Oil and Gas Main (fka OGM)

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Dune Energy Acquires Additional Leasehold Interests on Fairway of Barnett Shale
Friday June 2, 8:18 am ET


HOUSTON, June 2 /PRNewswire-FirstCall/ -- Dune Energy, Inc. (Amex: DNE - News; "Dune") announced today that it has, in accordance with its existing asset Purchase and Sale Agreement with Voyager Partners, Ltd., acquired additional leaseholds located in Denton County, Texas, on the fairway of the Fort Worth Basin Barnett Shale. The purchase price for this transaction, net of adjustments, was $5.5 million, or $1.19 per Mcfe of net proved reserves ($1.90 per Mcfe for fully developed leases). This acquisition provides Dune with three shut-in wells, of which two are awaiting fracture stimulation ("frac"), as well as three additional proved undeveloped (PUD) locations. The shut-in wells are awaiting pipeline connection, and are expected to be in production by September 1, 2006.
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Dr. Amiel David, President and COO, stated, "We have just completed another extremely cost effective purchase on the sweet spot of the Barnett Shale play. We expect to commence our aggressive drilling program shortly, as we anticipate a rig to be on our property within 20 days, which Dune will use to drill four locations. In addition, we also expect to accept delivery of another rig under a two-year dedicated contract on or about August 1, 2006, as previously stated on April 11, 2006."

Dune is an aggressive and rapidly growing oil and gas exploration and production company with operations presently concentrated along the Louisiana/Texas Gulf Coast as well as the Fort Worth Basin Barnett Shale. Additional information is available at http://www.duneenergy.com.

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.


Contacts: Alan Gaines, Chairman & CEO
Dune Energy, Inc.
713-888-0895

Jack Lascar, Partner
DRG&E
713-529-6600