Management Turnover as Change Agent

Tuesday, December 11, 2007

Double Eagle Petroleum Doubles Management Changes

Double Eagle Petroleum DBLE (NASDAQ), an oil and gas exploration company in the Rocky Mountains of Utah and Wyoming, is about to lose both its CEO and CFO.

Today the company announced its Board of Directors appointed Kurtis Hooley, the current director of business development and financial planning, to be its Chief Financial Officer. Prior to joining the company, Hooley served as the President of MKH Enterprises from 2003 to 2006. Hooley replaces Lonnie Brock, who on December 5, 2007 notified the company of his resignation in order to take a position with another company. Brock will remain at Double Eagle through December 31, 2007 and will assist in the transition to the new CFO. Five days after the Brock announcement, Stephen Hollis, the company's CEO since 1994 and a long-time employee of the firm, notified the company's Board of Directors that he desired to resign from his position as CEO and Chairman as of December 31, 2007. Hollis indicated he was willing to continue as an employee to provide advice and expertise concerning the Company's operations for at least an additional year through December 31, 2008. He will continue as a member of the Company's Board of Directors.

The company's press release stated,
Neither Mr. Brock nor Mr. Hollis resigned from their respective positions due to any disagreement with the Company, or because of any improprieties or any other matter relating to the Company's operations, policies or practices.
The Board appointed Richard Dole, who has been a director of Double Eagle since March 2005, as Chairman. As part of his responsibilities, Dole, on behalf of the Board, will coordinate company activities and management until a new CEO is selected.

The double loss in top management does not bode well for a company that has not displayed many positive financial aspects over the last few years. While the company recently had a favorable legal finding with regard to a lawsuit initiated by environmental organizations, the loss of its long time CEO and its CFO indicates there may not be great financial opportunities awaiting the company over the next few years.

Keep an eye on the interim management of the firm and the individual the company finds to replace Hollis as CEO.

For more:

CNN Money (more)
CNN Money
Trading Markets
Small Cap Investor

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