During the negotiation of this agreement, all major shareholders reviewed certain information pursuant to the terms of confidentiality agreements. The information provided to the investors was based on the Company's June 2012 DeGolyer and MacNaughton reserve report, material aspects of which were disclosed in a Company press release of August 8, 2012 and an 8-K of the same date, and reflect various Company forecasts about potential operating results based on assumptions regarding the amount and timing of capital infusions. These assumptions varied materially from the terms of the financing. Additionally the investors were provided Company projections associated with the Garden Island Bay intermediate level drilling program as described more fully on the Company's web site. Such projections showed the full potential of each project within the Company's portfolio of drilling opportunities without regard to risk, capital allocation or specific timing considerations.
The following contains updated information concerning the Company's operations that was provided to the investors in connection with the financing, but which has not yet been publicly released:
In October of 2012, the Company commenced the non-operated drilling program within the Leeville field as described in prior releases. To date two wells have been cased and a third well will be cased in the next few days. All three wells have apparent hydrocarbon pays by log analysis. Dune has a 40% working interest in these wells. It is anticipated that the operator will commence completion operations on these wells in January of 2013. Additionally, the approximately 20,500 foot exploratory well at Leeville, the SL #20783, in which Dune has a 20% working interest should spud in January of 2013. Dune anticipates moving a drilling rig into the Garden Island Bay field in mid-January for recompletion work along with drilling the "Kappa" PUD development location and the "Epsilon" intermediate level exploratory test. The Company is in the process of developing a full capital and expense budget for 2013 and beyond incorporating this new liquidity in a drilling program across the Company's assets. When complete and approved by the Board of Directors, such budget and resultant guidance will be communicated to all shareholders.