10th Oct 2014 08:04
LONDON (Alliance News) - Dragon Oil PLC Friday said production has increased from its Cheleken contract area in Turkmenistan following its ongoing drilling programme, with further growth expected before the end of 2014.
Production increased from Cheleken in the third quarter, reaching 80,510 barrels of oil per day from 74,300 barrels of oil per day a year earlier. The average production for September was 82,540 barrels of oil per day, up from 74,000 barrels of oil per day in September 2013.
"We re-iterate our expectation for the average gross production growth from the Cheleken contract area to be in the range of 5% to 10% in 2014 on the back of a drilling programme of between 14 and 16 wells in total; we expect to exit 2014 at 87,000-90,000 barrels of oil per day," said Dragon in a statement.
Dragon completed five wells in the Cheleken contract area during the third quarter, producing a combined initial test rate of 9,974 barrels of oil per day. A sixth well, Lam22/188, is not producing but was drilled to a depth of 3,276 metres. It has been suspended until next year due to equipment failure, said Dragon.
Dragon shares were trading flat at 543.00 pence per share Friday morning.
By Joshua Warner; [email protected]; @JoshAlliance
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