Dune Energy, Inc. issued an operational update on the company’s oil and gas activities on its properties in the southern United States.
Dune Energy, Inc. has acreage in the Garden Island Bay Field, located in Plaquemines Parish, Louisiana. The company has announced its intention to drill an exploratory well in a joint venture with two other unidentified parties. The well will test a sub salt Miocene sand formation at a depth of approximately 19,500 feet.
Dune Energy, Inc. said that the company has used seismic data to plan out the location of the well and estimates that potential unrisked reserves are in excess of 100 million barrels of oil equivalent (BOE).
Dune Energy, Inc. reported that it would start drilling the exploratory well in the Garden Island Bay Field in January 2011. The company will own a 15% working interest in the well, increasing to 26% after the first 3 million BOE of gross production.
Dune Energy, Inc. has also signed a letter of intent to sell 60% of a lease that the company owns in the Leeville Field, which is located in Lafourche Parish, Louisiana. The company will receive $5 million for the lease interest. Dune Energy, Inc. said that the lease has no current production but that the company intends to participate in any future opportunities through its 40% working interest.
For more information on the company, go to www.duneenergy.com
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