Dune Energy (DUNRQ) Inactive 10-Q2 May 142014 Q1 Quarterly reportFinancial data

Company Profile

Document_and_Entity_Informatio

Document and Entity Information	3 Months Ended
Document and Entity Information	Mar. 31, 2014	2-May-14
Document Information	'	'
Document Type	'10-Q	'
Amendment Flag	'false	'
Document Period End Date	31-Mar-14	'
Document Fiscal Year Focus	'2014	'
Document Fiscal Period Focus	'Q1	'
Trading Symbol	'DUNR	'
Entity Registrant Name	'DUNE ENERGY INC	'
Entity Central Index Key	'0001092839	'
Current Fiscal Year End Date	'--12-31	'
Entity Filer Category	'Smaller Reporting Company	'
Entity Common Stock, Shares Outstanding	'	73,176,683

Consolidated_Balance_Sheets

Consolidated Balance Sheets (USD $)	Mar. 31, 2014	Dec. 31, 2013
Current assets:	'	'
Cash	$3,443,932	$3,251,371
Accounts receivable	8,199,986	7,258,425
Current derivative asset	'	7,544
Prepayments and other current assets	5,049,382	1,398,947
Total current assets	16,693,300	11,916,287
Oil and gas properties, using successful efforts accounting-proved	302,094,440	293,745,839
Less accumulated depreciation, depletion and amortization	-64,718,343	-61,927,723
Net oil and gas properties	237,376,097	231,818,116
Property and equipment, net of accumulated depreciation of $248,109 and $227,207	136,830	152,903
Deferred financing costs, net of accumulated amortization of $1,807,251 and $1,586,904	1,615,396	1,835,743
Other assets	3,916,678	3,783,312
Other Assets, Noncurrent, Total	5,668,904	5,771,958
TOTAL ASSETS	259,738,301	249,506,361
Current liabilities:	'	'
Accounts payable	6,479,354	10,139,205
Accrued liabilities	10,260,187	9,895,057
Current maturities on long-term debt (see note 2)	2,141,419	994,895
Total current liabilities	18,880,960	21,029,157
Long-term debt (see note 2)	97,968,641	84,180,940
Long-term derivative liability	200,113	'
Other long-term liabilities	21,745,222	21,449,651
Total liabilities	138,794,936	126,659,748
Commitments and contingencies	'	'
STOCKHOLDERS' EQUITY	'	'
Preferred stock, $.001 par value, 1,000,000 shares authorized, 250,000 shares undesignated, no shares issued and outstanding	'	'
Common stock, $.001 par value, 4,200,000,000 shares authorized, 73,745,382 and 72,644,643 shares issued	73,746	72,645
Treasury stock, at cost (221,872 and 145,270 shares)	-296,492	-223,821
Additional paid-in capital	178,494,918	177,832,574
Accumulated deficit	-57,328,807	-54,834,785
Total stockholders' equity	120,943,365	122,846,613
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$259,738,301	$249,506,361

Consolidated_Balance_Sheets_Pa

Consolidated Balance Sheets (Parenthetical) (USD $)	Mar. 31, 2014	Dec. 31, 2013
Property and equipment, accumulated depreciation	$248,109	$227,207
Deferred financing costs, accumulated amortization	$1,807,251	$1,586,904
Preferred stock, par value	$0.00	$0.00
Preferred stock, shares authorized	1,000,000	1,000,000
Preferred stock, shares undesignated	250,000	250,000
Preferred stock, shares issued	'	'
Preferred stock, shares outstanding	'	'
Common stock, par value	$0.00	$0.00
Common stock, shares authorized	4,200,000,000	4,200,000,000
Common stock, shares issued	73,745,382	72,644,643
Treasury stock, shares	221,872	145,270

Consolidated_Statements_of_Ope

Consolidated Statements of Operations (USD $)	3 Months Ended
Consolidated Statements of Operations (USD $)	Mar. 31, 2014	Mar. 31, 2013
Revenues:	'	'
Oil and gas revenues	$11,989,010	$12,121,663
Other revenues	'	963,150
Total revenues	11,989,010	13,084,813
Operating expenses:	'	'
Lease operating expense and production taxes	5,513,562	6,861,401
Accretion of asset retirement obligation	546,684	402,732
Depletion, depreciation and amortization	2,801,045	3,167,886
General and administrative expense	2,651,285	2,588,082
Loss on settlement of asset retirement obligation liability	'	22,920
Total operating expense	11,512,576	13,043,021
Operating income	476,434	41,792
Other income(expense):	'	'
Other income	460	602
Interest expense	-2,720,932	-2,434,979
Loss on derivative instruments	-249,984	-817,590
Total other income (expense)	-2,970,456	-3,251,967
Net loss	($2,494,022)	($3,210,175)
Net loss per share:	'	'
Basic and diluted	($0.03)	($0.05)
Weighted average shares outstanding:	'	'
Basic and diluted	72,949,157	59,041,035

