SOURCE: Dune Energy, Inc.

April 12, 2005 13:18 ET

Dune Energy, Inc. Announces Spud of Vaquero #2, Gives Progress Report on Vaquero #1 on Welder Ranch

HOUSTON, TX -- (MARKET WIRE) -- April 12, 2005 -- Dune Energy, Inc. (OTC BB: DENG) ("Dune" or the "Company") today announced the spudding of the Vaquero #2 well, located on its Welder Ranch property in Victoria County, Texas. This Middle Wilcox test was permitted to 17,000 feet. The Vaquero #2 will offset the Bell #4 well, drilled by a competitive operator approximately 1,200 feet to the north. Dune also stated that the Vaquero #1, in the process of completion, will be perforated and flow tested, and put on production shortly. Completion is being undertaken in certain of the deeper geopressured horizons evident on initial logs.

As previously announced on March 14, 2005, the Vaquero #1 encountered significant stacked zones totaling more than 100 feet of gross pay at various depth intervals between 9,000 and 14,000 feet in the Middle Wilcox formation. Dune Energy, through its 85% owned subsidiary, holds a 64% working interest in both the Vaquero #1 and #2.

To find out more about Dune Energy (OTC BB: DENG), please visit the Company's website at www.duneenergy.com.

SAFE HARBOR PROVISION

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-KSB filed with the U.S. Securities and Exchange Commission.

Contact Information

  • Company Contact:
    Alan Gaines
    Chairman & CEO
    (713) 888-0895

    Ron Stabiner
    The Wall Street Group, Inc.
    (212) 888-4848