Dune Energy, Inc. (DUNR) tannounced results for the second quarter of calendar year 2012.

Revenue for the second quarter of 2012 totaled $13.1 million as compared with $15.9 million for the second quarter of 2011. Production volumes in the second quarter were 105 Mbbls of oil and .75 Bcf of natural gas, or 1.38 Bcfe. This compares with 114 Mbbls of oil and .72 Bcf of natural gas, or 1.40 Bcfe for the second quarter of 2011.

Earnings

Net gain available to common stockholders totaled $0.9 million for the second quarter of 2012. This compares with an $18.9 million loss in 2011. Preferred stock dividends were $5.1 million in the second quarter of 2011. The preferred stock was eliminated as part of the December 22, 2011 restructuring and was converted into $4 million cash and 1.5% of the common shares outstanding on a restructured basis. Consequently, there were no preferred stock dividends in 2012.

Garden Island Bay Field

In the first half of the year we completed two drilling wells the SL214 #917 and the SL214 #915ST along with two new zone work overs. Currently the field is capable of producing approximately 900 Boe/day up from an average of 350 Boe/day in December of 2011 prior to the investment. Several behind pipe zones were identified in the two new wells drilled that we expect to be completed at a later date. After hurricane season, we anticipate resuming a drilling and work over program in the field.

Leeville Field

Dune owns 40% working interest in a joint venture within this field and a private party owns the remaining 60%. This party has proposed initiating a one rig drilling program commencing in September and continuing through 2013 in order to drill several newly identified PUD locations based on reprocessed and depth migrated 3-D seismic data. Our 40% interest in each of these PUD locations will cost approximately $1.7-$1.9 million and we expect to result in net oil production of 100-150 BO/day. Each well takes approximately 30-40 days to drill and complete. In addition, a 20,500 foot exploratory well has been proposed in which Dune would have a 20% working interest. Our net dry hole exposure on this well would be approximately $3.8 million and reserve exposure would be approximately 800 Mboe.

Capital Program

During the first half of the year we expended approximately $19.2 million for capital projects including the 4 wells