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Is Double Eagle Pete undervalued? According to recent transaction between CEO & CHK

|Includes:ARD, CEO, CHK, CPE, CWEI, Double Eagle Petroleum Company (DBLE), FOR, GEOI, GMXRQ, MCF, STO

it would seem so, partial from a seeking alpha article

  • CNOOC (NYSE:CEO) is paying $1.267 billion for a one-third interest in CHK's 800,000 net acre DJ Basin position (both Niobrara and PRB).
  •  The Deal Terms:

  • This comes to about $4,750 per acre, which is leaps and bounds ahead of all the deals we've seen announced in the Niobrara over the last year, including the CHK acquisition of SSN's Goshen Wyoming acreage for $3,275 / acre last Fall.




$4,750 per acre for just a 1/3 interest makes DBLE look cheap at current market cap.

Double Eagle owns 70,000 net acres in the Niobrara play.  I am not sure of the distribution of these acres so do your own DD.



Stocks: DBLE, CHK, CEO, STO, FOR, GEOI, CWEI, CPE, GMXRQ, ARD, MCF