Dune Spuds New Barnett Shale Well

Dune Energy, Inc. said Monday that it had spudded a new well targeting the Barnett Shale formation. Foster-McPeek #1, located in Denton County, Texas, will be drilled to a total depth of approximately 9,000 feet.

The new well is an offset to Dune's McPeek #2, which encountered a significant Barnett Shale section and is scheduled for fracture stimulation in mid-August, pending equipment availability. Dune’s management expects the Foster-McPeek to reach total depth in about 30 days, which will then allow the rig to be moved to Dune's Pitts #2 location. Dune owns a 95% WI interest and a 73.15% NRI in the well.

The Foster-McPeek #1 is the second of four wells Dune has committed to drill with the same rig (the McPeek #2 being the first). In addition, as previously announced, Dune expects delivery of the Itera #1 Rig in mid to late August 2006, for an initial term of two years. The Itera #1, which will be dedicated solely to Dune, will be capable of drilling both horizontal and vertical wells.

Dune is a growing oil and gas exploration and production company with operations presently concentrated along the Louisiana/Texas Gulf Coast and the Fort Worth Basin Barnett Shale.