Dune Energy Acquisition of Barnett Shale Properties to Proceed

Dune Energy says that the lawsuit filed by Hughes against certain individuals and entities owning interests in or affiliated with Voyager, has been settled. The Settlement clears the path for Dune to move forward on its proposed acquisition of certain Voyager properties located on the fairway of the Barnett Shale play in the North Texas Fort Worth Basin.

As a result of the Settlement, Dune and Voyager have extended the termination date under their Asset Purchase and Sale Agreement ("PSA") from October 31, 2005 to November 4, 2005. The extension was agreed upon, in order to restructure the transaction due to the delay caused by the Hughes litigation. Dune and Voyager are working together to execute an amended PSA that would provide, among other things, for Dune to acquire properties from Voyager on a "rolling basis." Subject to the signing of such amended PSA, the first of such closings, consisting of approximately $25 million in value, should occur prior to year end.

Separate and apart from entering into an amended PSA, Voyager has assigned to Dune a contract, under which Dune will acquire, on or before November 15, 2005, certain Barnett Shale properties directly from a third party in exchange for approximately $5 million. These properties are located in Denton County and are comprised of four producing wells and locations to support the drilling of four additional locations.