Dune Energy acquires Goldking Energy

Dune Energy Inc., Houston, completed the $320.5 million purchase of the stock of Goldking Energy Corp, Houston.

By OGJ editors
HOUSTON, May 16 -- Dune Energy Inc., Houston, completed the $320.5 million purchase of the stock of Goldking Energy Corp, Houston.

The acquired reserves total 112.4 bcf of gas equivalent, 56% of which is natural gas. The properties total 65,000 net acres in established producing areas and 3D seismic over several major fields.

Acquired are interests in 23 land fields and 136 producing wells in Louisiana and Texas, including Garden Island Bay field in Plaquemines Parish, La. The fields have not had deeper exploration or the application of modern technology.

Dune and Goldking assets combine into a company with 142 bcf of gas equivalent of proved reserves as of Dec. 31, 2006, covering 28 Gulf Coast fields and the Fort Worth basin Barnett shale fairway.

Production of the combined entity averaged 27 MMcfd of gas equivalent in the quarter ended Mar. 31 and exceeds 30 MMcfd of gas equivalent currently. Numerous wells are to go on production in the current quarter.

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