Dune Energy Provides 2009 Operational and Production Guidance
14 1월 2009 - 8:30PM
PR Newswire (US)
HOUSTON, Jan. 14 /PRNewswire-FirstCall/ -- Dune Energy, Inc. (NYSE
ALTERNEXT US: DNE) provided an update on fourth quarter operations
and issued 2009 Guidance. Dune ended the fourth quarter of 2008
with approximately $15 million of cash after investing
approximately $18.7 million in capital projects in the quarter and
paying $15.8 million interest on $300 million of 10.5% Senior
Secured Notes. Production in the fourth quarter averaged
approximately 30 Mmcfe/day, slightly below prior guidance due to
the deferral of drilling a fourth well planned for Garden Island
Bay. Drilling operations at Garden Island Bay were suspended in
early December in order to reevaluate the risk/reward of each
project using a dramatically lower pricing scenario. For 2009,
Dune's board approved up to a $50 million capital budget,
conditioned upon capital spending remaining within available cash,
cash flow and the Company's $40 million revolver. For 2009 the
Company is targeting an approximately $38 million budget, resulting
in annual production of 13-14 Bcfe. Production for 2008 was
approximately 11 Bcfe, net of the Barnett Shale which was
considered a discontinued operation for the year. In addition to a
development drilling program and a capital workover program within
several fields designed to maintain current production, the
following exploration/exploitation drilling is anticipated during
the year to reach the increased production levels. Garden Island
Bay, Plaquemines Parish, LA Dune recently signed a marketing and
exploration agreement with a private oil and gas company. This
private company, using its recently completed "Reverse Time
Migrated" 3-D data set will market to industry partners a 75%
working interest in an approximately 20,000-foot exploratory
sub-salt prospect within a 4,900-acre area of mutual interest. Dune
will retain the right to participate for up to a 15% working
interest in the prospect plus interests gained from the marketing
effort. On a gross unrisked basis, the prospect could contain over
300 Bcfe of reserve potential. Dune retains 100% of the rights to
all the shallow potential within the field, currently estimated 130
Bcfe covering 15 prospects. Dune intends to drill three to five of
these prospects during the year. Bayou Couba, St. Charles Parish,
LA Dune is currently seeking an industry partner to participate in
a 13,400-foot prospect located on the south flank of the dome. The
prospect could contain 280 Bcfe on a gross unrisked basis. Dune
anticipates maintaining a 25-40% working interest in the prospect
which is expected to spud in the first half of 2009. Further work
is planned on the depth migration of the 3-D data set to further
define a subsalt exploratory prospect slated for drilling in late
2009. Chocolate Bayou Field, Brazoria County, TX Dune has filed
with the Texas Railroad Commission for drilling a 14,000-foot
development and exploration well for the 12,000 "S" sand and the
deeper untested IP Farms interval. This deeper section could
contain 30 Bcfe of unrisked reserves. Dune would maintain a 50%
working interest in this well which is anticipated to spud in the
second or third quarter of 2009. The well offsets the successful
Wieting 30#1 completed in the first quarter of 2008. Leeville
Field, Lafourche Parish, LA, - Bateman Lake Field, St. Mary Parish,
LA Dune has established exploitation/exploration partnerships on
both of these fields whereby private entities can drill certain
wells, with Dune retaining either a carried working interest or a
participatory interest along with the carried interest. It is
anticipated 5-7 wells will be drilled under these programs in 2009.
Dune owns the deep rights under Leeville Field and is evaluating
the subsalt potential in order to establish an exploratory program
for 2010. Due to several recently structured deals to reduce risk
and preserve capital, the timing of some of Dune's drilling
operations and exploratory projects are now more partner dependent.
Therefore, predicting exact quarterly production will be difficult
in 2009. The Company anticipates approximately 10 to 11 Bcfe of the
2009 production to come from existing operated wells and
completions. Approximately 1-2 Bcfe of production will come from
operated new development drilling within existing fields and 1-2
Bcfe from the operated and non-operated exploratory wells. In
December, Dune was notified by NYSE Alternext that the Company had
fallen below current listing requirements. The Company has
submitted a plan for NYSE Alternext's review indicating the
assumptions necessary to again meet the listing standards. There
can be no assurances that such plan will be accepted. James A.
Watt, Dune's President and Chief Executive Officer stated, "2008
was a challenging year for Dune, the industry and investors
throughout capital markets. We have positioned ourselves to
evaluate much of the upside potential in our Gulf Coast property
base in 2009 and 2010. Dune plans to balance the risk of this
extensive upside potential with capital availability and the
overall commodity price environment in order to add value for our
shareholders." Click here for more information:
http://www.duneenergy.com/news.html?b=1683&1=1 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.
DATASOURCE: Dune Energy, Inc. CONTACT: Steven J. Craig, Sr. Vice
President Investor Relations and Administration of Dune Energy,
Inc., +1-713-229-6300 Web Site: http://www.duneenergy.com/
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