Dune Energy, Inc. (Dune), incorporated on November 20, 1998, is an independent energy company engaged in the exploration, development, and acquisition of natural gas and crude oil properties. The Company's operations are focused in the states of Texas and Louisiana. Dune has six primary properties: Barnett Shale in the North Texas Fort Worth Basin; Bayou Couba in St. Charles Parish, Louisiana; Welder Ranch in Victoria County, Texas; Pearsall Field in Frio County, Texas, and Los Mogotes Field in Zapata County, Texas. The Company sells its oil and gas products primarily to pipelines and refineries in the United States. Barnett Shale Properties On November 4, 2005, Dune entered into an amended and restated asset purchase and sale agreement (the Voyager Agreement) with Voyager Partners, Ltd. (Voyager) to acquire 95% of the producing and non-producing oil and natural gas properties and related property and equipment owned by Voyager located in the North Texas Fort Worth Basin, with Voyager retaining a 5% ownership interest in the properties (the Voyager Acquisition). The vast majority of these properties are located in Denton County, with the remainder in Wise County, both on the fairway of the prolific Barnett Shale in the North Texas Fort Worth Basin. The Voyager Agreement divides the Barnett Shale Properties into three tranches, each of which has a separate closing date. A closing with respect to the Tranche 1 assets occurred on December 16, 2005. The Tranche 1 assets that the Company purchased include working interests (ranging between 92% and 95%) in approximately 950 gross acres in Denton and Wise Counties, Texas, as well as four producing wells thereon. As part of the Voyager Acquisition, Voyager assigned to Dune an asset purchase agreement with a third-party relating to certain additional oil and gas properties in the Barnett Shale. On November 17, 2005, pursuant to the asset purchase agreement assigned by Voyager and an additional purchase agreement between Dune and certain third parties, the Company acquired working interests (ranging between 92% and 100%) in certain oil and gas leases covering approximately 320 gross acres in Denton County, Texas, as well as an undivided interest in four producing wells thereon, and all of the sellers' personal property, equipment and contract rights with respect thereto (the Springside Properties). As a result of the acquisition of the Voyager Tranche 1 assets and the Springside Properties, the Company has working interests (ranging between 92% and 100%) in 1,270 gross acres in the Barnett Shale, as well as interests in eight producing wells and one well undergoing completion thereon. Dune has identified 22 future drilling locations on this acreage. Dune Operating Company (DOC), the Company's wholly owned subsidiary, is the operator of record of the Barnett Shale Properties. The Barnett Shale covers 15 Texas counties. During the year ended December 31, 2005, the Barnett Shale was producing in excess of 1,200 million cubic feet per day of natural gas. The Barnett Shale properties reside in the core area of the Barnett Shale where wells have demonstrated superior economics, and are located in areas that are not subject to fracture related water encroachment. Bayou Couba Property On October 19, 2005, Dune entered into a definitive exploration and development agreement (the ANEC Agreement) with American Natural Energy Corporation (ANEC). Pursuant to the ANEC Agreement, which has an effective date of August 26, 2005, the Company acquired certain exploration and development rights in ANEC's joint development agreement with ExxonMobil Corp. (the development agreement), covering approximately 11,000 contiguous acres in St. Charles Parish, Louisiana (the Bayou Couba Field). ExxonMobil Production Company delivered its consent to the Company's participation on September 12, 2005. Of the 11,000 acres covered by the development agreement, approximately 1,300 acres pertain to a lease referred to as the Delta Securities Lease. The ANEC Agreement provides Dune with the ri

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