Dragon Oil surges as Turkmenistan fields flow
Dragon Oil shares jumped after the Dublin-listed company reported a higher first-quarter production rate from its Turkmenistan fields, helped by new facilities and wells coming on stream.
Shares rose as much 4.8pc in Dublin yesterday after the explorer said it expected to achieve production growth of up to 20pc this year.
The company, which expects to maintain its medium-term target of 10-15pc growth in production from 2011-2013, plans to spend about $250m (€171m) on capital expenditure in 2011, as it mounts on an extensive drilling programme.
In January, the company's CEO said that it was confident of achieving production growth of 10-15pc this year and could push output even higher.
Dragon Oil, which plans to complete drilling 11 new wells this year, spent about $74m during the quarter, compared with a capex of $67m last year.
January-March average daily oil production was 57,800 barrels of oil per day in the first quarter, compared with 47,600 bopd a year ago, as the Turkmenistan-focused explorer resolved certain infrastructure bottlenecks.
Dragon Oil, which has brought three wells on stream for production this year, also named Hussain Al Ansari as its Chief Operating Officer.
Dubai-based Dragon Oil's shares have gained about 18pc in value over the past year -- giving it a market value of €3.32bn and making it the seventh-largest company on the ISE.