Dune Energy, Inc. via three new agreements, has significantly increased its acreage position in the Fort Worth Basin Barnett Shale to more than 8,000 gross acres from some 2,900 gross acres at the beginning of 2007.

Covering three separate privately negotiated "drill to earn" transactions, Dune Properties, Inc., a 100% owned subsidiary of Dune Energy, has the right to earn approximately 5,000 additional gross acres within Wise, Denton and Montague counties. In addition, as part of these transactions, Dune acquired 3 new wellbores for costs incurred to date, plus a commitment to complete all 3 wells.

Dune has agreed to carry the original investors in future wells for between 6% and 10% working interest through production facilities, depending upon the net revenue interest ("NRI") delivered on the properties. There are approximately 2,900 gross acres within the core area of the Barnett Shale in Wise and Denton counties, and some 2,100 gross acres located in southeastern Montague County. Dune must maintain a continuous drilling program in order to have access to continuing rights for the acreage. Management estimates, pursuant to the ongoing agreement, that there are approximately 100 drilling locations on this new acreage.

Presently, Dune has one rig under long term contract dedicated to drilling its Barnett Shale acreage, and is in the process of finalizing a contract for a second rig. For the remainder of 2007 and 2008, management intends to utilize 2 to 3 rigs in order to greatly accelerate its development program.

Since Dune commenced its Barnett Shale drilling program late in 2005, it has completed, and to a lesser extent acquired 26 wells. Production for the first quarter of 2007 averaged 3.9 MMcfe/day net to Dune. Presently, 5 wells are awaiting fracture stimulation or pipeline hook up. Management expects to drill an additional 8 to 10 wells through the remainder of the year, providing a calendar 2007 exit rate exceeding 10 MMcfe/day.

Alan D. Gaines, Chairman of the Board of Directors, stated, "This greatly expands our drillable acreage within the prolific Barnett Shale. Dune will continue to expand its footprint by aggressively seeking out additional corporate opportunities within this core area."

James A. Watt, President and Chief Executive Officer, commented, "Our Barnett Shale drilling program provides consistent low risk, long life production, cash flow and reserve additions. With these new agreements, Dune will have access to numerous additional locations with a multi-year drilling inventory."