Dune Energy, www.duneenergy.com – an independent oil and gas firm with primary operations in the Louisiana/Texas Gulf Coast region, announced today two new drilling joint ventures (JVs) in South Louisiana.
President and CEO of DUNR, James A. Watt, pointed out how the new JVs would help to expose the Company’s shareholders to abundant opportunities within the exploratory framework of DUNR’s prospect base, and projected new reserves/production for 2011 and beyond should the JVs live up to their obvious potential.
The first JV will be executed via DUNR subsidiary, Dune Properties Inc., in conjunction with two additional industry partners:
• Garden Island Bay Field, Plaquemines Parish, LA
• Potential unrisked reserves projected to be over 100 MMBOe
• 19.5k ft exploratory subsalt well targeting Miocene pay sand
• Mapping via high-fidelity depth-migrated 3-D seismic data
• Target evinces strong correlation to the Pompano and Mahogany Fields (50-125 miles away in the gulf)
• Jan. 2011 projected spud date
• Initial working interest in the prospect of 15% for DUNR, 26% after the first 3 MMBOe of gross production
• Cost Recovery-based funding for DUNRs share of drilling expenditures
• All lease acreage and all existing production, except the 9k acres below 12k ft associated with this prospect, is subject to DUNR’s 100% working interest
The second JV will be the result of DUNR signing a letter of intent with a private exploration/production company to sell 60% of the non-productive leasehold interest at its Leeville Field operation for a reported $5M, subsequent to which, said company intends to develop the field via a JV with DUNR retaining 40% working interest.
The agreements represent what is a very shrewd move by DUNR, and one which no doubt will please the Company’s investors, who stand to profit as the market demand for energy continues to experience unabated growth.
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