Dredge mixed nine birdies with one bogey during the round, putting himself in good position for a shot at his second career European Tour title. The 32-year-old Welshman, who won the 2003 Madeira Island Open, was coming off a fifth-place finish at the Deutsche Bank Players' Championship.
'Last week was a good chance to win and it was disappointing,' said Dredge. 'But I took the positives out of it and tried to learn from my mistakes, mainly my putting routine.'
Fulke also shot a 63 Friday to share second place with Lane, who followed his 64 in the first round with a 5-under-par 66.
'It's difficult going out knowing that 13 under led the tournament, but you do your best,' said Lane. 'I set a target of 22 under par for the week and I reckon that would be alright.'
Henrik Nystrom and Jean-Francois Remesy share fourth place at 11-under-par 131, while Henrik Bjornstad and first-round leader Marc Cayeux are one stroke further back 10 under. Cayeux followed his 63 Thursday with a second-round 69.
Dredge began his round on the back-nine and found his stroke right away with birdies at 11, 12 and 14. Another birdie on No. 18 put the Welshman at 9 under par around the turn.
Three more birdies over the next six holes moved Dredge to 12 under. He dropped a stroke with a bogey at the par-4 seventh, but made up for it and then some with birdies on his final two holes to reach minus-13.
Fulke completed a bogey-free round for his 63, picking up eight birdies on the day to give him 13 for the tournament. He has bogeyed just one hole.
Mark Hensby and Henrik Stenson are tied for eighth place at 9-under-par 133, while six players stand one stroke further back at 8 under.
Last year's champion, Luke Donald, is not on hand to defend his crown, but 2003 winner Adam Scott is tied with a group at 7-under-par 135. Jesper Parnevik, one of just two two-time winners at this event, is two strokes further back.
The 36-hole cut fell at 4-under-par 138 and last week's Deutsche Bank Players' Championship winner, Niclas Fasth missed the cut. He shot rounds of 69-70 to finish at 3-under-par 139.