Dune Oil advances seismic program and settles $3.68M debt

Dune Oil Corp. (CSE: DUNE) (OTCQB: DUNXF) has advanced US$200,000 to commence a seismic program on the M47 oil exploration block in southeastern Türkiye and has agreed to pay an additional US$4.1 million toward its farm-in work commitment on or before November 15, 2026, according to a company statement.

Under a revised farm-in agreement, no further payments will be due until November 15, 2027. The total seismic program budget is estimated at US$600,000 net to Dune, with nodal recording technology selected for data acquisition. The program is intended to identify additional drilling locations in the South Lead and North Lead areas of the M47 block ahead of a planned 2027 work program.

The company has also entered into a settlement agreement with TR1 Master Fund to retire US$3,681,350 in debt, with an expected net gain on settlement of US$2,977,125. The settlement is expected to be paid no later than November 30, 2026. The underlying loan dates to July 1, 2023.

Dune has upsized a non-brokered private placement to CAD$4,000,000, issuing up to 26,666,667 units at CAD$0.15 each. Each unit consists of one common share and half a share purchase warrant, with whole warrants exercisable at CAD$0.25 per share for one year from issuance. The placement is expected to close on or before October 20, 2026, subject to Canadian Securities Exchange approval.

The company also proposes to settle CAD$950,750 in debt owed to directors, officers, and consultants through the issuance of 6,338,333 common shares at CAD$0.15 each, subject to a four-month-and-one-day hold period.

Proceeds from the placement are designated for M47 exploration work, investor relations, and general corporate purposes. Dune holds a 29% earn-in working interest in the M47 block, located in the Cudi-Gabar petroleum province.

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