Dune Oil's C-1 Well Hits Milestone, But Sustained Production Remains a Test

Dune Oil Corp., a Canadian energy company, has made significant progress in its North Field project in southeastern Türkiye. The company has recovered oil from the C-1 well through swabbing, but now targets cementing, perforation, and artificial lift to achieve sustained commercial production.

The C-1 well is crucial for establishing the operating basis for commercial development of the 27.6-million-barrel North Field resource. Dune Oil has a 29% working interest in the project and needs to demonstrate that it can produce oil sustainably from this well before committing to broader development.

According to Scott Lower, President & Chief Executive Officer of Dune Oil, the company is targeting an initial vertical production level of around 200 barrels per day from the 8-meter light-oil zone. This will be followed by a couple of months of operating data before considering lateral wells for further development.

The company's financial model estimates a $50-per-barrel netback at $72-per-barrel oil, but this has not yet been demonstrated through Block M47 production. Dune Oil needs to secure US$4.3 million in funding by September 2026 to fund its operational commitments and is also required to earn its 29% interest through work-program funding of approximately US$15 million.