Production
Dune Energy, Inc. is forecasting 2008 production of approximately 20 Bcfe, or an average of 55 MMcfe/day. In 2007 Dune produced approximately 9.0 Bcfe, with 3.8 Bcfe produced in the fourth quarter.
Production volumes in the fourth quarter of 2007 were 281 Mbbls of oil and 2.15 Bcf of natural gas, or 3.8 Bcfe for the fourth quarter and 9.0 Bcfe for the full year 2007. This compares with 17 Mbbls of oil and 0.43 Bcf of natural gas, or 0.53 Bcfe for the fourth quarter of 2006, and 1.1 Bcfe for the full year 2006. In 2007, the average sales price per barrel of oil was $76.14, and $7.25 per Mcf for natural gas, as compared with $59.77 per barrel and $5.99 per Mcf, respectively, in 2006.
During the final week of 2007, Dune's production averaged 44 MMcfe/day. The year-end full capacity rate was 52 MMcfe/day.
Reserves
Dune Energy Inc. announced year end 2007 reserves totaled 175 Bcfe, consisting of 117 Bcf of natural gas and 9.6 MMbbls of oil. Approximately 67% of the reserves are natural gas. Proforma for the acquisition of Goldking Energy Corporation in May 2007, year end 2006 reserves totaled 142 Bcfe. Prior to the Goldking transaction, Dune reported proved reserves of 29.7 Bcfe at year end 2006. The reserve report was prepared by DeGolyer and McNaughton, an independent reservoir engineering firm.
Proved developed producing reserves (PDP) totaled 58.1 Bcfe, Proved Developed Non-Producing (PDNP) was 60.4 Bcfe, and Proved Undeveloped (PUD) was 56.2 Bcfe. A significant portion of the PDNP (behind pipe) reserves are associated with wells in the company's Chocolate Bayou, Comite, and Garden Island Bay fields, which were drilled prior to year end but have not yet commenced production. The SEC Present Value (PV@10%), based on year end pricing of $7.33/Mcfe and $92.66/bbl, totaled $733.1MM. On a proforma basis, Dune replaced approximately 354% of 2007 production of 12.9 Bcfe.