8/4/2005 2:02:14 PM ET News Release Index Dune Energy, Inc....

8/4/2005 2:02:14 PM ET News Release Index


Dune Energy, Inc. Announces New Production on Welder Ranch and Increased Production on its Pearsall Property

HOUSTON, Texas, August 4, 2005 - Dune Energy, Inc. ("Dune" or the "Company") (AMEX: DNE), reported today that the Vaquero #2 well, drilled on Dune's Welder Ranch property in Victoria County, Texas, was put on production on August 1, 2005, and is presently flowing at a rate of 2.0 MMcfe/d. Dune intends to frac the Vaquero #2 in approximately one month, at which time management believes that there will be a very significant increase in production. Dune holds a 51.9% net working interest in the Vaquero #2.

Dune also reported that its 2 dual horizontal lateral wells drilled into the Lower Austin Chalk trend in the Pearsall Field in Frio County, Texas, are currently producing oil at a combined rate of 180 B/d, an increase of 20% since July 12, 2005. Management expects continued production increases as water used during drilling operations is recovered. Pending continued testing and rig availability, the Company anticipates drilling up to an additional 22 locations on its leased and optioned acreage. Dune owns a 27% working interest in the first Pearsall well, and a 40% working interest in the second.