why does it seem like natural gas prices in the Rockies are usually the lowest in country?

A. The low gas prices in the Rockies versus those realized at Henry Hub are primarily due to the region’s rapid growth in production and limited pipeline take away capacity. Gas production in the Rockies greatly exceeds its gas consumption, so most of its production must be shipped by pipeline to higher consuming regions. This is especially true in the non-winter months, when Rockies’ gas consumption is seasonally low.

At times, this growth in production has overwhelmed the pipeline capacity that takes Rockies gas to larger markets to the east and west. It requires several years to obtain regulatory approvals and put into operations additional pipeline capacity. Until additional capacity is created, a regional gas surplus is created and prices remain low relative to other areas. With the completion of the highly efficient Rockies Express Pipeline (“REX”) and the addition of other new pipelines over the next two years, Rockies gas prices may soon be in closer alignment with those in other parts of the country.

Q. Given the volatility in gas prices, does Double Eagle have a hedging philosophy or hedging policy in place? Please explain.

A. The Company believes in a balanced approach to its hedging policy. The Board of Directors has approved limits and the types of instruments the Company may enter into. Management seeks to protect the Company’s cash flow and revenues from significant declines in the market price of gas, while preserving the opportunity to participate in upward price movement. The Company employs multiple instruments including costless collars, fixed price physical contracts and floors. Management continually monitors the market price of natural gas, as well as the basis differential, in an effort to achieve a balance between the cost, risk and opportunity.