Dune Energy Successfully Completes Initial Barnett Shale Well

Dune Energy has successfully completed, and subsequently placed on production, its initial well drilled in the Barnett Shale, located in Denton County, Texas. The Denton Country Club #8 was perforated and fractured in three different horizons. During the first twenty four hours, the DCC#8 produced 1.1 mmcf of natural gas, with a flowing tubing pressure of 800 psi on an 18/64 choke. The well is presently cleaning up water associated with the frac. Therefore, as a result, the daily production rate could increase.

Dr. Amiel David, President and COO stated, "We are extremely pleased with the results of this well, which is our second producer on the DCC lease. With the completion of the construction of the first rig, which will be dedicated to Dune for use on our Barnett Shale properties on or before August 1, 2006, we will accelerate our extensional drilling program on our Fort Worth Basin Barnett Shale leases."

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.