Consolidated_Statements_of_Cas

Consolidated Statements of Cash Flows (USD $)	3 Months Ended
Consolidated Statements of Cash Flows (USD $)	Mar. 31, 2014	Mar. 31, 2013
CASH FLOWS FROM OPERATING ACTIVITIES	'	'
Net loss	($2,494,022)	($3,210,175)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:	'	'
Depletion, depreciation and amortization	2,801,045	3,167,886
Amortization of deferred financing costs	220,347	196,452
Stock-based compensation	663,445	632,305
Loss on settlement of asset retirement obligation liability	'	22,920
Accretion of asset retirement obligation	546,684	402,732
Unrealized loss on derivative instruments	207,657	842,288
Changes in:	'	'
Accounts receivable	-931,084	-1,074,692
Prepayments and other assets	-3,650,435	2,098,029
Payments made to settle asset retirement obligations	-51,000	-76,125
Accounts payable and accrued liabilities	-1,707,133	5,887,765
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES	-4,394,496	8,889,385
CASH FLOWS FROM INVESTING ACTIVITIES	'	'
Investment in proved and unproved properties	-8,348,601	-18,426,091
Purchase of furniture and fixtures	-4,829	-130,006
Increase in other assets	-133,366	-71,092
NET CASH USED IN INVESTING ACTIVITIES	-8,486,796	-18,627,189
CASH FLOWS FROM FINANCING ACTIVITIES	'	'
Payments on short-term debt	-479,447	-695,803
Increase in long-term debt issuance costs	'	-5,522
Common stock issuance costs	'	-75,994
Purchase of treasury stock	-72,671	-119,232
Proceeds from short-term debt	1,625,971	'
Proceeds from long-term debt	12,000,000	'
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES	13,073,853	-896,551
NET CHANGE IN CASH BALANCE	192,561	-10,634,355
Cash balance at beginning of period	3,251,371	22,793,916
Cash balance at end of period	3,443,932	12,159,561
SUPPLEMENTAL DISCLOSURES	'	'
Interest paid	651,289	562,198
Income taxes paid	'	'
NON-CASH INVESTING AND FINANCIAL DISCLOSURES	'	'
Accrued interest converted to long-term debt	1,787,701	1,593,608
Non-cash investment in proved and unproved properties in accounts payable	'	$789,201

Accounting_Policies_and_Basis_

Accounting Policies and Basis of Presentation	3 Months Ended
Accounting Policies and Basis of Presentation	Mar. 31, 2014
Accounting Policies and Basis of Presentation	'
	NOTE 1—ACCOUNTING POLICIES AND BASIS OF PRESENTATION
	Dune Energy, Inc., a Delaware corporation (“Dune” or the “Company”), is an independent energy company that was formed in 1998. Since May 2004, Dune has been engaged in the exploration, development, acquisition and exploitation of crude oil and natural gas properties. Dune sells its oil and gas production primarily to domestic pipelines and refineries. The Company’s operations are presently focused in the states of Texas and Louisiana.
	Dune prepared these financial statements according to the instructions for Form 10-Q. Therefore, the financial statements do not include all disclosures required by generally accepted accounting principles in the United States. However, Dune has recorded all transactions and adjustments necessary to fairly present the financial statements included in this Form 10-Q. The adjustments made are normal and recurring. The following notes describe only the material changes in accounting policies, account details or financial statement notes during the first three months of 2014. Therefore, please read these financial statements and notes to the financial statements together with the audited financial statements and notes thereto in our Annual Report on Form 10-K for the year ended December 31, 2013. The income statement for the three months ended March 31, 2014 cannot necessarily be used to project results for the full year.
	Reclassifications
	Certain prior year amounts in the consolidated financial statements have been reclassified to conform to the current year presentation.
	Revenue recognition
	Dune records oil and gas revenues following the entitlement method of accounting for production in which any excess amount received above Dune’s share is treated as a liability. If less than Dune’s share is received, the underproduction is recorded as an asset. Dune did not have an imbalance position in terms of volumes or values at March 31, 2014. Additionally, Dune records the sale of emission credits as other revenue in the period they are sold.
	Loss per share
	Basic earnings per share amounts are calculated based on the weighted average number of shares of common stock outstanding during each period. Diluted earnings per share is based on the weighted average numbers of shares of common stock outstanding for the periods, including dilutive effects of stock options and warrants granted. Dilutive options and warrants that are issued during a period or that expire or are canceled during a period are reflected in the computations for the time they were outstanding during the periods being reported. Since Dune has incurred losses for all periods, the impact of the common stock equivalents would be antidilutive and therefore are not included in the calculation.
	Fair value of financial instruments
	The Company’s financial instruments consist of cash, receivables, payables and long-term debt. The carrying amount of cash, receivable and payables approximates fair value because of the short-term nature of these items. The carrying amount of long-term debt approximates fair value due to the relationship between the interest rate on long-term debt and the Company’s incremental risk adjusted borrowing rate.

Debt_Financing

Debt Financing	3 Months Ended
Debt Financing	Mar. 31, 2014
Debt Financing	'
	NOTE 2—DEBT FINANCING
	Long-term debt consists of:


		March 31, 2014			December 31, 2013
	Revolving credit loan	$	34,000,000		$	22,000,000
	Insurance note payable		2,141,419			994,895
	Floating Rate Senior Secured Notes due 2016		63,968,641			62,180,940

	Total long-term debt		100,110,060			85,175,835
	Less: current maturities		(2,141,419	)		(994,895	)

