Two new wells put Dragon on course to hit targets
Published 21/07/2010 | 05:00
DRAGON Oil has drilled two more development wells off Turkmenistan, prompting analysts to predict the Dublin-listed company will meet drilling targets this year.
The two wells had initial flow rates of 1,809 and 2,311 barrels of oil per day, Dragon said.
"Dragon remains on track to complete 11 wells in 2010," Davy Stockbroker's Caren Crowley wrote in a note to investors yesterday.
"However, initial flow rates from wells drilled year-to-date have been disappointing and will make management's original guidance of 15pc production growth in 2010 difficult to achieve."
Dragon is due to issue a trading update tomorrow, which will give shareholders a better idea of how the company is performing. Shares in the oil company have gained 17.3pc this year, helping to push its market capitalisation to more than €2.6bn.
The trading update "needs to reassure on production growth in order for the stock to rise to Davy's target price", Ms Crowley added.