Dune Energy, Inc. provides an update of its Barnett Shale drilling operations, located within the core fairway of the north Texas Fort Worth Basin.

Recent activity follows:

-- The Guyer #1 was placed on production November 20, 2006, and is currently producing 1.8 Mmcfe/d. The Guyer #2, initially placed on production November 2, 2006, is presently producing 1.4 Mmcfe/d. Dune owns a 95% WI and a 71.3% NRI in these wells.

-- The Vaughn #1 was placed on production November 21, 2006, and is currently producing approximately 300 Mcfe/d. Management expects that rate to rise, as the well is still cleaning from the frac. Dune owns a 95% WI and a 74.1 % NRI in this well.

-- The Denton Country Club ("DCC") #3 (a deviated hole) was recently spud and is drilling ahead. Dune anticipates reaching total depth in about one month. Both the DCC #5 and DCC #4 will be fraced as soon as the DCC #3 has been completed. Dune owns a 95% WI and a 69.1% NRI in the DCC lease.

-- The Corbin #1 and the Bernice Jones #2 will be fraced after the completion of a pipeline tie-in, now expected in late December, 2006, and is expected to begin gas sales a week thereafter. Dune owns a 95% WI and a 74.1% NRI in the Corbin #1, and a 95% WI and a 70.5% NRI in the Bernice Jones #2.

-- Dune has permitted one vertical and one horizontal well on its Barnett Shale acreage, which the company expects to drill after the completion of the DCC #3.

Dr. Amiel David, President and COO, stated, "We continue to be quite pleased with recent Barnett Shale results on our high-quality acreage and multi-year inventory of drilling locations in this core area. In addition, we will meaningfully accelerate our drilling program, subject to financing, when Dune purchases remaining fairway properties from Voyager Partners pursuant to our existing Purchase and Sale Agreement."