Wednesday 18 October 2017

Strong production figures for Dragon Oil from new wells

Dragon Oil
Dragon Oil
Sarah McCabe

Sarah McCabe

Dragon Oil has revealed strong production figures from two new development wells.

The mining company said two wells drilled at a site known as the LAM C platform in Turkmenistan were brought into production at rates of 3,727 bopd (barrels of oil per day) and 2,933 bopd respectively.

“Not since 2012 have we seen initial production rates from development wells at or above 3,000 bopd” said Davy Stockbrokers. “Results from the latest development wells demonstrate that initial production rates can still surprise to the upside.”

The oil miner is headquartered in Dubai and controlled by the government of Dubai, but registered in Ireland and has a dual listing in Dublin and London.

It has assets in Turkmenistan, Iraq, Afghanistan and Tunisia – but only one of its fields in Turkeminstan is currently producing oil, located beneath the Caspian Sea. The rest are still at earlier stages of development.

The company said it exited the year producing just shy of 75,000 bopd, a growth rate of 9pc on the year before.

In October it downgraded its 2013 outlook to between 9 and 10pc, from a previous guidance at the lower end of 10pc to 15pc.

It blamed this on having drilled fewer wells than expected, but said it remained on track to grow production between 10pc to 15pc in 2014 and 2015.

By February Dragon will have four rigs operating off the coast of Turkmenistan, two more than in 2013. A fifth is due to arrive before the end of the year.

Shares in the company had fallen marginally by early afternoon yesterday, down 0.04pc to €6.91.

The company is due to issue a trading update on January 14.

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