	Long-term debt, net of current maturities	$	97,968,641		$	84,180,940

	Credit Agreement
	On December 22, 2011, concurrent with our Restructuring (as defined herein), Wayzata assigned to Bank of Montreal its rights and obligations under our existing Credit Agreement pursuant to an agreement, by and among the Company and Dune Properties, Inc., as borrowers, Dune Operating Company, as guarantor, and Wells Fargo and Wayzata, as agents and lenders. In connection with such assignment, on December 22, 2011, the Company entered into the Amended and Restated Credit Agreement, dated as of December 22, 2011 (the “New Credit Agreement”), among the Company, as borrower, Bank of Montreal, as administrative agent, CIT Capital Securities LLC, as syndication agent, and the lenders party thereto (the “Lenders”).
	The New Credit Agreement will mature on December 22, 2015. The Lenders have committed to provide up to $200 million of loans and up to $10 million of letters of credit, provided that the sum of the outstanding loans and the face amount of the outstanding letters of credit cannot exceed $200 million at any time and further provided that the availability of loans under the New Credit Agreement will be limited by a borrowing base (initially set at $63 million, reduced to $50 million as of May 1, 2012 and further reduced to $47.5 million as of December 17, 2013) as in effect from time to time, which is determined by the Lenders at their discretion based upon their evaluation of the Company’s oil and gas properties. The principal balance of the loans may be prepaid at any time, in whole or in part, without premium or penalty, except for losses incurred by the Lenders as a consequence of such prepayment. Amounts repaid under the New Credit Agreement may be reborrowed.
	As security for its obligations under the New Credit Agreement, the Company and its domestic subsidiaries have granted to the administrative agent (for the benefit of the Lenders) a first priority lien on substantially all of their assets, including liens on not less than 85% of the total value of proved oil and gas reserves and not less than 90% of the total value of proved developed and producing reserves.
	Generally, outstanding borrowings under the New Credit Agreement are priced at LIBOR plus a margin or, at the Company’s option, a domestic bank rate plus a margin. The LIBOR margin is 2.75% if usage is greater than 75% and steps down to 2.25% if usage is 50% or less and the domestic rate margin is 1.75% if usage is greater than 75% and steps down to 1.25% if usage is 50% or less. The Company is charged the above LIBOR margin plus an additional fronting fee of 0.25% on outstanding letters of credit, which are considered usage of the revolving credit facility, plus a nominal administrative fee. The Company is also required to pay a commitment fee equal to 0.50% of the average daily amount of unborrowed funds.
	The New Credit Agreement contains various affirmative and negative covenants as well as other customary representations and warranties and events of default.
	On September 25, 2012, the parties entered into an Amendment to the New Credit Agreement. Prior to the amendment, the New Credit Agreement provided that the Company would not, as of the last day of any fiscal quarter, permit its ratio of Total Debt (as such term is defined in the New Credit Agreement) as of such day to EBITDAX for the immediately preceding four fiscal quarters ending on such day to be greater than 4.0 to 1.0. The Amendment to the New Credit Agreement provided that the Company will not, as of the last day of the fiscal quarter ending September 30, 2012 or December 31, 2012, permit its ratio of Total Debt as of such day to EBITDAX for the immediately preceding four fiscal quarters ending on such day to be greater than 5.0 to 1.0. On March 31, 2013, and thereafter, the Company would not, as of the last day of the fiscal quarter, permit its ratio of Total Debt as of such day to EBITDAX for the immediately preceding four fiscal quarters ending on such day to be greater than 4.0 to 1.0. An amendment fee of $100,000 was paid for this change.
	On May 3, 2013, the parties entered into the Second Amendment to the New Credit Agreement. The Second Amendment to the New Credit Agreement provided that the Company will not, as of the last day of the fiscal quarter ending March 31, 2013 permit its ratio of Total Debt as of such day to EBITDAX for the immediately preceding four fiscal quarters ending on such day to be greater than 5.0 to 1.0. It further provides that the Company will not, as of the last day of the fiscal quarter ending June 30, 2013 permit its ratio of Total Debt as of such day to EBITDAX for the immediately preceding four fiscal quarters ending on such day to be greater than 4.5 to 1.0. On September 30, 2013, and thereafter, the Company will not, as of the last day of the fiscal quarter, permit its ratio of Total Debt as of such day to EBITDAX for the immediately preceding four fiscal quarters ending on such day to be greater than 4.0 to 1.0. An amendment fee of $100,000 was paid for this change.
	On December 17, 2013, the parties entered into the Third Amendment to the New Credit Agreement. The Third Amendment to the New Credit Agreement provides that (i) the Company will not, as of the last day of the fiscal quarter ending December 31, 2013 permit its ratio of Total Debt as of such day to EBITDAX for the immediately preceding four fiscal quarters ending on such day to be greater than 5.0 to 1.0 and (ii) the Company will not, as of the last day of the fiscal quarter ending March 31, 2014 permit its ratio of Total Debt as of such day to EBITDAX for the immediately preceding four fiscal quarters ending on such day to be greater than 5.0 to 1.0. On June 30, 2014, and thereafter, the Company will not, as of the last day of the fiscal quarter, permit its ratio of Total Debt as of such day to EBITDAX for the immediately preceding four fiscal quarters ending on such day to be greater than 4.0 to 1.0. In addition, the Amendment includes a “change of management” provision that specifies that should either our chief executive officer, James A. Watt or our chief financial officer, Frank T. Smith, Jr. die, become incompetent or disabled for 120 consecutive days or cease to be active in the Company’s affairs, an Event of Default (as such term is defined in the New Credit Agreement) shall be deemed to have occurred unless Mr. Watt or Mr. Smith is replaced within 120 days by an individual acceptable to the administrative agent. An amendment fee of $95,000 was paid for this change.
	The Company borrowed $12.0 million in the first quarter of 2014. Borrowings under the New Credit Agreement equaled $34.0 million and $2 million of letters of credit as of March 31, 2014. Subsequent to March 31, 2014, the Company borrowed an additional $3.0 million under the New Credit Agreement.
	Restructuring of Senior Secured Notes
	On December 22, 2011, the Company completed its restructuring (the “Restructuring”), which included the consummation of the exchange of $297,012,000 aggregate principal amount, or approximately 99%, of the Senior Secured Notes for 2,485,616 shares of the Company’s newly issued common stock, 247,506 shares of a new series of preferred stock that mandatorily converted into 35,021,098 shares of the Company’s newly issued common stock and approximately $49.5 million aggregate principal amount of newly issued Floating Rate Senior Secured Notes due 2016 (the “New Notes”). In addition to completing the exchange offer for the Senior Secured Notes, the Company completed a consent solicitation of the holders of the Senior Secured Notes, in which it procured the requisite consent of the holders of approximately 99% of the aggregate principal amount of the Senior Secured Notes to eliminate all the restrictive covenants and certain events of default in the Indenture.
	The New Notes were issued pursuant to an indenture, dated December 22, 2011 (the “New Notes Indenture”), by and among the Company, the guarantors named therein and U.S. Bank National Association, as trustee and collateral agent. The New Notes will mature on December 15, 2016. The Company did not receive any proceeds from the issuance of the New Notes.

