Double Eagle Petroleum reported record financial results for the full-year 2009. Highlights of the year include:

Net production volumes of 9.3 Bcfe, which represents an increase of 39% year over year; Clean Earnings* of $13,440,000 or $1.35 per share; Production costs decreased 20% to $0.83 per Mcfe versus $1.04 per Mcfe for 2008; and Cash flows from operations of $22,062,000.

Total natural gas and crude oil production increased 39% to a record 9.3 Bcfe for the year ended December 31, 2009. The Company-operated Catalina Unit fueled this production growth, accounting for more than 70% of the total production increase. Production-related revenue totaled $52,080,000, which represented a 12% increase over 2008. The production-related revenue included a $3,503,000 gain on the settlement of certain derivative instruments, which are not accounted for as cash flow hedges. The increase in production revenue was driven primarily by the overall growth in production volumes.

The Company's production growth was significantly offset, however, by the decline in natural gas prices from the prior year. The average natural gas price the Company realized in 2009 decreased 20% to $4.85 per Mcf, as compared to $6.08 per Mcf in the prior year. The Company benefited from its hedging program, as the average Colorado Interstate Gas ("CIG") price for 2009 decreased 64% compared to 2008. Total revenue was $44,791,000 for the year ended December 31, 2009.

The Company's gross operating margin, excluding depreciation, depletion and amortization ("DD&A"), was 65.1% for the full-year 2009. The strong gross margin is attributed to cost control and operating efficiency at the Company-operated Catalina Unit. While the Company's total 2009 production costs increased to $7,754,000 as compared to $7,007,000 in 2008, the cost on a per Mcfe basis decreased 20% to $0.83 per Mcfe, as compared to $1.04 a year ago.

The Company reported Clean Earnings, a non-U.S. GAAP metric, for 2009 of $13,440,000 or $1.35 per share, as compared to $13,818,000, or $1.51 per share for 2008. Clean Earnings excludes the effects of non-cash charges, including depreciation, depletion and amortization expense ("DD&A"), unrealized gains/losses related to the Company's economic hedges, which are recorded at fair value at each period end, as well as stock-based compensation expense. The 2009 Clean Earnings includes the impact of income taxes of $12,791,000, although the Company does not expect to pay income taxes due to its unused operating loss carryforwards.

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