Dune Energy Inc.(fka DUNRQ)

[Didymus]

The following is a great post from the Yahoo message board:

I'm not sure if everybody understands the engineering feat accomplished by ORX/REP this week. They have successfully set casing near the bottom of a major salt feature after drilling through the entire core of this salt body. This has to be one of the thickest salt sections ever drilled, and it was done without serious mechanical incident. Congrats!

This creates an amazing amount of value in my mind for a couple of reasons.

First, having casing set to the bottom of this salt body eliminates one of the main risks that we all worried about before the well was drilled. At this point, we no longer have to be concerned with the chances of losing the well due to complications in the salt.

Second, by taking this incredible risk and drilling the entire salt body rather than attempting to kick the well under the salt overhang, the well is currently positioned to enter the Miocene at the absolute best structural position possible (see slide 15 of the latest Dune presentation). The well will now exit the salt from the "armpit" of the overhang and encounter the entire 7000 feet of Miocene section at the most advantageous structural positions possible. This is huge, and we are currently sitting at a fantastic vantage point.

I don't mean to sound like all mechanical risks are behind us because that is far from the truth. In fact, many lie immediately in front of us including the delicate exit from the salt into the Miocene. However, it cannot be denied that the major mechanical risk of drilling the salt body itself is behind us, and we will now be allowed to move forward and attempt to test the interval that we have been anticipating for so many months.

Based upon Tuesday's report, the drill bit could be in the prospective section very soon. I'm estimating that we are literally a day or two, if not a few hours, away from entering the Miocene. If this well begins to encounter mud log shows, gas kicks, and/or pays logged while drilling, the current stock price will be long forgotten and many will look back and wonder why in the hell they weren't willing to pay $1 per share.

One thing's for sure. It's gonna be a fun ride!

All aboard that' comin' aboard! The train is leaving the station.