	Interest on the New Notes is payable quarterly in arrears on March 15, June 15, September 15 and December 15 of each year, beginning on March 15, 2012. Subject to applicable law, interest accrues on the New Notes at a variable rate per annum equal to 13% plus the greater of 1.5% and Three-Month LIBOR, determined as of two London banking days prior to the original issue date and reset quarterly on each interest payment date. Such interest consists of (a) a mandatory cash interest component (that shall accrue at a fixed rate of 3% per annum and be payable solely in cash) and (b) a component that shall accrue at a variable rate and be payable in either cash or by accretion of principal. The Company has elected to increase the aggregate principal amount of the New Notes by a cumulative amount of $14,464,649 in lieu of making cash quarterly interest payments, including $1,787,701 during the quarter ended March 31, 2014 and $6,751,077 during the year-ended December 31, 2013. This results in an outstanding balance of $63,968,641 at March 31, 2014.

Oil_and_Gas_Commodity_Derivati

Oil and Gas Commodity Derivatives

3 Months Ended

Mar. 31, 2014

Oil and Gas Commodity Derivatives

NOTE 3—OIL AND GAS COMMODITY DERIVATIVES

In accordance with the requirements of the New Credit Agreement entered into in connection with the Restructuring, the Company entered into hedge agreements in January 2012. All derivative contracts are recorded at fair market value in accordance with FASB ASC 815 and ASC 820 and included in the consolidated balance sheets as assets or liabilities. The Company did not designate derivative instruments as accounting hedges and recognizes gains or losses on the change in fair value of the hedge instruments in current earnings.

For the three months ended March 31, 2014 and 2013 Dune recorded a loss on the derivatives of ($249,984) and ($817,590) composed of an unrealized loss on changes in mark-to-market valuations of ($207,657) and ($842,288) and a realized gain (loss) on cash settlements of ($42,327) and $24,698 respectively.

DUNE ENERGY, INC.

Current Hedge Positions as of March 31, 2014

Crude Trade Details

Instrument

Beginning

Ending

Floor

Ceiling

Fixed

Total

Bbl/d

Total

Date

Bbls

Volumes

2014

Collar

4/1/14

12/31/14

103,000

375

103,000

375

103,000

Days

275

Hedged Daily Production (bbl)

375

Natural Gas Trade Details

Instrument

Beginning

Ending

Floor

Ceiling

Fixed

Total

Mmbtu/d

Total

Date

Mmbtu

Volumes

2014

Collar

4/1/14

12/31/14

3.75

5.01

408,000

1,484

408,000

1,484

408,000

Days

275

Hedged Daily Production (mmbtu)

1,484

Restricted_Stock_Stock_Options

Restricted Stock, Stock Options and Warrants	3 Months Ended
Restricted Stock, Stock Options and Warrants	Mar. 31, 2014
Restricted Stock, Stock Options and Warrants	'
	NOTE 4—RESTRICTED STOCK, STOCK OPTIONS AND WARRANTS
	The Company utilizes restricted stock, stock options and warrants to compensate employees, officers, directors and consultants. Total stock-based compensation expense including options, warrants and restricted stock was $663,445 and $632,305 for the three months ended March 31, 2014 and 2013, respectively.
	Pursuant to a unanimous written consent dated March 5, 2012, the board of directors of the Company authorized the adoption of the Dune Energy, Inc. 2012 Stock Incentive Plan (the “2012 Plan”), to become effective immediately. The 2012 Plan is administered by the Compensation Committee of Dune’s board of directors. Under the 2012 Plan, the Compensation Committee may grant any one or a combination of incentive options, non-qualified stock options, restricted stock, stock appreciation rights and phantom stock awards, as well as purchased stock, bonus stock and other performance awards. The aggregate number of shares of common stock that may be issued or transferred to grantees under the Plan could not exceed 3,250,000 shares. On April 25, 2013, the Company’s board of directors approved an amendment to the Company’s 2012 Plan. The Plan amendment provided for an increase of 1,750,000 in the number of authorized shares in the Plan from 3,250,000 to 5,000,000. This amendment was subsequently approved by Dune’s shareholders.
	On March 5, 2014, the final one-third of the 400,000 remaining stock options granted to non-employee directors on March 5, 2012 vested. Subsequently, the non-employee directors voluntarily agreed to return the entire 400,000 options which will be canceled.
	On March 7, 2014, the Company issued a total of 1,000,000 restricted shares of its common stock to certain executive officers and employees of the Company under the 2012 Plan. These shares vest ratably over a three year period with the initial vesting occurring March 7, 2015. The fair value of the restricted stock grants was $1,000,000 with an unamortized value of $972,219 at March 31, 2014.
	On March 7, 2014, the Company issued 156,695 shares of common stock in lieu of the final 33% of the 2013 annual cash bonus for an officer of the Company. These shares vest ratably over a three year period with the initial vesting occurring March 7, 2015. The fair value of the restricted stock grants was $156,695 with an unamortized value of $152,342 at March 31, 2014.
	The following table reflects the vesting activity associated with the 2012 Plan, as amended:

