- Dune Oil’s North Prospect has an independently evaluated 2C contingent resource of 27.6 million barrels net to the company.
- A planned 40-kilometre seismic program will help identify future drilling locations across its M47 block.
- The company is preparing for well re-entries that could support production and a potential conversion of contingent resources into reserves.
Dune Oil (CSE:DUNE) is advancing its exploration and development plans in southeastern Türkiye, where its M47 block sits within the emerging Gabar oil region.
In the latest episode of The Capital Compass, Ricki Lee speaks with Dune Oil President and CEO Scott Lower about the company’s recent progress, resource potential and upcoming drilling plans.
An independent evaluation has assigned the North Prospect a 2C contingent resource of 27.6 million barrels net to Dune, with an unrisked net present value discounted at 10 per cent (NPV10) exceeding US$733 million. These figures represent estimated resources and potential project value, rather than proven reserves or guaranteed returns.
This content has been prepared as part of a partnership with Dune Oil and is intended for informational purposes only.
Following a financing that raised approximately $3 million, Dune is preparing a 40-kilometre 2D seismic program to improve its understanding of the area’s complex geology and refine future drilling locations.
The program will cover the existing discovery area and the undrilled South Lead, where nearby exploration success has strengthened the company’s interest.
Lower says the next phase will also include re-entering two existing wells to refine drilling and completion techniques, with the aim of establishing production.
Over the next 12 months, investors can watch for seismic activity, the announcement of the re-entry program, potential production results and any subsequent resource reclassification.
Watch the full interview above to hear Lower discuss Dune Oil’s development strategy and the milestones ahead.
Transcript
This transcript has been lightly edited for clarity and readability.
Ricki: What happens when an oil explorer makes a discovery in a region that has gone from virtually no production to more than 80,000 barrels a day in just five years?
Hello, I’m Ricki Lee, and this is The Capital Compass. Today, we’re looking at Dune Oil, a Canadian oil exploration company focused on the Gabar region in southeastern Türkiye.
Its M47 block sits within one of the country’s most active emerging oil regions, around 11 kilometres from Türkiye’s largest onshore light oil discovery.
Dune already has a discovery of its own. The Çentikaya-1 well encountered 32.4-degree API light oil and 38 metres of oil pay, while an independent evaluation has assigned the North Prospect a 2C contingent resource of 27.6 million barrels net to Dune.
Following a busy summer, the company is now advancing seismic work designed to identify its next drilling locations and move the project further towards commercial development.
Joining me to discuss the progress so far and what comes next is Dune Oil President and CEO Scott Lower. Scott, welcome to The Capital Compass.
Scott: Hi, Ricki. Thanks very much for having us on the show today.
Ricki: Scott, tell us, Dune has had a pretty active few months. Before we get into the individual milestones, can you bring us up to speed on what you’ve accomplished over the summer and where the Gabar project stands today?
Scott: Over the summer, we’ve raised approximately $3 million. We’re now well positioned to get into the seismic project that should be kicking off any day now on the block.
We’re very excited about doing that because we’ll now be setting the stage for the next couple of re-entries and the next few wells to be drilled on the project block.
Ricki: The North Prospect has now been assigned a 2C contingent resource of 27.6 million barrels net to Dune, with an unrisked NPV10 of more than US$733 million.
What does that independent evaluation tell you about the potential scale and economics of the discovery, and what still needs to happen to move those contingent resources towards development?
Scott: It’s very close to being a full development play.
It’s been four years in the making, where civil works have been done, the discoveries have been made, the wells have been analysed, the formations and the drilling techniques have been analysed.
We’re very much at the cusp of a development program for the North Lead.
What needs to happen now is two re-entries on these existing wells, and then we’re going to fine-tune the drilling techniques and the completion techniques to get production going on this north block.
Ricki: A major part of that next phase is your planned 40-kilometre 2D seismic program, particularly because only around a quarter of the block currently has seismic coverage.
Where does that program stand today, and how could the new data change your understanding of Gabar and determine where you’ll drill next?
Scott: There’s been three different seismic programs on the block over the last 15 to 20 years. The most recent one was in 2023.
This new seismic program will be shooting the area around the two wells that resulted in a discovery. With that seismic, we’ll be able to fine-tune locations and future wells in that area.
The seismic is very useful when you’re dealing in an anticline, a hill, faulted fold-belt region where the geology is complex and the subsurface is complex.
The seismic really comes in handy in terms of reducing the risk to make sure you’ve got the best location.
The second aspect of the seismic is shooting on the South Lead location.
The South Lead location itself is a new, undrilled, unexplored region. There’s been a recent discovery just to the east of the block line, which is literally only 300 or 400 metres off the block line.
That has certainly de-risked that area in our books. We’re looking at drilling an exploration well there to have a potential second discovery on the block.
Ricki: You’ve also raised additional capital and strengthened the team as you prepare for this next phase.
How well funded are you for that upcoming work program, and where will you be prioritising that capital as you move from seismic into further drilling?
Scott: We’ve raised enough money to conduct the seismic program on the block, and that is the next milestone on the block.
From there, development in this area, a full development program, is really hundreds of millions of dollars for upwards of 50 or 60 wells.
The current milestone is getting the seismic and the re-entries done, and we’re well on our way to having that accomplished.
Ricki: You’ve got several potential catalysts now lining up over the next six to 12 months.
What are the milestones investors should be watching most closely? What would successful execution of this next phase mean for Dune Oil?
Scott: The kickoff of the seismic program is certainly going to be something that investors should be watching for.
The development and re-entry program, when that is announced, is another major catalyst.
Then, after that occurs, there’s going to be a conversion potentially from the 2C contingent resource into the reserve category, and there’ll be production rates on those wells.
All of those are near-term catalysts for the company over the next 12 months.
Ricki: Scott, thank you so much for joining us and bringing us up to speed on the progress at Dune Oil.
Scott: Ricki, thanks for having us today, and we hope to be back on your show again soon.
Ricki: For more information, you can visit www.duneoil.ca.
I’m Ricki Lee, and this has been The Capital Compass. Thank you very much for watching, and I’ll see you again next time.