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Dune Energy Inc. (DNE) Deals In Texas and Louisiana

Dune Energy, Inc., with headquarters in Houston, Texas, is an independent oil and gas exploration and development company. Listed on the American Stock Exchange (AMEX), the company’s operations are along the Louisiana/Texas Gulf Coast and the Barnett Shale in the North Texas Fort Worth Basin. Their properties cover approximately 100,000 gross acres across 23 producing oil and natural gas fields

Dune’s proved reserves as of January 1, 2008 totaled 175 billion cubic feet equivalent (Bcfe). The company operates more than 90 percent of their production and normally maintains a 100-percent working interest. Dune’s goal is to work on their underdeveloped properties via extensional drilling and low-risk step-outs. The company’s projects include Chocolate Bayou, and Barnett Shale in Texas, as well as Garden Island Bay, Bayou Couba, and Leeville, in Louisiana.

They have a two-plus-year current drilling inventory on Gulf Coast properties and a multi-year Barnett Shale inventory. For the rest of this year, and beyond, Dune will continue to exploit low-risk opportunities on their existing acreage positions. They will also gradually increase their focus on exploration opportunities. They will do this by applying technology and capital to untested zones with significant upside in deeper pool and subsalt potential.

With a focus on exploration, Dune also plans to pursue more acquisitions. In 2007, Dune acquired Goldking Energy Corporation. This acquisition included legacy assets of major oil companies that have not had recent technology and capital applied for many years. Dune also plans, as is feasible, to maintain operator positions to control the timing of operations and their costs. Dune Energy sells their oil and gas mainly to pipelines and refineries. The company began in 1998 as IP Factory, Inc. and changed their name to Dune Energy, Inc. in 2003.

On Wednesday, July 23, they announced that they have commenced drilling a State Lease 214 #912 well at their Garden Island Bay Field, located in Plaquemines Parish, Louisiana. They are scheduling the well to reach total depth of 9,300 feet by mid-August. Dune anticipates production here in September. Dune Energy Inc. continues to explore oil and gas opportunities deep in the heart of Texas and Louisiana to drive company and shareholders’ profits.

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