Dune Energy has reached an agreement in principle to sell its interests in the South Florence field for $30 million to a private party. As of December 31, 2009, Dune's interest in this field corresponded to 11.9 Bcfe of proved reserves based on an independent reserve report. Production from the field has averaged approximately 3.8 Mmcfe/day during the first quarter of 2010. Dune expects to close this sale early in the third quarter of 2010, with an effective date of May 1, 2010. Dune anticipates that the sale will be subject to negotiation and execution of definitive purchase and sale documents, modification or waiver of applicable provisions of Dune's credit facility, approval by Dune's Board of Directors, obtaining an independent opinion as to fair value of the property to be sold, and other customary closing conditions. Dune expects to use proceeds from the sale to either temporarily or permanently repay borrowings under its $40 million revolving credit facility, and / or to invest in new assets or fund maintenance, repair or improvement of its existing properties and assets.

2010 Drilling Plans Chocolate Bayou, Brazoria County, Texas Dune Energy anticipates spudding the Wieting #33 well in June 2010 to test an approximately 60 Bcfe IP Farms sand prospect at 14,000 feet. Dune will retain a 50% interest in the well and offset locations. In 2007, Dune drilled the Wieting #30, 1,400 feet northeast of this planned well, which penetrated the IP Farms interval with gas shows approximately 400 feet down dip of the proposed #33 location. The Wieting #30 was completed in the shallower Andrau Sand, with initial production rates of 6.5 Mmcfg/day and 764 BO/day. In 2009, Dune participated in the Wieting #32, which was completed in the S Sand formation, approximately 300 feet above the Andrau Sand, with initial production rates of 7.4 Mmcfg/day and 732 BO/day. Dune has a 100% working interest in the Wieting #30 and a 50% working interest in the Wieting #32.

Garden Island Bay Field, Plaquemines Parish, Louisiana In the fourth quarter of 2010, post hurricane season, Dune intends to initiate a three well exploratory program in the Garden Island Bay Field to test targets on the northwest side of the field at between 12,000 and 14,000 feet. These three tests have potential reserves of 7.8 Mmboe, all of which have been imaged with depth-migrated, 3-D seismic data. Dune intends to maintain a 50-100% working interest in these exploratory oil prospects depending on capital availability at the time.

In addition, Dune and its partners have developed a 22,000 foot subsalt prospect in the field with gross unrisked reserve potential of approximately 100 Mmboe. Dune anticipates a well will be spud under this program in the fourth quarter of 2010, with Dune retaining approximately a 15% interest in this high potential oil prospect.

Tags: Dune Energy Inc.