HOUSTON, Aug. 9 /PRNewswire-FirstCall/ -- (AMEX:DNE) Dune Energy announced today that it is forecasting 2007 year-end exit rate production volumes to meet or exceed 55 Mmcfe/d, approximately double proforma volumes at the beginning of the year. The exit rate for the second quarter of 2007 was 31.6 Mmcfe/d. The sharp increase in such volumes will stem from greatly increased activity in the Barnett Shale (as detailed in Dune's prior press release dated August 7, 2007), coupled with a very active Gulf Coast drilling program covering the former Goldking Energy properties acquired by Dune on May 15, 2007.
Listed below are the major projects ongoing or to be initiated prior to year end along with the forecast year-end production increases.
Production
Increases
Project # of wells Operator W.I.(%) Spud MMcfe/d Barnett Shale 10 Dune 100 Continuous 6-7
Garden Island Bay 6 Dune 100 Continuous 6-8
Bateman Lake* 8 Dune 100 Sept-Nov 5-7
Other 5 Dune 100 Sept-Nov 6-8 Total 23-30
* Workovers or Recompletions
The majority of Dune's Barnett Shale drilling will focus on properties where Dune has no proved reserves currently booked. Garden Island Bay activity will primarily consist of low risk step-outs and/or new fault blocks within the historically productive zones of the field at depths between 5,000 and 10,000 feet. Recompletions at Bateman Lake will largely target proved behind pipe reserves (PDNP), while other projects include proved undeveloped (PUD) locations at Chocolate Bayou, Toro Grande, South Florence, Malo Domingo, and Bayou Couba.
James A. Watt, President and Chief Executive Officer, stated, "We have a solid organization in place, and we have commenced implementation of our plan to aggressively exploit our considerable asset base, at the same time developing new prospects for mid-late 2008 and beyond. By comparison, our near term 2007/2008 program is expressly designed to add low risk production volumes and to provide requisite cash flow in order to develop the deeper potential of our Gulf Coast properties, and to continue our highly successful Barnett Shale project." FORWARD-LOOKING STATEMENTS: This document includes forward-looking statements. Forward-looking statements include, but are not limited to, statements concerning estimates of expected drilling and development wells and associated costs, statements relating to estimates of, and increases in, production, cash flows and values, statements relating to the continued advancement of Dune Energy, Inc.'s projects and other statements which are not historical facts. When used in this document, the words such as "could," "plan," "estimate," "expect," "intend," "may," "potential," "should," and similar expressions are forward-looking statements. Although Dune Energy, Inc. believes that its expectations reflected in these forward-looking statements are reasonable, such statements involve risks and uncertainties and no assurance can be given that actual results will be consistent with these forward-looking statements. Important factors that could cause actual results to differ from these forward-looking statements include the potential that the Company's projects will experience technological and mechanical problems, geological conditions in the reservoir may not result in commercial levels of oil and gas production, changes in product prices and other risks disclosed in Dune's Annual report on Form 10-KSB/A filed with the U.S. Securities and Exchange Commission. DATASOURCE: Dune Energy, Inc.
CONTACT: Investors, Steven J. Craig, Sr. Vice President Investor Relations and Administration, Dune Energy, Inc., +1-713-229-6300 Web site: http://www.enercominc.com/
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