Tuesday 16 January 2018

Irish-listed Dragon Oil hits 100,000 barrels per day

Dragon Oil tankers loading
Dragon Oil tankers loading

Paul O’Donoghue

Irish-listed oil explorer Dragon Oil saw its production increase to over 100,000 barrels of oil per day (bopd) at one point in June, the company has announced.

In a trading statement published yesterday the firm said that its average gross oil production rate rose by 25pc from 73,440 bopd to 92,060 bopd over the six-month period to the end of June.

In June, the production rate averaged 98,890 bopd compared to 76,100 bopd, but on June 9 the company broke through its target, producing 100,658 barrels of oil.

Dragon Oil chief executive Abdul Al Khalifa said: “At the beginning of June 2015 we achieved a production level of 100,658 barrels of oil per day.

“It is a milestone for Dragon Oil and a testament to the hard work and dedication of our talented people.”

He added: “We are aiming to maintain the average daily gross production at around 100,000 barrels of oil per day for the remainder of the year and sustaining this plateau thereafter for a minimum of five years.”

Sales almost doubled compared to the year before, with 10.2m barrels sold in 2014 compared to 5.2m in 2013.

However, as expected, the fall in oil prices worldwide significantly hit sales margins.

Dragon only managed to take in $44 per barrel compared to $92 the year beforehand.

Capital expenditure on infrastructure, drilling and exploration assets came to $313m and the group’s cash balance at the end of the period stood at $1.85bn.

Dragon is currently in the middle of a shareholder standoff over whether to accept a £3.7bn takeover offer from Emirates National Oil Company (ENOC).

The largest minority shareholder, Baillie Gifford, has said it would not accept the offer as it materially undervalued the company. So far only GLG Partners, a part of Man Group, and LGM Investments, a unit of Bank of Montreal, have publicly supported the ENOC offer. However, the two represent less than 2pc of shareholders.

Shares in Dragon Oil closed up 35pc at €10.255 each in Dublin yesterday.

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