Oct. 22, 2009 (PR Newswire) --
HOUSTON, Oct. 22 /PRNewswire-FirstCall/ -- Dune Energy, Inc. (NYSE AMEX: DNE).
Drilling and Completion Operations
The Wieting #32 well at the Chocolate Bayou Field, Brazoria County, Texas, was drilled and logged to a total measured depth of 12,750 feet. A private party operated the drilling, and Dune will operate the completion procedure and production. Electric logs indicate approximately 50' of high quality gas pay in the primary objective of the 12,000 S Sand. Completion and flowline installations are expected to be in place by early November 2009. The Wieting #30 well was recently recompleted and is currently flowing at approximately 5 MMcfe/day. Dune has a 50% working interest in the completion of the Wieting #32 and a 100% working interest in the Wieting #30. At South Alvin Field in Brazoria County, Texas, Dune has completed drilling operations and flow testing and is preparing to lay a pipeline for production. The well has tested over 3 MMcfe/day, and first production is anticipated in early December 2009. Dune operates the Alvin Townsite GU #1 ST2 well with a 76.6% working interest. Several workovers of existing wells within the Garden Island Bay Field, Plaquemines Parish, Louisiana are currently ongoing.
At Leeville Field, Lafouche Parish, Louisiana, Dune has a 5% ORRI in a 12,500' exploratory test well currently drilling below 8,967' measured depth. The well is operated by a private entity. At Bateman Lake Field, St. Mary Parish, Louisiana the company anticipates one exploratory well to be drilled in the fourth quarter of 2009 or first quarter of 2010 based on an exploration agreement with a private entity. Dune can choose to be carried for a 20% working interest or to participate for an approximate 35% working interest including a carried percentage. Additional workovers of existing wells in several fields are planned during the fourth quarter. We anticipate commencing drilling operations in Garden Island Bay in late 2009 or early in 2010 on a 2 to 5 well program primarily focused on oil reservoirs.
Production Volumes
Third quarter production volumes averaged between 22 and 24 MMcfe/day as compared to approximately 26 MMcfe/day for the first half of 2009. The recent activity is anticipated to result in fourth quarter volumes averaging between 29 and 33 MMcfe/day depending on sustained rates and timing on new well production.
Liquidity
At the end of the third quarter we had $19.9 million in cash.
