Dune Acquires Louisiana Acreage Contiguous to Bayou Couba Property
Dune Energy, Inc. on Tuesday reported its acquisition of Louisiana State Lease 19246, which totals 2,498 acres and is located on the north shore of Lake Salvador. The property is contiguous to Dune's highly prospective Bayou Couba salt dome acreage in St. Charles Parish. The lease has an initial term of one year, with two annual extensions possible, unless drilled and subsequently converted to a production lease. The royalty payable to the State of Louisiana is 22.5%.
The acquisition of this acreage reflects management's strong conviction regarding the likelihood of the existence of substantial oil and natural gas reserve potential, which could materially increase future production, cash flow and proved reserves.
Houston-based Dune Energy is a rapidly growing E&P company with oil and gas exploration and development concentrated along the Louisiana/Texas Gulf Coast as well as the Fort Worth Basin Barnett Shale.
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