	Grant Date	Shares			Shares			Shares			Shares
	Grant Date	Awarded			Canceled			Vested			Unvested
	March 5, 2012 stock options		600,000			—			(200,000	)		400,000
	March 5, 2012 stock grants		831,500			(138,330	)		(425,560	)		267,610
	October 1, 2012 stock grants		225,000			—			(75,001	)		149,999
	December 3, 2012 stock grants		659,933			(4,900	)		(218,354	)		436,679
	February 20, 2013 stock grant		103,978			—			(34,660	)		69,318
	April 25, 2013 deferred stock units		346,818			—			(154,143	)		192,675
	December 10, 2013 stock grant		579,996			—			—			579,996
	December 12, 2013 stock grant		156,695			—			—			156,695
	March 7, 2014 stock grant		156,695			—			—			156,695
	March 7, 2014 stock grant		1,000,000			—			—			1,000,000

			4,660,615			(143,230	)		(1,107,718	)		3,409,667

	Common shares available to be awarded at March 31, 2014 are as follows:

	Total shares authorized		5,000,000
	Total shares issued		(4,660,615	)
	Total shares canceled		143,230

	Total shares available		482,615

Fair_Value_Measurements

Fair Value Measurements	3 Months Ended
Fair Value Measurements	Mar. 31, 2014
Fair Value Measurements	'
	NOTE 5—FAIR VALUE MEASUREMENTS
	Certain assets and liabilities are reported at fair value on a recurring basis in Dune’s consolidated balance sheet. The following table summarizes the valuation of our investments and financial instruments by FASB ASC 820-10-05 pricing levels as of March 31, 2014:


		Fair Value Measurements
		at March 31, 2014 Using
		Level 1		Level 2			Level 3		Total
	Oil and gas derivative assets	$	—	$	—		$	—	$	—
	Oil and gas derivative liabilities		—		(200,113	)		—		(200,113	)

	Total	$	—	$	(200,113	)	$	—	$	(200,113	)

Commitments_and_Contingencies

Commitments and Contingencies	3 Months Ended
Commitments and Contingencies	Mar. 31, 2014
Commitments and Contingencies	'
	NOTE 6—COMMITMENTS AND CONTINGENCIES
	The Company, as an owner or lessee and operator of oil and gas properties, is subject to various federal, state and local laws and regulations relating to discharge of materials into, and protection of, the environment. These laws and regulations may, among other things, impose liability on the lessee under an oil and gas lease for the cost of pollution clean-up resulting from operations and subject the lessee to liability for pollution damages. In some instances, the Company may be directed to suspend or cease operations in the affected area. Dune maintains insurance coverage, which it believes is customary in the industry, although Dune is not fully insured against all environmental risks.

Remediation_Costs

Remediation Costs	3 Months Ended
Remediation Costs	Mar. 31, 2014
Remediation Costs	'
	NOTE 7—REMEDIATION COSTS
	In connection with the acquisition of Goldking, the Company inherited a remediation contingency, which after conducting its due diligence and subsequent testing, the Company believes is the responsibility of a third party. However, federal and state regulators have determined Dune is the responsible party for cleanup of this area. Dune has maintained a passive maintenance of this site since it was first discovered after Hurricane Katrina. The Company still believes another party has the primary responsibility for this occurrence but is committed to working with the various state and federal authorities on resolution of this issue. Plans for testing and analysis of various containment products and remediation procedures by third party consultants have been approved and in the third quarter of 2013, the Company recorded a liability of $4,586,000. Costs of $1,429,234 have been incurred through the first quarter of 2014 resulting in a $3,156,766 balance of which $377,766 is included in accrued liabilities and $2,779,000 is included in other long-term liabilities in the consolidated balance sheets at March 31, 2014.

Accounting_Policies_and_Basis_1

Accounting Policies and Basis of Presentation (Policies)	3 Months Ended
Accounting Policies and Basis of Presentation (Policies)	Mar. 31, 2014
Reclassifications	'
	Reclassifications
	Certain prior year amounts in the consolidated financial statements have been reclassified to conform to the current year presentation.
Revenue recognition	'
	Revenue recognition
	Dune records oil and gas revenues following the entitlement method of accounting for production in which any excess amount received above Dune’s share is treated as a liability. If less than Dune’s share is received, the underproduction is recorded as an asset. Dune did not have an imbalance position in terms of volumes or values at March 31, 2014. Additionally, Dune records the sale of emission credits as other revenue in the period they are sold.
Loss per share	'
	Loss per share
	Basic earnings per share amounts are calculated based on the weighted average number of shares of common stock outstanding during each period. Diluted earnings per share is based on the weighted average numbers of shares of common stock outstanding for the periods, including dilutive effects of stock options and warrants granted. Dilutive options and warrants that are issued during a period or that expire or are canceled during a period are reflected in the computations for the time they were outstanding during the periods being reported. Since Dune has incurred losses for all periods, the impact of the common stock equivalents would be antidilutive and therefore are not included in the calculation.
Fair value of financial instruments	'
	Fair value of financial instruments
	The Company’s financial instruments consist of cash, receivables, payables and long-term debt. The carrying amount of cash, receivable and payables approximates fair value because of the short-term nature of these items. The carrying amount of long-term debt approximates fair value due to the relationship between the interest rate on long-term debt and the Company’s incremental risk adjusted borrowing rate.

