Business Irish

Saturday 21 October 2017

Dragon to hit production target

Thomas Molloy

Thomas Molloy

Turkmenistan-focused Dragon Oil said it is on track to produce 100,000 barrels of oil per day by 2015 in its quarterly management statement.

Gross production for the third quarter averaged 69,600 barrels, a 13pc rise on the same period last year, the firm reported yesterday.

Dragon now expects growth production to rise 10pc this year compared to last year. It also predicts a 10pc rise next year, less than some analysts were expecting.

"The change clearly reflects the lower base going into the year but also the ongoing challenge and logistical delays involved in building out a comprehensive investment and drilling programme in the Caspian," Davy Stockbrokers analyst Job Langbroek said.

"Nonetheless, the medium-term production target of 100,000 b/d has been re-confirmed and investment in platform and infrastructure continues to roll out."

Dragon Oil sold 2.8 million barrels of crude oil in the third quarter, which was 4pc more than the previous year.

Three wells went into production in the third quarter. That brought the number of wells so far this year to 14.

A $200m (€154m) share buyback scheme is almost 90pc complete, chief executive Abdul Jaleel Al Khalifa added.

Irish Independent

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