HOUSTON, March 16, 2011 /PRNewswire/ -- Dune Energy, Inc. (OTC Bulletin Board: DUNR) today announced it has set casing at 13,062 feet on its 100% working interest SL 214 #916 well (S Prospect) at Garden Island Bay Field, Plaquemines Parish, Louisiana. The well was drilled to a total depth of 13,078 feet and 5-inch casing has been run to 13,062 feet. The well encountered a 6-foot pay zone (by log analysis) at 12,504 feet on water and an approximately 24-foot zone at 12,708 feet. Mechanical conditions in the wellbore prevented this zone from being fully evaluated by electric wireline logs, but it did exhibit mud log shows while drilling. The new well data, when incorporated into the seismic data, will determine if the best use of the wellbore is to attempt a completion in the zone at 12,708 feet, or to sidetrack the well updip for a structurally advantaged position. Deepening the well at its current location to the original 14,000-foot total depth is another option. The initial objective of the well was the 170 series sands anticipated between 13,000 and 14,000 feet, which has not yet been reached. It is anticipated that the reentry to attempt a completion, sidetrack or deepening will occur in May.
The SL 214 #1, a 19,500-foot subsalt well in which Dune has a 15% working interest prior to payout, is currently setting 20-inch casing at 2,512 feet. Once this casing is set, plans are to drill approximately 11,000 feet of salt, set 14-inch casing near the base of salt and then drill out into the potentially prospective Miocene interval between 13,400 and 19,500 feet. Results of this test should be known in May or June.
James A. Watt, President and Chief Executive Officer of the Company, stated, "We are very excited that we found apparent hydrocarbon-bearing sands in the #916 well which provides a confirmation of our seismic interpretation in this relatively unexplored segment of the field. This test is one of seventeen different prospects developed around the field utilizing depth-migrated 3-d seismic data. We now must determine the best economic use of this wellbore as either a completion, sidetrack or deepening in order to most efficiently develop the upside potential of this major oil field."
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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, Inc.