HOUSTON, May 30, 2013 /PRNewswire/ -- Dune Energy (OTCBB:DUNR) announced the completion of a shallow six well drilling program at its Leeville Field, Lafouche Parish, Louisiana. Five of the six wells were successful, and all are currently on production. Two of the five successful wells were dually completed resulting in seven new completions. In addition, two older field wells have been recompleted enhancing, or re-establishing, their production. Gross production from these nine completions was approximately 12 Million cubic feet of gas a day (MCFG/d) and 900 Barrels of Oil per day (BOPD) over the last several days. We anticipate maintaining these production levels going forward until natural declines occur. Dune has approximately a 40% working interest (30% NRI) in the nine completions. Net production to the company is approximately 3.6 MCFG/d and 270 BOPD, or 870 Barrels of Oil equivalent per day (BOe/d). Plan volumes (Unrisked) for these completions were approximately 600 – 700 BOe/d net to the company commencing in the May / June timeframe.
The SL 20783 ST#1 at Leeville field is currently setting a drilling liner at 17,548 feet. The well is intended to drill to approximately 20,625 feet. Objectives for the well are the GG and HH sands at approximately 18,000 feet, and the Cib. Carst sands at approximately 20,000 feet. Both zones have been prolific producers in the immediate area. We anticipate the well will reach total depth by late June or July. Manti Exploration Operating is the operator of this well and the new completions in the field.
April Production Volumes
Net April production volumes were 1,507 BOPD and 6,908 MCFG/d, or 2,658 BOe/day. This includes an approximate 325 BOe/day contribution from the new completions in the Leeville field as only a few of the completions were on line during the month. Approximately 57% of the April production was oil. This compares favorably with first quarter average production of 1,800 BOe/day with 60% being oil.
Near Term Drilling
In addition to the exploratory well at Leeville mentioned above, the company anticipates the spudding of the Wieting #31 well at the Chocolate Bayou field, Brazoria Co., TX. in early June. This 13,000 foot exploratory test will target the '12,000 S' sand, which produced nearly 700 MBO and 7.4 BCFG, or 1.93 MMBOe from an offsetting fault block. Dune will be the operator with a 50% working interest in this test, and results are anticipated in July. There are no reserves currently booked to this well. In addition, the company intends to spud a Proved Undeveloped location within our Live Oak field, Vermillion Parish, Louisiana in late June or early July.
We are currently formulating the plan for drilling in Garden Island Bay prior to the active hurricane season in late summer.
Our web site www.duneenergy.com has been updated for these announcements.
James A. Watt, President and Chief Executive Officer of the Company, stated, "The capital infusion provided by our major shareholders, and the successful drilling at Garden Island Bay and Leeville fields, has allowed us to almost double January production levels. Our next tranche of drilling operations in the Chocolate Bayou and Live Oak fields should add additional near term production and reserves. We will then move to initial drilling in the Garden Island Bay intermediate program."
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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-K filed with the U.S. Securities and Exchange Commission.
Steven J. Craig
Sr. Vice President Investor Relations and Administration
SOURCE Dune Energy