14th Oct 2014 09:21
LONDON (Alliance News) - Dragon Oil PLC Tuesday said average daily gross production increased in the third quarter, as it brought new additional wells into production, and said it is still in talks with Petroceltic International PLC regarding a possible takeover.
Earlier this month, the oil and gas explorer made a 230 pence per share offer for Petroceltic, valuing the Dublin-based oil and gas explorer at around GBP491.6 million.
"The board of Dragon Oil is in detailed discussions regarding a possible offer to be made by Dragon Oil for the issued, and to be issued, share capital of Petroceltic. Any further announcements will be made as appropriate," said Chief Executive Officer Abdul Jaleel Al Khalifa in a statement Tuesday.
Dragon Oil said average daily gross production in the Cheleken Contract Area in Turkmenistan reached 80,510 barrels of oil per day in the three months to September 30, 8.4% higher year-on-year and up 9.6% when compared to the production level achieved in the first half of the year.
It said it brought six new wells into production in the quarter. Average production for September was 82,540 barrels of oil per day, it said.
The company said its sold 3.6 million barrels of crude oil in the third quarter, up 13% year-on-year due to increased production.
Dragon Oil said capital expenditure on infrastructure, drilling and exploration assets came in at around USD171 million in the quarter.
During the quarter, the company was awarded two exploration blocks in Algeria in partnership with Italian power company Enel SpA.
Dragon Oil shares were down 2.2% at 526.00 pence Tuesday mid-morning. Petroceltic shares were off 0.1% at 208.75p.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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