Strong new wells a 'surprise' for Dragon Oil
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 barrels of oil per day (BOPD) 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 Dubai-based firm is registered in Ireland and has a listing in Dublin and London.
It has assets in Turkmenistan, Iraq, Afghanistan and Tunisia -- but only one of its fields in Turkmenistan is producing oil. The rest are in 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 9pc and 10pc, from 10pc to 15pc, but said it was on track to grow production 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, which is due to issue a trading update on Tuesday, had fallen marginally by early afternoon yesterday, down 0.04pc to €6.91.