Dune Energy Encounters Gas at Welder Ranch Well

Dune Energy has completed the Welder Heirs #2 as a natural gas producer.

The well was drilled into the Frio formation to a total depth of 3,532 feet and encountered 18 feet of net pay in four potential pay zones. Dune owns a 100-percent working interest in the well, which was put on production from the lowest horizon at a current rate of 300 mcf/d with a flowing tubing pressure of 1,200 psi.

Dune plans to observe the production trend of this zone, and recomplete the other three zones in the future.

Dune also drilled the Rob Welder #2 to a total depth of 5,800 feet. Although log analysis indicated potential gas pay, the well was dry and has been plugged and abandoned.

"We are encouraged by our drilling results at the Welder Heirs #2 where we encountered unexpected pay zones in the Frio formation," said Amiel David, Dune's president and CEO. "This supports continued exploitation of the shallow Frio formation throughout our property."

Dune owns approximately 8,000 acres in two contiguous leases in the Welder Ranch located in Victoria County, Texas.

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