Dune Energy Increases Barnett Shale Position

Barnett Shale - Fort Worth Basin, Texas
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Dune Energy, Inc. has, in accordance with its existing asset Purchase and Sale Agreement with Voyager Partners, Ltd., acquired additional leaseholds located in Denton County, Texas, on the fairway of the Fort Worth Basin Barnett Shale. The purchase price for this transaction, net of adjustments, was $5.5 million, or $1.19 per Mcfe of net proved reserves ($1.90 per Mcfe for fully developed leases). This acquisition provides Dune with three shut-in wells, of which two are awaiting fracture stimulation ("frac"), as well as three additional proved undeveloped (PUD) locations. The shut-in wells are awaiting pipeline connection, and are expected to be in production by September 1, 2006.

Dr. Amiel David, President and COO, stated, "We have just completed another extremely cost effective purchase on the sweet spot of the Barnett Shale play. We expect to commence our aggressive drilling program shortly, as we anticipate a rig to be on our property within 20 days, which Dune will use to drill four locations. In addition, we also expect to accept delivery of another rig under a two-year dedicated contract on or about August 1, 2006, as previously stated on April 11, 2006."

Dune is an aggressive and rapidly growing oil and gas exploration and production company with operations presently concentrated along the Louisiana/Texas Gulf Coast as well as the Fort Worth Basin Barnett Shale.

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