SHARES in Dragon Oil plunged yesterday, after the company said its average production rate for the first half of the year would be well down on what had been expected.
The Turkmenistan-focused driller said gross production for the first half would come in at between 63,000 and 66,000 barrels of oil. While that is ahead of the same period last year, it is behind the 70,000 barrels a day produced during the first three months of the year. For the year, however, Dragon said average production would be back over the 70,000 level and maintained guidance for the period.
In a drilling update, the company said it had completed drilling of the Dzheitune (Lam) 28/169 well off Turkmenistan in the Caspian Sea. That well had tested to an initial production of 1,775 barrels a day.
Production, however, was hit at a number of other wells after sand entered them, forcing the company to slow production to correct this.
The surprise news from Dubai-based Dragon took markets aback and sent shares lower for the eighth day out of the last 10. During that time, Dragon has lost nearly 14pc of its value in Dublin.