Debt_Financing_Tables

Debt Financing (Tables)	3 Months Ended
Debt Financing (Tables)	Mar. 31, 2014
Long-Term Debt	'
	Long-term debt consists of:


		March 31, 2014			December 31, 2013
	Revolving credit loan	$	34,000,000		$	22,000,000
	Insurance note payable		2,141,419			994,895
	Floating Rate Senior Secured Notes due 2016		63,968,641			62,180,940

	Total long-term debt		100,110,060			85,175,835
	Less: current maturities		(2,141,419	)		(994,895	)

	Long-term debt, net of current maturities	$	97,968,641		$	84,180,940

Oil_and_Gas_Commodity_Derivati1

Oil and Gas Commodity Derivatives (Tables)

3 Months Ended

Mar. 31, 2014

Hedge Positions

DUNE ENERGY, INC.

Current Hedge Positions as of March 31, 2014

Crude Trade Details

Instrument

Beginning

Ending

Floor

Ceiling

Fixed

Total

Bbl/d

Total

Date

Bbls

Volumes

2014

Collar

4/1/14

12/31/14

103,000

375

103,000

375

103,000

Days

275

Hedged Daily Production (bbl)

375

Natural Gas Trade Details

Instrument

Beginning

Ending

Floor

Ceiling

Fixed

Total

Mmbtu/d

Total

Date

Mmbtu

Volumes

2014

Collar

4/1/14

12/31/14

3.75

5.01

408,000

1,484

408,000

1,484

408,000

Days

275

Hedged Daily Production (mmbtu)

1,484

Restricted_Stock_Stock_Options1

Restricted Stock, Stock Options and Warrants (Tables) (2012 Stock Incentive Plan)	3 Months Ended
	Mar. 31, 2014
2012 Stock Incentive Plan	'
Vesting Activity Associated with Stock Incentives Plan	'
	The following table reflects the vesting activity associated with the 2012 Plan, as amended:


	Grant Date	Shares			Shares			Shares			Shares
	Grant Date	Awarded			Canceled			Vested			Unvested
	March 5, 2012 stock options		600,000			—			(200,000	)		400,000
	March 5, 2012 stock grants		831,500			(138,330	)		(425,560	)		267,610
	October 1, 2012 stock grants		225,000			—			(75,001	)		149,999
	December 3, 2012 stock grants		659,933			(4,900	)		(218,354	)		436,679
	February 20, 2013 stock grant		103,978			—			(34,660	)		69,318
	April 25, 2013 deferred stock units		346,818			—			(154,143	)		192,675
	December 10, 2013 stock grant		579,996			—			—			579,996
	December 12, 2013 stock grant		156,695			—			—			156,695
	March 7, 2014 stock grant		156,695			—			—			156,695
	March 7, 2014 stock grant		1,000,000			—			—			1,000,000

			4,660,615			(143,230	)		(1,107,718	)		3,409,667


Common Shares Available to be Awarded	'
	Common shares available to be awarded at March 31, 2014 are as follows:


	Total shares authorized		5,000,000
	Total shares issued		(4,660,615	)
	Total shares canceled		143,230

	Total shares available		482,615

Fair_Value_Measurements_Tables

Fair Value Measurements (Tables)	3 Months Ended
Fair Value Measurements (Tables)	Mar. 31, 2014
Summary of Valuation of Investments and Financial Instruments	'
	The following table summarizes the valuation of our investments and financial instruments by FASB ASC 820-10-05 pricing levels as of March 31, 2014:


		Fair Value Measurements
		at March 31, 2014 Using
		Level 1		Level 2			Level 3		Total
	Oil and gas derivative assets	$	—	$	—		$	—	$	—
	Oil and gas derivative liabilities		—		(200,113	)		—		(200,113	)

	Total	$	—	$	(200,113	)	$	—	$	(200,113	)

LongTerm_Debt_Detail

Long-Term Debt (Detail) (USD $)	Mar. 31, 2014	Dec. 31, 2013
Debt Instrument	'	'
Revolving credit loan	$34,000,000	$22,000,000
Total long-term debt	100,110,060	85,175,835
Less: current maturities	-2,141,419	-994,895
Long-term debt, net of current maturities	97,968,641	84,180,940
Insurance Notes	'	'
Debt Instrument	'	'
Notes payable	2,141,419	994,895
Floating Rate Senior Secured Notes Due 2016	'	'
Debt Instrument	'	'
Notes payable	$63,968,641	$62,180,940

Debt_Financing_Additional_Info

Debt Financing - Additional Information (Detail) (USD $)

