Dune Energy reported that revenue for the fourth quarter totaled $39.8 million and $84.3 million for calendar year 2007. This compares with $3.4 million and $7.6 million for the fourth quarter and full year 2006, respectively. Production volumes in the fourth quarter were 281 Mbbls of oil and 2.15 Bcf of natural gas, or 3.8 Bcfe for the fourth quarter and 9.0 Bcfe for the full year 2007.
This compares with 17 Mbbls of oil and 0.43 Bcf of natural gas, or 0.53 Bcfe for the fourth quarter of 2006, and 1.1 Bcfe for the full year 2006. In 2007, the average sales price per barrel of oil was $76.14, and $7.25 per Mcf for natural gas, as compared with $59.77 per barrel and $5.99 per Mcf, respectively, in 2006. The primary reasons behind the increase in revenue were higher production and higher average sales prices in 2007 versus 2006.
James A. Watt, President and Chief Executive Officer stated, "We are very pleased with the success of the program in 2007. We put a comprehensive organization together and implemented an aggressive and successful drilling program in the second half of last year. For 2008, we have approved a $121 million capital budget, primarily targeting development opportunities within our existing fields.
"During the first half of the year, we expect to complete facilities improvements in existing fields, and commence production of the wells initially drilled in late 2007. Our drilling program will be much more active in the latter part of the year, as we anticipate having facilities enhanced and capable of handling increased production volumes. Looking forward into 2009 and beyond, Dune expects to exploit the very significant potential upside of some of our deeper pools, such as Bayou Couba, Garden Island Bay, and Leeville."
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