HOUSTON, Aug. 4, 2005 (PRIMEZONE) -- Dune Energy, Inc. ("Dune" or the "Company") (AMEX:DNE) reported today that the Vaquero No. 2 well, drilled on Dune's Welder Ranch property in Victoria County, Texas, was put on production on August 1, 2005, and is presently flowing at a rate of 2.0 MMcfe/d. Dune intends to frac the Vaquero No. 2 in approximately one month, at which time management believes that there will be a very significant increase in production. Dune holds a 51.9 percent net working interest in the Vaquero No. 2.
Dune also reported that its two dual horizontal lateral wells drilled into the Lower Austin Chalk trend in the Pearsall Field in Frio County, Texas, are currently producing oil at a combined rate of 180 B/d, an increase of 20 percent since July 12, 2005. Management expects continued production increases as water used during drilling operations is recovered. Pending continued testing and rig availability, the Company anticipates drilling up to an additional 22 locations on its leased and optioned acreage. Dune owns a 27 percent working interest in the first Pearsall well, and a 40 percent working interest in the second.
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.