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Dune Energy, Inc. Reports Mid-Year 2013 Proved Reserves Of 16.5 MMboe, Up 10% From Year-End 2012



Dune Energy, Inc. Reports Mid-Year 2013 Proved Reserves Of 16.5 MMboe, Up 10%
                              From Year-End 2012

PR Newswire

HOUSTON, Aug. 28, 2013

HOUSTON, Aug. 28, 2013 /PRNewswire/ -- Dune Energy, Inc. (OTCBB: DUNR) today
reported mid-year 2013 proved oil and gas reserves of 7,570 MMbo and 53.8 Bcf
of gas or 16,545 Mboe.  Oil volumes increased 985 Mbo or 15% and gas volumes
increased 3.2 Bcf or 6% over year-end 2012 reported reserves.  The majority of
these increases were associated with the recently completed drilling program
in our Leeville field in Lafourche Parish, Louisiana.  PV@10% value of these
reserves, as calculated in accordance with applicable financial and reporting
standards of the SEC, totaled $339 million or 30% above the year-end 2012
PV@10% value of $260.6 million.   DeGolyer and MacNaughton, the Company's
independent reservoir engineering consultant provided the mid-year report of
reserves, while the year-end reserves were determined by the company's
reservoir engineering staff. 

Year-End 2011 vs. Mid-Year 2013

The following table compares proved, probable and possible reserve amounts for
year-end 2011 when Dune completed its financial restructuring and mid-year
2013.

                                    MMboe         MMboe
Reserve Category                    Year-End 2011 Mid-Year 2013 Increase
Proved Developed (PDP)              5.0           5.1           2%
Proved Developed Behind Pipe (PDNP) 3.6           4.1           14%
Proved Undeveloped (PUD)            4.6           7.4           61%
Total Proved                        13.2          16.6          26%
Probable                            1.1           6.3           83%
Possible                            .6            7.7           92%
Grand Total                         14.9          30.6          105%

In this 18 month time frame proved reserves increased 26% and proved, probable
and possible reserves increased 105%.

The following table compares PV@10% value of our reserves by category from
year-end 2011 to mid-year 2013.  Pricing at year-end 2011 was $92.91/Bo and
$4.12/MCFG and pricing for mid-year 2013 was $104.79/Bo and $3.65/MCFG.

                          (MM$)         (MM$)
Reserve Category          Year-End 2011 Mid-Year 2013 Increase
Proved Developed (PDP)    96.2          107.9         11%
Proved Undeveloped (PDNP) 42.8          60.1          42%
Proved Undeveloped (PUD)  111.0         170.9         54%
Total Proved              250.0         338.9         35%
Probable                  36.8          198.9         440%
Possible                  2.4           217.5         896%
Grand Total               289.2         754.9         161%

In this 18 month period proved reserve value increased 35% while proved,
probable and possible increased 161%.

As seen below, over this time frame we have invested $56.4 million of new
capital, excluding ARO, and produced 1.28 MMboe which results in a finding and
development cost of $12.26/Boe.   Reserve replacement has been 359% in this 18
month period.

Reserve Reconciliation             MMboe
Year-End 2011 Proved Reserves      13.23
18 Months Production               <1.28>
Additions/Revisions                4.60
Mid-Year 2013 Proved Reserves      16.55
Investment (MM$)                   56.40
Finding and Development Cost $/Boe 12.26

Leeville Field, Lafourche Parish, Louisiana

As stated earlier, the majority of the increases in reserves were the result
of the drilling program at our Leeville Field.  We invested approximately $18
million in the field over the timeframe.  Below shows the increase in reserves
and PV@10% value associated with the Leeville Field.

