Dune Energy to sell Barnett Shale assets

Proceeds from the sale, which will be effective May 1 and close on or before July 31, will be used to pay off debt and as general working capital.

As of Dec. 31, Dune's Barnett Shale proved developed reserves totaled 19.3 billion cubic feet of natural gas equivalent in 35 producing wells, plus six wells with behind pipe pay, or undeveloped zones, awaiting specialized engineering.

An additional 13 proved developed locations contained an estimated 14.1 billion cubic feet of natural gas equivalent of net reserves, the company said.

Dune said it expects to replace the production lost as a result of the sale and backed its 2008 production guidance of 15 billion cubic feet of natural gas equivalent.

Second quarter production is expected to average about 40 million cubic feet of natural gas equivalent per day, the company said.