Dune Oil Announces New TPAO Oil Discoveries, Additional Drilling Programs on Neighbouring M47 Licenses, Including 22 Offset Wells Within 1 to 2 km and Advancement of Seismic Program

Dune advances seismic work as regional oil discoveries boost near-term exploration potential.

What the company is saying

Dune Oil Corp. (CSE:DUNE, OTCQB:DUNXF, FSE:Z621) is emphasizing the momentum in the Cudi-Gabar region, highlighting Turkish Petroleum's (TPAO) two new oil discoveries and a regional production increase target. The company frames its own progress as moving from contractor selection to field execution for a 2D seismic program on the M47 block, with a US$600,000 budget and US$200,000 already advanced. Dune underscores the proximity of TPAO's new Gaziler field—4 to 5 km from its M47 block—and the identification of 22 new well locations on neighboring licences. The announcement stresses the operational step of awarding the seismic contract, quoting CEO Scott Lower on its importance for the next exploration phase. Dune presents its 29% working interest in the M47 block as a strategic foothold, positioning the seismic program as a catalyst for future drilling. The tone is confident, leveraging third-party regional success to suggest upside for Dune's own assets.

What the data suggests

The announcement provides concrete operational milestones: Dune has awarded a seismic acquisition contract for its M47 Gabar licence area, covering 45 km across six 2D lines, with a program budget of approximately US$600,000 net and US$200,000 already advanced. Field mobilization is scheduled for November 2026, with completion expected by February 2027. Dune holds an agreement to earn a 29% working interest in the M47 block (C3 and C4 licences, 310 sq km). The regional context includes TPAO's report of 135 million barrels of oil-in-place potential in nearby discoveries, a plan to drill 40 new wells, and a targeted 30% increase in regional oil production to over 100,000 bbl/d by 2027. The facts show Dune is at the seismic data acquisition stage, with future value contingent on successful interpretation and subsequent drilling. No production, reserves, or direct economic impact for Dune is disclosed; all near-term catalysts depend on technical results from the seismic program.

Analysis

The announcement is generally positive in tone, highlighting both regional oil discoveries by Turkish Petroleum and Dune Oil Corp.'s progress in advancing its seismic program. The measurable progress is the awarding of the seismic contract and the advancement of US$200,000 toward a US$600,000 program, with fieldwork scheduled to begin imminently (November 2026). However, many of the key claims—such as the expectation to generate new drillable locations, finalize drilling plans, and benefit from regional production growth—are forward-looking and contingent on successful seismic interpretation and subsequent exploration. The capital outlay is significant for a junior explorer, and the benefits (potential drilling and production) are not immediate but expected within the next 6-18 months, placing them in the near-term category. The narrative leans on regional third-party success (TPAO's discoveries and production targets) to bolster sentiment, but these are not directly attributable to Dune's assets. The gap between narrative and evidence is moderate: while operational steps are real, the ultimate value creation remains unproven and is presented with optimistic framing.

Risk flags

• ●Execution risk is present as Dune must complete seismic acquisition in challenging terrain and deliver interpretable data before any drilling can proceed. Delays or technical issues could push back the 2027 drilling timeline.
• ●Financial risk is moderate, with US$600,000 committed to the seismic program and US$200,000 already advanced; further capital will be required for drilling and appraisal, and there is no guarantee of commercial discoveries.
• ●Dune's narrative leans heavily on third-party regional discoveries and production targets by TPAO, which, while encouraging, do not directly translate to Dune's own asset value or resource base. The company has not independently verified these third-party figures, and results on neighboring licences may not be replicated on M47.

Bottom line

Dune Oil Corp. is moving forward with a US$600,000 seismic program on its M47 block, with fieldwork set to start imminently and finish by February 2027. The company is leveraging regional momentum from TPAO's nearby oil discoveries and ambitious production targets to frame its own exploration upside, but no direct resource, reserve, or production figures are reported for Dune's licences. The operational milestone is real—contract awarded and funds advanced—but the investment case remains speculative until seismic results translate into concrete drill targets and successful wells. The most important takeaway is that Dune is entering an active exploration phase, but all future value depends on technical success and subsequent drilling, not on regional analogues alone. Investors should watch for seismic interpretation results and the announcement of specific drill locations as the next actionable catalysts.

Announcement summary

(CSE:DUNE) (OTCQB:DUNXF) (FSE:Z621) Dune Oil Corp. announced that Turkish Petroleum (TPAO) has made two new oil discoveries in the Cudi-Gabar region, specifically the Gaziler and Çardaklı fields, increasing TPAO's production fields in the region from eight to ten. The Gaziler field is located directly north of Dune's onshore M47 oil block, with its first well approximately 4 to 5 km from M47. TPAO reports approximately 135 million barrels of oil-in-place potential across the area under evaluation and plans to drill 40 new wells in the Gaziler and Çardaklı fields to bring that potential into production. TPAO is targeting an approximately 30% increase in Cudi-Gabar oil production, with total daily production in the region expected to exceed 100,000 bbl/d in 2027. During August 25-28, 2026, Enerji Günlüğü reported that six TPAO drilling-project groups identified 22 individual well locations in TPAO's Mehmet İrfan Güler oil field (MIG Oil Field) on the M47-C1/C2 exploration licences, situated 1-2 km north of Dune's M47-C3/C4 licences. The MIG Oil Field commenced production in 2024. Dune Oil Corp. has awarded the contract for its 2026 two-dimensional (2D) seismic data acquisition program on its M47 Gabar licence area in Şırnak Province, southeastern Türkiye, moving the program from contractor selection to field execution. The seismic program will cover approximately 45 kilometres across six 2D seismic lines over the M47 licence area (C3 and C4 licences, approximately 310 square kilometres). The program budget is estimated at approximately US$600,000 net to Dune, of which US$200,000 has been advanced to commence the program. Mobilization and field acquisition are planned to commence in November 2026, with completion expected in February 2027. Following acquisition, processing and interpretation of the new data are expected to generate additional drillable exploration locations in the South Lead area and development locations in the North Lead. Dune expects to finalize and announce new drilling locations in both areas following interpretation, in addition to the planned re-entry of the C-2 well and a sidetrack deviated or lateral of the C-1 well. Scott Lower, President and Chief Executive Officer of Dune Oil Corp., stated that awarding the seismic contract is an important step toward the next phase of exploration and development on the licence. Dune Oil Corp. has an agreement to earn a 29% working interest in the M47 oil exploration block (C3 and C4 licences) located in the Cudi-Gabar petroleum province of southeastern Türkiye.

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