Dune Energy Updates Third Quarter Operating Results
23 10월 2009 - 1:07AM
PR Newswire (US)
HOUSTON, Oct. 22 /PRNewswire-FirstCall/ -- Dune Energy, Inc. (NYSE
AMEX: DNE). Drilling and Completion Operations The Wieting #32 well
at the Chocolate Bayou Field, Brazoria County, Texas, was drilled
and logged to a total measured depth of 12,750 feet. A private
party operated the drilling, and Dune will operate the completion
procedure and production. Electric logs indicate approximately 50'
of high quality gas pay in the primary objective of the 12,000 S
Sand. Completion and flowline installations are expected to be in
place by early November 2009. The Wieting #30 well was recently
recompleted and is currently flowing at approximately 5 MMcfe/day.
Dune has a 50% working interest in the completion of the Wieting
#32 and a 100% working interest in the Wieting #30. At South Alvin
Field in Brazoria County, Texas, Dune has completed drilling
operations and flow testing and is preparing to lay a pipeline for
production. The well has tested over 3 MMcfe/day, and first
production is anticipated in early December 2009. Dune operates the
Alvin Townsite GU #1 ST2 well with a 76.6% working interest.
Several workovers of existing wells within the Garden Island Bay
Field, Plaquemines Parish, Louisiana are currently ongoing. At
Leeville Field, Lafouche Parish, Louisiana, Dune has a 5% ORRI in a
12,500' exploratory test well currently drilling below 8,967'
measured depth. The well is operated by a private entity. At
Bateman Lake Field, St. Mary Parish, Louisiana the company
anticipates one exploratory well to be drilled in the fourth
quarter of 2009 or first quarter of 2010 based on an exploration
agreement with a private entity. Dune can choose to be carried for
a 20% working interest or to participate for an approximate 35%
working interest including a carried percentage. Additional
workovers of existing wells in several fields are planned during
the fourth quarter. We anticipate commencing drilling operations in
Garden Island Bay in late 2009 or early in 2010 on a 2 to 5 well
program primarily focused on oil reservoirs. Production Volumes
Third quarter production volumes averaged between 22 and 24
MMcfe/day as compared to approximately 26 MMcfe/day for the first
half of 2009. The recent activity is anticipated to result in
fourth quarter volumes averaging between 29 and 33 MMcfe/day
depending on sustained rates and timing on new well production.
Liquidity At the end of the third quarter we had $19.9 million in
cash. Additionally, availability under the Wells Fargo Foothill
revolver was increased to $40 million of which $17 million is
currently drawn and $8.3 million is issued in standby letters of
credit, resulting in almost $35 million of liquidity at the end of
the quarter. Hedging In addition to our hedges for the remainder of
2009, we have put costless collars in place for 2010 for both gas
and oil production. Over the year approximately 6.5 MMcf/day of gas
is hedged with a floor of $4.50 per MMcf and a ceiling of $7.68 per
MMcf, and for the same time frame approximately 900 BO is hedged
with a floor of $60.00 per BO and a ceiling of $88.10 per BO. This
is slightly above the 50% of proved developed producing volumes
currently forecast for 2010 as required under our Wells Fargo
Foothill credit agreement. James A. Watt, President and Chief
Executive Officer stated, "We are pleased with the results of the
third quarter activity and plan to continue well workovers in
various fields along with initiating a new well drilling program at
Garden Island Bay late in 2009 or early 2010. We severely limited
our capital programs during the low commodity price environment but
now feel with improved prices we can more aggressively pursue
drilling operations within our fields. This increased activity will
be scheduled to remain within the liquidity constraints of our cash
on hand and availability under the revolver." 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: Investors, Steven J. Craig,
Sr. Vice President Investor Relations and Administration of Dune
Energy, +1-713-229-6300 Web Site: http://www.duneenergy.com/
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