10th Sep 2014 08:40
LONDON (Alliance News) - Oil and gas company Dragon Oil PLC Wednesday said its operating partner on the Block 9, Iraq field, Kuwait Energy, has reported the first discovery from the Faihaa-1 well at the site.
Dragon, which holds a 30% stake in the field alongside Kuwait Energy's 70%, said the discovery had been made at its first target, the Mishrif formation, at 2,700 metres. The field is located in Northern Basra, Iraq.
Dragon and Kuwait Energy are due to conduct more detailed testing on the Mishrif formation later in the year.
"We are pleased to report along with our operating partner Kuwait Energy an oil discovery in the first target, the Mishrif formation, in Block 9, Iraq. This represents the first significant success in Dragon Oil's exploration portfolio," said Dragon Chief Executive Abdul Jaleel Khalifa.
"Drilling continues towards the second target, which will be tested later this year, and we look forward to a full evaluation of the discovery and the drawing up of a block appraisal plan by the consortium," Khalifa added.
Dragon Oil shares were up 0.7% to 598 pence on Wednesday.
By Sam Unsted; [email protected]; @SamUAtAlliance
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