3 Months Ended

1 Months Ended

3 Months Ended

1 Months Ended

3 Months Ended

12 Months Ended

3 Months Ended

9 Months Ended

1 Months Ended

Mar. 31, 2014

Dec. 31, 2012

Mar. 31, 2014

Dec. 31, 2013

Dec. 17, 2013

3-May-13

Dec. 31, 2011

Mar. 31, 2014

Sep. 30, 2012

Dec. 17, 2013

Dec. 31, 2012

1-May-12

Dec. 22, 2011

Dec. 31, 2011

Mar. 31, 2014

Dec. 31, 2013

Dec. 22, 2011

Dec. 31, 2011

Dec. 22, 2011

Mar. 31, 2014

Sep. 30, 2013

Dec. 17, 2013

3-May-13

Mar. 31, 2013

Dec. 31, 2012

Dec. 22, 2011

Dec. 31, 2011

Dec. 22, 2011

Mar. 31, 2014

Dec. 22, 2011

Floating Rate Senior Secured Notes Due 2016

New Credit Agreement

Financial Restructuring

Floating Rate Senior Secured Notes Due 2016

10.5% Senior Secured Notes Due 2012

Scenario 5

Scenario 6

New Credit Agreement

Minimum

Maximum

Common Stock

Preferred Stock

Proved Oil and Gas Reserves

Proved Developed and Producing Reserves

Loans

Letter of Credit

Floating Rate Senior Secured Notes Due 2016

Scenario 5

Scenario 6

10.5% Senior Secured Notes Due 2012

Minimum

Domestic

Debt Instrument

Credit facility, maturity date

22-Dec-15

Credit facility, maximum borrowing amount

$200,000,000

$10,000,000

Credit facility, initial borrowing base limit

63,000,000

Credit facility, current borrowing base

47,500,000

50,000,000

Credit facility, lien as percentage of assets

85.00%

90.00%

LIBOR margin

2.75%

2.25%

Available borrowing usage percentage

75.00%

50.00%

Domestic bank rate margin

1.75%

1.25%

Additional fronting fee

0.25%

Commitment fee as percentage of average daily amount of unborrowed funds

0.50%

Total Debt to EBITDAX

400.00%

500.00%

400.00%

500.00%

450.00%

400.00%

500.00%

Amendment fee paid

100,000

95,000

100,000

Consecutive days

'120 days

Credit facility, borrowed

12,000,000

Credit facility, borrowings

34,000,000

2,000,000

Credit facility, borrowings additional

3,000,000

Aggregate principal amount of notes exchanged

297,012,000

Percentage of notes outstanding exchanged

99.00%

Stock newly issued for the Restructuring

2,485,616

247,506

Common stock issued for conversion of preferred stock

35,021,098

Note newly issued for the Restructuring

49,500,000

Note maturity date

15-Dec-16

Variable rate, base rate

13.00%

Variable rate, margin rate, minimum

1.50%

Cash interest component, interest rate

3.00%

New Notes, increase in aggregate principal amount in lieu of making cash quarterly interest payment

14,464,649

Interest payment

1,787,701

6,751,077

Notes outstanding balance

$63,968,641

$62,180,940

$63,968,641

Oil_and_Gas_Commodity_Derivati2

Oil and Gas Commodity Derivatives - Additional Information (Detail) (USD $)	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Derivative Instruments, Gain (Loss)	'	'
Gain (loss) on derivative instruments	($249,984)	($817,590)
Unrealized gain (loss) on changes in derivative instruments	-207,657	-842,288
Realized gain (loss) on cash settlements of derivative instruments	($42,327)	$24,698

Hedge_Positions_Detail

Hedge Positions (Detail) (USD $)	3 Months Ended
	Mar. 31, 2014
	bbl
Crude Oil Contract	'
Derivative	'
Total Bbls	103,000
Crude Oil Contract \| Collar One	'
Derivative	'
Beginning Date	1-Apr-14
Ending Date	31-Dec-14
Floor	90
Ceiling	99
Total Bbls	103,000
Crude Oil Contract \| Year 2014	'
Derivative	'
Days	'275 days
Hedged Daily Production (bbl)	375
Total Bbls	103,000
Bbl/d	375
Crude Oil Contract \| Year 2014 \| Collar One	'
Derivative	'
Total Bbls	103,000
Bbl/d	375
Natural Gas Contract	'
Derivative	'
Total Mmbtu	408,000
Natural Gas Contract \| Collar One	'
Derivative	'
Beginning Date	1-Apr-14
Ending Date	31-Dec-14
Floor	3.75
Ceiling	5.01
Total Mmbtu	408,000
Natural Gas Contract \| Year 2014	'
Derivative	'
Days	'275 days
Hedged Daily Production (mmbtu)	1,484
Total Mmbtu	408,000
Mmbtu/d	1,484
Natural Gas Contract \| Year 2014 \| Collar One	'
Derivative	'
Total Mmbtu	408,000
Mmbtu/d	1,484

Restricted_Stock_Stock_Options2

Restricted Stock Stock Options and Warrants - Additional Information (Detail) (USD $)	3 Months Ended			1 Months Ended		1 Months Ended	3 Months Ended		1 Months Ended
	Mar. 31, 2014	Mar. 31, 2013	Mar. 31, 2014	Mar. 31, 2014	Dec. 31, 2012	Apr. 25, 2013	Mar. 31, 2014	Mar. 31, 2013	Mar. 31, 2014	Mar. 31, 2014
			2012 Stock Incentive Plan	Non Employee Director	Before Amendment	After Amendment	Restricted Stock	Restricted Stock	Restricted Stock	Restricted Stock
					2012 Stock Incentive Plan	2012 Stock Incentive Plan			2013 annual bonus for an officer of the Company	Officers
Share-based Compensation Arrangement by Share-based Payment Award	'	'	'	'	'	'	'	'	'	'
Total stock-based compensation expense	$663,445	$632,305	'	'	'	'	$663,445	$632,305	'	'
Increase in authorized shares	'	'	'	'	'	1,750,000	'	'	'	'
Shares authorized	'	'	5,000,000	'	3,250,000	5,000,000	'	'	'	'
Remaining stock options granted to non-employee directors	'	'	'	400,000	'	'	'	'	'	'
Percentage of options vested	'	'	'	33.30%	'	'	'	'	'	'
Stock options forfeited	'	'	'	400,000	'	'	'	'	'	'
Common stock issued to employees and officers	'	'	'	'	'	'	'	'	'	1,000,000
Award vesting period	'	'	'	'	'	'	'	'	'3 years	'3 years
Fair value of restricted stock grants	'	'	'	'	'	'	'	'	156,695	1,000,000
Unamortized value of awards	'	'	'	'	'	'	'	'	$152,342	$972,219
Awards granted	'	'	4,660,615	'	'	'	'	'	156,695	'
Awards granted as a percentage of annual bonus	'	'	'	'	'	'	'	'	33.00%	'

