Dune Energy, Inc. has declared record operating results for the fourth quarter and calendar year 2007.

Post the acquisition of Golding Energy, Dune commenced an aggressive development drilling program within its producing fields. In the Barnett Shale play, located primarily in Denton and Wise Counties of North Texas, we drilled 15 wells and acquired another 3 wells in 2007. At year end 2007, proved reserves attributable to our Barnett Shale properties rose 35% from 24.7 Bcfe to 33.4 Bcfe. At our Garden Island Bay field, located in Plaquemines Parish, Louisiana, we drilled 10 wells and realized significant production increases.

April production at Garden Island Bay was 5.8 MMcfe/day and December averaged 15.1 MMcfe/day, a 160% increase. At our Comite field, located in East Baton Rouge Parish, Louisiana, we sidetracked an existing well to a deeper zone and established new production and new proved reserves. At Chocolate Bayou, located in Brazoria County, Texas, we drilled a development well with an exploratory extension and established a potentially significant new reservoir. The well has been completed in the shallower primary target at rates exceeding 3 MMcfe/day and 400 Bbl/day.

Additional drilling is anticipated in this field during 2008. Dune retained a 100% working interest in the Barnett Shale, Garden Island Bay, Comite and Chocolate Bayou drilling programs in 2007. In addition, we drilled several wells within other fields, and completed numerous workovers, resulting in production increasing to 44 MMcfe/day at year end, as compared with 29 MMcfe/day (proforma) prior to the Goldking Energy acquisition. This represented a 52% increase in production volumes. Proforma proved reserves in the Gulf Coast properties increased from 117.1 Bcfe to 141.9 Bcfe at year end 2007, a 21% increase. Capital expenditures for these projects totaled $149.1 million. Total proved reserves rose 23% from 142 Bcfe to 175 Bcfe at year end 2007.

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