LEGAL
How the oil resource figures on duneoil.ca are defined, who estimated them and the risks that apply to them, under National Instrument 51-101.
How the oil resource figures on duneoil.ca are defined, who estimated them and the risks that apply to them, under National Instrument 51-101.
Source and interest
The 2C contingent resource figures on this website are estimates by Chapman Hydrogen and Petroleum Engineering Ltd., an independent qualified reserves evaluator, effective December 31, 2025, prepared in accordance with NI 51-101 and the COGE Handbook. They are unrisked best-estimate (2C) contingent resources of light crude oil in the North Prospect of Block M47 (licences C3 and C4), Cudi-Gabar province, Southeast Türkiye, attributable to the 29% working interest that Dune Oil has the right to earn under a farm-in agreement, before royalties (24.2 MMbbl after royalties). There is uncertainty that it will be commercially viable to produce any portion of the resources.
Classification and chance of commerciality
They are classified as Economic Contingent Resources (positive NPV at forecast prices) with a project maturity sub-class of Development Unclarified, meaning no formal development plan has been approved and the contingencies below must be resolved before development can proceed. Chapman assigned an 81% chance of development and, because the accumulation is discovered, a 100% chance of discovery, for an 81% chance of commerciality.
What contingent resources are
Contingent resources are those quantities of petroleum estimated, as of a given date, to be potentially recoverable from known accumulations using established technology or technology under development, but which are not currently considered to be commercially recoverable due to one or more contingencies. There is uncertainty that it will be commercially viable to produce any portion of the resources.
Contingencies
The contingencies are: at least one more appraisal or development well (including the planned C-1 sidetrack) to confirm deliverability and commercial flow rates; completion of Dune Oil’s earn-in obligations under the farm-in agreement; approval of a formal development plan and production test program by the Joint Operating Committee; regulatory approvals from the General Directorate of Petroleum Affairs and other Turkish authorities; financing for development; and an oil sales or offtake agreement on commercially acceptable terms.
Positive and negative factors
Positive factors include 32.4° API light oil and 38 metres of net oil pay at C-1, an economic classification at Chapman’s forecast prices, and nearby producing analogue fields in the same Beloka and Mardin Group carbonate reservoirs. Negative factors include: C-1 was drilled on the structural flank and encountered only part of the interpreted oil column; no sustained production test has been conducted, so deliverability and commercial flow rates are not confirmed; the development concept is conceptual, with no pre-feasibility or feasibility study; the earn-in is not complete; and there is no approved development plan or development financing. There is uncertainty that it will be commercially viable to produce any portion of the resources.
Net present value
NPV10 attributable to the 29% working interest Dune Oil has the right to earn is US$733.5 million unrisked and US$594.2 million risked at the 81% chance of development, before income tax, discounted at 10%, using Chapman’s January 1, 2026 forecast prices. Estimated values of future net revenue do not represent fair market value. There is uncertainty that it will be commercially viable to produce any portion of the resources.
Terms used on this website
“2C” is the best estimate of contingent resources. “Unrisked” figures are not adjusted for the chance of development; “risked” figures are multiplied by it. “Gross” means Dune Oil’s working-interest share before deduction of royalties (company gross); “net” means that share after royalties. MMbbl means millions of barrels; NPV10 means net present value discounted at 10% per year.
Prospective resources
Chapman also estimated prospective resources for the Central and Fındık prospects; their estimates, chances of discovery and chances of commerciality are set out in the Company’s news release of April 16, 2026. Prospective resources are those quantities of petroleum estimated, as of a given date, to be potentially recoverable from undiscovered accumulations by the application of future development projects. There is no certainty that any portion of the resources will be discovered. If discovered, there is no certainty that it will be commercially viable to produce any portion of the resources.
Neighbouring fields
TPAO’s Gabar fields reached a record 83,300 barrels of oil per day (as reported on August 6, 2026, citing Türkiye’s Ministry of Energy and Natural Resources). Those fields are operated by TPAO, not Dune Oil, and their production and resources are not necessarily indicative of resources or production rates that may be achieved at Block M47.
Forward-looking information
This website contains forward-looking statements within the meaning of applicable securities laws, including statements about the seismic program, the re-entry and flow test of the Çetinkaya-1 well, the timing of first production and the company’s plans generally. They are based on current expectations and assumptions and are subject to known and unknown risks and uncertainties, including exploration and drilling risk, access to capital, partner and regulatory approvals and the geopolitical risks of operating in Türkiye, that could cause actual results to differ materially. Readers should not place undue reliance on them. The company does not undertake to update forward-looking statements except as required by law.