Vesting_Activity_Associated_wi

Vesting Activity Associated with Restricted Stock Awards (Detail) (2012 Stock Incentive Plan)	3 Months Ended
	Mar. 31, 2014
Share-based Compensation Arrangement by Share-based Payment Award	'
Shares Awarded	4,660,615
Shares Canceled	-143,230
Shares Vested	-1,107,718
Shares Unvested	3,409,667
March 05, 2012 \| Non Qualified Options	'
Share-based Compensation Arrangement by Share-based Payment Award	'
Grant Date	5-Mar-12
Shares Awarded	600,000
Shares Vested	-200,000
Shares Unvested	400,000
March 05, 2012 \| Restricted Stock	'
Share-based Compensation Arrangement by Share-based Payment Award	'
Grant Date	5-Mar-12
Shares Awarded	831,500
Shares Canceled	-138,330
Shares Vested	-425,560
Shares Unvested	267,610
October 01, 2012 \| Restricted Stock	'
Share-based Compensation Arrangement by Share-based Payment Award	'
Grant Date	1-Oct-12
Shares Awarded	225,000
Shares Vested	-75,001
Shares Unvested	149,999
December 03, 2012 \| Restricted Stock	'
Share-based Compensation Arrangement by Share-based Payment Award	'
Grant Date	3-Dec-12
Shares Awarded	659,933
Shares Canceled	-4,900
Shares Vested	-218,354
Shares Unvested	436,679
20-Feb-13	'
Share-based Compensation Arrangement by Share-based Payment Award	'
Grant Date	20-Feb-13
Shares Awarded	103,978
Shares Vested	-34,660
Shares Unvested	69,318
25-Apr-13	'
Share-based Compensation Arrangement by Share-based Payment Award	'
Grant Date	25-Apr-13
Shares Awarded	346,818
Shares Vested	-154,143
Shares Unvested	192,675
10-Dec-13	'
Share-based Compensation Arrangement by Share-based Payment Award	'
Grant Date	10-Dec-13
Shares Awarded	579,996
Shares Unvested	579,996
12-Dec-13	'
Share-based Compensation Arrangement by Share-based Payment Award	'
Grant Date	12-Dec-13
Shares Awarded	156,695
Shares Unvested	156,695
March 7, 2014 \| Restricted Stock	'
Share-based Compensation Arrangement by Share-based Payment Award	'
Grant Date	7-Mar-14
Shares Awarded	1,000,000
Shares Unvested	1,000,000
March 7, 2014 \| Performance Shares	'
Share-based Compensation Arrangement by Share-based Payment Award	'
Grant Date	7-Mar-14
Shares Awarded	156,695
Shares Unvested	156,695

Common_Shares_Available_for_Aw

Common Shares Available for Award (Detail) (2012 Stock Incentive Plan)	3 Months Ended
	Mar. 31, 2014
2012 Stock Incentive Plan	'
Share-based Compensation Arrangement by Share-based Payment Award	'
Total shares authorized	5,000,000
Total shares issued	-4,660,615
Total shares canceled	143,230
Total shares available	482,615

Summary_of_Valuation_of_Invest

Summary of Valuation of Investments and Financial Instruments (Detail) (USD $)	Mar. 31, 2014
Fair Value, Balance Sheet Grouping, Financial Statement Captions	'
Total	($200,113)
Oil and gas	'
Fair Value, Balance Sheet Grouping, Financial Statement Captions	'
Derivative assets	'
Derivative liabilities	-200,113
Level 1 \| Oil and gas	'
Fair Value, Balance Sheet Grouping, Financial Statement Captions	'
Derivative assets	'
Level 2	'
Fair Value, Balance Sheet Grouping, Financial Statement Captions	'
Total	-200,113
Level 2 \| Oil and gas	'
Fair Value, Balance Sheet Grouping, Financial Statement Captions	'
Derivative assets	'
Derivative liabilities	-200,113
Level 3 \| Oil and gas	'
Fair Value, Balance Sheet Grouping, Financial Statement Captions	'
Derivative assets	'

Remediation_Costs_Additional_I

Remediation Costs - Additional Information (Detail) (USD $)	3 Months Ended
Remediation Costs - Additional Information (Detail) (USD $)	Mar. 31, 2014	Sep. 30, 2013
Site Contingency [Line Items]	'	'
Remediation contingency liability, gross	'	$4,586,000
Remediation costs incurred	1,429,234	'
Recorded contingency liability, outstanding	3,156,766	'
Accrued liabilities	'	'
Site Contingency [Line Items]	'	'
Recorded contingency liability, outstanding	377,766	'
Other long-term liabilities	'	'
Site Contingency [Line Items]	'	'
Recorded contingency liability, outstanding	$2,779,000	'