                  (MMboe)       (MMboe)       (MM$)              (MM$)

Reserve Category  Mid-Year 2011 Mid-Year 2013 Year-End           Mid-Year 2013
                                              2011      
Proved            2.1           6.4           45.1               180.6
Possible/Probable ---           14.0          -----              409.8
Total             2.1           20.4          45.1               590.4

Major Field Breakout by Reserves (MMboe)

Field             Proved Possible/Probable Total
Leeville          6.4    12.8              19.2
Garden Island Bay 1.7    .6                2.3
Bateman Lake      2.0    .3                2.3
Chocolate Bayou   .6     .3                .9
Other             5.9    -----             5.9
Total             16.6   14.0              30.6

Major Field Breakout by PV@10% Value (MM$) and Capital Investment (MM$)

                                           Capital Investment
Field             Proved Possible/Probable Proved Possible/Probable
Leeville          180.6  399.8             46.9   71.1
Garden Island Bay 32.9   3.2               17.1   8.9
Bateman Lake      18.3   2.2               12.4   1.8
Chocolate Bayou   11.9   10.6              1.8    2.1
Other             94.8   .6                20.6   .2
Total             338.5  416.4             98.8   84.1

Leeville now accounts for 39% of our proved reserves and 96% of our
probable/possible reserves.   53% of the PV@10% value of proved reserves and
96% or the PV@10% value of the possible/probable reserves are associated with
the Leeville Field.  To bring all these reserves at Leeville to the proved
developed producing category will require an investment of $118 million over
the next several years.  To bring all of the Company's defined reserves to a
proved developed producing category will require an investment of $182.9
million.

Garden Island Bay

In addition to the opportunities defined in our mid-year reserve report we
have identified an additional 17 prospects at Garden Island Bay with 21.8
MMboe of reserve potential requiring an investment of $219 million in order to
convert these exploratory reserves into proved developed production.  The much
higher risk, higher potential subsalt potential could possibly add another
18.7 MMboe of reserve potential and would require a $147 MM capital
commitment. 

Dune will record an impairment of oil and gas properties of $29.6 million in
the third quarter of 2013. This impairment primarily resulted from the impact
of lower expected future oil prices on the economic life of the Garden Island
Bay field proved reserves.  The application of this non-cash accounting
assessment was triggered by the publication of the mid-year, D&M Reserve
Report and the backwardation of the published strip price of WTI oil on the
effective date of the Report

Chocolate Bayou

In the June 2013 report, the Wieting #31 was classified with probable reserves
of 219 Mbo and 2.4 Bcfg gross.  The well has been drilled through the 12,000 S
sand and logged apparent hydrocarbon pays in this zone.  We anticipate first
production from this well in 30 to 45 days.  The assumed initial production in
the well based on the D&M reserve report is 3.3 MMcfg/day and a 306 Bo/day
gross.  Dune has a 50% working interest and a 44% net revenue interest in the
well.  Assuming a successful completion, these probable reserves will be
reclassified as PDP reserves.

Remainder 2013 / 2014 Budget

The reserve report currently envisions $14.3 million of capital for the
remainder of the year associated with the proved reserves and $45.8 million of
capital in 2014 for exploitation of the proved reserves. 

The Company is in the process of developing a risk-adjusted budget that will
fund some exploratory projects in our Garden Island Bay field in addition to
some of the probable/possible reserves in our mid-year report for the
remainder of 2013 and 2014.  This risked capital budget will be adapted to the
constraints of our available capital, which currently is limited to free cash
flow and availability under our revolver.  The revolver availability is
currently $50 million with $20 million drawn and $2 million of standby letters
of credit issued.  However, actual availability is not based solely on the
undrawn/unused portion of the revolver.  Borrowing capacity is further limited
by the quarterly Debt/EBITDAX of less than 4.0 to 1.0.  The June reserve
report has been submitted to our banks for a redetermination of the borrowing
base as required under the credit agreement.

James A. Watt, President and CEO of the company stated, "Post the
restructuring late in 2011, we have made many successful investments that have
increased reserves and production and defined additional upside exploratory
opportunities.  Our potential for organic growth far exceeds our current cash
flow and availability under our revolver.   We will continue carefully
monitoring our capital program to achieve maximum production from our asset
base while staying within the constraints of our credit agreements." 

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.

Investor Contact:
Steven J. Craig
Sr. Vice President Investor Relations and Administration
713-229-6300

SOURCE Dune Energy, Inc.
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