Dune Energy Announces Record Production Levels
Dune Energy has placed nine wells on production since August 30, 2006. Stabilized rates from these new wells has added gross production of 10.0 million cubic feet per day (MMcfe/d), bringing the Company's total daily gross production to 12.3 MMcfe/d. This represents better than a four-fold increase over previous levels.
Four wells were drilled and placed on production by Dune on its existing core Barnett Shale acreage, while two were purchased as part of its recent acquisition of properties from Voyager Partners, Ltd.
Dune has also participated in the successful recompletion of three wells on its Bayou Couba property in South Louisiana. Dune owns a 91.4% WI in two of these wells and a 20.7% WI in the third.
In addition, Dune has participated in the completion of two wells on its Welder Ranch property in Victoria County, Texas. Both wells are waiting on pipeline connection. Dune was carried to casing point in the two wells as part of a previously announced farm-in agreement with Chesapeake Energy.
Amiel David, President and Chief Operating Officer said, "Dedicating the Itera #1 Rig to our Barnett Shale properties allows us to drill up to 10 wells per year. We have 24 horizontal and vertical locations in our current Barnett Shale drilling inventory. Upon successful closing of the remaining Voyager assets, our total number of drilling locations will increase to 51, excluding any additional acquisition of acreage in the Basin."
Alan Gaines, Dune's Chairman and Chief Executive Officer said, "This is an exciting time for Dune. Our management team has worked diligently to acquire premium acreage and secure the required financial resources in order to execute our development plan. We continue to actively create incremental value for our shareholders. We expect rapid growth in production, cash flow, and proved reserves."
Dune is a rapidly growing and focused oil and gas exploration and development company with operations presently concentrated along the Louisiana/Texas Gulf Coast as well as the Fort Worth Basin Barnett Shale.
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