Dune Increases Year-Over-Year Reserves 490%
Dune Energy Inc. reported year-end 2007 reserves totaled 175 Bcfe, consisting of 117 Bcf of natural gas and 9.6 MMbbls of oil. Approximately 67% of the reserves are natural gas. Proforma for the acquisition of Goldking Energy Corporation in May 2007, year end 2006 reserves totaled 142 Bcfe. Prior to the Goldking transaction, Dune reported proved reserves of 29.7 Bcfe at year end 2006. The reserve report was prepared by DeGolyer and McNaughton, an independent reservoir engineering firm.
Proved developed producing reserves (PDP) totaled 58.1 Bcfe, Proved Developed Non-Producing (PDNP) was 60.4 Bcfe, and Proved Undeveloped (PUD) was 56.2 Bcfe. A significant portion of the PDNP (behind pipe) reserves are associated with wells in our Chocolate Bayou, Comite, and Garden Island Bay fields, which were drilled prior to year end but have not yet commenced production. The SEC Present Value (PV@10%), based on year end pricing of $7.33/Mcfe and $92.66/bbl, totaled $733.1MM. On a proforma basis, we replaced approximately 354% of 2007 production of 12.9 Bcfe.
James A Watt, President and Chief Executive Officer stated, "We are extremely pleased with our reserve additions and attendant F&D costs in 2007, since our primary focus was the conversion of PDNP and PUD reserves to proved producing reserves. This program will continue in 2008. Later in the year, we anticipate more focus on deeper exploratory tests on several of our high impact Gulf Coast fields, which could significantly impact proved reserves, production, and cash flow moving into 2009 and beyond."
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