Dune Energy Begins Negotiations With Note Holders and Provides Operational Update
02 12월 2009 - 9:00PM
PR Newswire (US)
HOUSTON, Dec. 2 /PRNewswire-FirstCall/ -- Dune Energy, Inc. (NYSE
Amex: DNE) today announced it has begun discussions with the
holders of a majority of the $300 million in outstanding principal
amount of its 10 1/2 % Senior Secured Notes due 2012 (CUSIP:
265338AC7), with a view toward developing a comprehensive
restructuring of the terms of the notes. In light of these
discussions, Dune has notified the trustee under the indenture
governing the notes that Dune does not intend to pay interest on
the notes when due on the applicable December 1, 2009 interest
payment date. The indenture governing the notes contains a 30-day
grace period after which the failure to make such interest payment
would constitute an event of default (which would afford the note
holders certain remedies). Dune intends to work during the 30-day
grace period to advance discussions with note holders regarding a
possible debt restructuring. Given their preliminary nature, it is
uncertain whether these discussions will lead to a definitive
restructuring arrangement that would be acceptable to Dune's board
of directors. James A. Watt, President and Chief Executive Officer
of the Company, stated, "We are pleased to be discussing ways in
which we can proactively restructure our current agreements with
our note holders to free capital to develop the upside potential in
our existing fields and to take advantage of opportunities in the
market place. By taking these actions, we believe we can maximize
value for all stakeholders." Mr. Watt also noted that "At the end
of November, we had ample liquidity to make the December 1 interest
payment, and we expect the company to continue to generate
sufficient liquidity to continue to meet our obligations and fund
operations. Consequently, prior to expiration of the interest
payment grace period on December 31, 2009, Dune may reconsider
making the currently due interest payment on the notes." As of
November 30, 2009, Dune had approximately $29 million in cash.
Under its $40 million revolving credit facility with Wells Fargo
Foothill, Dune has approximately $24 million in outstanding
borrowings and an additional $8.3 million issued in standby letters
of credit. Accordingly, considering its cash position and
approximately $7.7 million in remaining borrowing capacity under
its revolving credit facility, Dune has approximately $37 million
in liquidity. Operational and Production Update As a result of
several wells detailed in prior press releases commencing
production, during the 15-day period ended November 30, 2009,
Dune's production volumes have averaged between 32-35 Mmcfe/day, up
from an average of 23 Mmcfe/day in the third quarter of fiscal
2009. In addition, we anticipate being able to bring the South
Alvin Gas Unit well on production within the next 10 days at rates
between 3 and 4 Mmcfe/day net to the company. This well's
production has been delayed due to repairs on an outside-operated
pipeline through the area. For the remainder of 2009, we plan
several field workovers to offset natural declines in our fields
and anticipate commencing a 2-3 well drilling program in our Garden
Island Bay field late in December 2009 or in January of 2010. 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, Dune
Energy, Inc., +1-713-229-6300 Web Site: http://www.duneenergy.com/
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