Dune Oil Closes CAD$422,500 in Placement Tranches Ahead of US$4.3 Million M47 Commitment

• Dune Oil announced on September 15, 2026, that it closed CAD$422,500 in private placement tranches at $0.15 per unit and moved its OTCQB market symbol to DUNXF.
• Dune needs to raise US$4.3 million in September to fund its first-tranche obligations on Block M47 in Türkiye.
• Dune is earning up to a 29% working interest in Block M47 by funding US$15 million of work across 2026 and 2027, with US$800,000 paid to date.
• Dune's September 2026 presentation lists 1 to 2 new wells, 1 re-entry into C-1 and C-2 at the North discovery, and a 40-kilometer seismic program in the first tranche.
• The company estimates a US$50-per-barrel operating netback at a US$72-per-barrel Brent oil price.

Dune Oil's First-Tranche Funding on Block M47

Dune Oil Corp. (CSE: DUNE | OTCQB: DUNXF | FSE: Z62) announced on September 15, 2026, that it closed additional tranches of its non-brokered private placement for gross proceeds of CAD$422,500. The financing was announced in the same month that management identified a US$4.3 million raise to cover Dune's Block M47 work program in southeastern Türkiye, the first of 2 funding tranches through which Dune is earning its working interest first tranche of shares. The company's catalyst schedule lists the tranche 1 capital raise as underway ahead of fall 2026 C-1 testing.

Placement Terms & Use of Proceeds

The tranches comprised 2,816,667 units at $0.15 each. Dune also settled CAD$20,000 of outstanding debt with an arm's-length party by issuing 133,333 units. Each unit consists of 1 common share and one-half of 1 share purchase warrant, with each whole warrant exercisable at CAD$0.25 for 1 year from issuance.

The securities carry hold periods expiring December 26, 2026, and January 15, 2027. The offering remains subject to approval by the Canadian Securities Exchange (CSE). Dune stated proceeds will fund its ongoing M47 work program, investor relations activities, expenses, and general working capital and corporate purposes, without assigning an amount to each.

Dune's shares began trading on the OTCQB market under DUNXF on September 14, 2026. The CSE and Frankfurt symbols are unchanged. The change requires no action from shareholders and does not affect its name, business, or corporate structure.

First-Tranche Commitments Under the M47 Earn-In

Dune is earning up to a 29% working interest in M47 by funding US$15 million of 2026 and 2027 work commitments. M47 comprises the C3 and C4 licenses in the Cudi-Gabar petroleum province. Dune states that US$800,000 has been paid to date, with the commitment payable in 2 tranches. Block holder Derkim retains 51%, and GYP, a farm-in partner and local driller, has a 20% interest.

President and Chief Executive Officer Scott Lower said that the US$4.3 million covers Dune's 40% share of one well, 80% of the seismic program and subsequent wells, with its partner paying the balance. The company lists the first-tranche program as 1 to 2 new wells, 1 re-entry into C-1 and C-2 at the North discovery, an early production facility, and a 40-kilometer staged seismic program. It puts Dune's contribution at US$4.3 million and GYP's at US$2.5 million.

Lower said the September date carries flexibility because every partner depends on the program being funded: 

"We're confident we're going to get the money in September. Nobody's going to say 'if you're a week late the deal's off' because everybody needs the money to make the program go."

What the Work Program Covers on the Ground

The C-1 well is already drilled. Lower said the re-entry involves cementing and perforating the pay zone, then installing a pump for production testing. He said producing wells in the local area all use pumps to bring oil to the surface because the reservoir is very low pressure. The presentation schedules C-1 production testing for fall 2026 and Mid- or South-Lead drilling for late 2026. The company targets a September 2026 start for seismic over the Mid-1 and South-1 leads. Lines are also planned near the Yatağankaya well, which TPAO completed in June 2026 on the adjacent M48 block, about 500 meters from the block line. The company said that gravity data and surface anticlines indicate that most of that structure lies on M47. 

Lower said the absence of a state partner and the onshore setting separate M47 from the Black Sea gas project Dune exited earlier in 2026: 

"They're not involved in this project. They're not involved, and that was an important feature. This is onshore as well, and onshore is so much easier to operate than offshore."

Lower put onshore well costs at $2 million to drill and $3 million to complete and bring online, compared with $16 million offshore. GYP's 20-rig fleet reduces Dune's rig costs by about 40%.

Funding Timing & the M47 Earn-In

Dune's 29% is earned through funding, and the company states that costs are shared pro-rata to interest once the earn-in is complete.

Operatorship follows the same sequence. Dune will take over operations once it completes its funding obligations, targeting a structure in which GYP drills vertical sections, and Dune executes pay-zone completions and lateral drilling. Under standard joint operating agreement terms, a partner that fails to fund its share of a future well forfeits participation in that well's profits and risk-reward.

The September raise is likely to take the form of equity: 

"It's more likely to be an equity raise as part of the recapitalization of the company to get us into production, convert contingent resources to reserves, and make another discovery on the south lead."

The company schedules a second capital raise for tranche 2 in early 2027. That tranche includes a minimum of 3 new wells and additional seismic, with Dune's share listed at US$8 million. Dune is targeting 600 to 1,000 barrels of oil equivalent per day net to the company by the end of the work program.

Netback Economics & Next Milestones

Dune estimates a US$ 50-per-barrel operating netback at a US$ 72-per-barrel Brent oil price. That figure is after a US$9 royalty at 12.5%, US$8 operating costs, and US$5 trucking. On the same company estimates, the netback falls to US$44 at US$65 Brent and rises to US$61 at US$85 Brent. Lower said the netback comes out to roughly $50 per barrel before taxes and depreciation, and the company cites a 25% corporate tax rate.

Initial production is planned to be trucked 130 kilometers to the Tüpraş Batman refinery. The presentation cites a pipeline completed in 2026 with more than 150,000 boe/d of capacity into the Esma Çevik field as later capacity. M47 sits on a trend of 7 neighboring TPAO fields and discoveries, with more than 80,000 barrels of oil equivalent per day in neighboring production, based on TPAO disclosures and company estimates as of January 2026.

The sequence runs from the tranche 1 capital raise, listed as underway, to C-1 production testing in fall 2026. Mid or South Lead drilling follows in late 2026, and the tranche 2 raise in early 2027.

Key Takeaway for Investors

Dune Oil's position in Block M47 is being earned rather than held. Its working interest of up to 29% depends on funding US$15 million of work across 2026 and 2027, of which US$800,000 had been paid as of September 2026. The CAD$422,500 raised in tranches announced on September 15, 2026, is allocated to the work program alongside general corporate purposes. Management has identified a US$4.3 million first tranche requirement for September, and the company plans a second raise in early 2027. The company lists the tranche 1 capital raise as underway ahead of fall 2026 C-1 testing and the September 2026 seismic start.

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