Dune Energy Announces Barnett Shale Discovery

Dune Energy, Inc. said that its McPeek #2 well has reached a total depth of 9,044 feet and encountered a significant Barnett Shale section. The McPeek #2 is presently in the process of completion. Dune anticipates that the well will be placed on production shortly after fracture stimulation, which is scheduled for the second week of August. In addition to the Barnett Shale, the well also encountered a conglomerate sand that will be evaluated.

Dune will move the rig from the McPeek #2 to its Pitts #2 location and will spud that well before the end of this month. After the completion of the Pitts #2, the rig will then move to a location to be determined.

Dune’s aggressive drilling of its Barnett Shale acreage will continue with the accelerated development of its Denton Country Club lease in early September, concurrent with the arrival of the company’s Itera #1 Rig.

“We will continue to accelerate our extensional drilling program in order to fully exploit our acreage on the fairway of the Barnett Shale,” said Amiel David, Dune’s president and chief operating officer. “We expect meaningful increases in production and cash flow in coming quarters.”

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.