Dune Energy, Inc. had, pursuant to its farmout agreement with Chesapeake Energy Corp., completed and placed on production two wells on its Welder Ranch property, located in Victoria County, Texas.

Both wells are operated by Chesapeake. Dune was originally carried to casing point in both wells and elected to participate in both completions.

The Welder Ranch #1 has produced at an average gross rate of 1.25 Mmcfe/d (1.1 Mmcf/d plus 25 b/d) for the past four days.

The Welder Ranch #2 has produced at an average gross rate of 3.6 Mmcfe/d (2.8 Mmcf/d plus 127 b/d) for the past seven days.

Dune owns a 25% WI and a 17.15% NRI in the Welder Ranch #1, and a 23.72% WI and a 16.27% NRI in the Welder Ranch #2.