
HOUSTON, May 31, 2011 /PRNewswire/ -- Dune Energy, Inc. (OTCBB: DUNR) provides an update on various recent financial transactions.
$300 Million 10 1/2% Senior Secured Notes
Funds escrowed for the June 1, 2011 interest payment on the $300 million of 10 1/2% Senior Secured Notes have been released and the $15.8 million interest payment has been forward to the trustee. These notes mature in June of 2012.
10% Redeemable Convertible Preferred Shares
The preferred stock dividend of 4,567 Preferred Shares has been forwarded to the trustee. Including the dividend payment, there are approximately $155.1 million par amount of Preferred Shares outstanding. The Preferred Stock is redeemable at the option of the holder one year after the maturity of outstanding debt, or upon a change of control. Currently, the earliest redemption date is June of 2013.
Common Stock
Since March 31, 2011, due to the conversion of Preferred Shares, there has been an increase in common shares outstanding to approximately 49 million.
Liquidity
At the end of April 2011 available cash and cash equivalents were $24.9 million not including the $15.8 million of escrowed funds for the June 1, 2011 interest payment or the $8 million cash collateral provided for bonds for future P&A obligations.
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FORWARD-LOOKING STATEMENTS: This document includes forward-looking statements that are intended to be covered by "forward-looking statements" safe harbor provided by the Private Securities Litigation Reform Act of 1995. All statements included in this press release that address activities, events or developments that Dune Energy expects, believes or anticipates will or may occur in the future are 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 that 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.
Investor Contact:
Steven J. Craig
Sr. Vice President Investor Relations and Administration
713-229-6300
SOURCE Dune Energy, Inc.
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