Dragon Oil up 3.4pc as new wells primed for use
Published 30/10/2010 | 05:00
Shares in Dragon Oil were boosted yesterday by news that the Irish-listed exploration company had successfully completed and tested two new oil wells.
The shares closed up 3.4pc at €5.15 each on the back of the news.
The company said that the wells were expected to go into production before the end of the year.
Drilling has already begun on another well in the area using the same equipment.
Dragon Oil is listed on the Dublin and London stock exchanges. The company is mostly focused on off-shore drilling off the coast of Turkmenistan in the Caspian Sea.
The news comes just over a week after shares in the company had taken a battering on fears that the company was struggling to cope with capacity.
On October 20, Dragon Oil said production would be lower than previously forecast due to technical problems with a pipeline. On the day shares fell 4.7pc to €5.05.
The company had warned that the building of a new a pipeline and upgrade if onshore processing facilities would hurt production.
Meanwhile, Limerick-based Circle Oil said that it had confirmed a further gas discovery at one of its wells in Morocco.
Circle said it had successfully tested the CGD-11 exploration well in the Rharb Basin, northeast of Rabat.
The discovery is in both the main Guebbas target and the secondary Hoot zone, the company said. A technical evaluation of the well results is under way.
Circle chief executive Professor Chris Green said: "I am pleased to report that we have continued our drilling success in the Rharb Basin and this well has tested with good sustained flow rates at both target levels. The well will now be completed and made ready for production."