Dragon Oil: Producing 92,000 bopd in 1H
Dragon Oil plc, an international oil and gas exploration, development and production company, today publishes an update on the drilling activity and production numbers for 1H and June 2015 in the Cheleken Contract Area, Turkmenistan, and exploration activity in Block 9 in Iraq.
· Average gross production of approximately 92,060 barrels of oil per day (bopd) in 1H 2015;
· Average gross production of approximately 98,890 bopd in June 2015;
· Gross production rate of 100,658 bopd achieved on 9 June 2015;
· Guidance on gross production growth in 2015 updated to be around 15%.
Turkmenistan
Post completion of the Dzheitune (Lam) 22/194 well by Land Rig 1 in December 2014, an additional perforation was performed in late May followed by jet pump application in early June resulting in current production of 1,398 bopd.
Production has been added through additional perforations in certain existing wells as well as four jet pump installations in the area.
The Caspian Driller is expected to commence operations in 3Q 2015.
Iraq
In 2014, the partners in Block 9 in Iraq (Dragon Oil 30%) announced the discovery of oil in two formations in the consortium’s first exploration well, Faihaa-1. Open and cased hole tests were conducted in the Mishrif and Yamama formations with encouraging results. The well has been tested at 5,230 bopd on a 32”/64”choke from the Yamama reservoir. A production completion has been run in the well and the drilling rig has been released.
The consortium plans to drill two additional appraisal wells in 2H 2015 in order to fast track the development.
Production
The average gross field production in the Cheleken Contract Area for 1H 2015 was approximately 92,060 bopd (1H 2014: 73,440 bopd).
On 9 June 2015, the Dragon Oil Group produced above 100,000 bopd for the first time, at 100,658 bopd, thus reaching its previously announced production target for 2015. Production has since been at just under 100,000 bopd level resulting in the average gross production for June 2015 of 98,890 bopd (June 2014: 76,100 bopd). Dragon Oil anticipates that production will on average be around the 100,000 bopd level until the end of 2015.
On 15 June 2015, Dragon Oil updated its target for average production growth for 2015 to be around 15%. Dragon Oil confirms its previous guidance to achieve average daily gross production in 2016 of 100,000 bopd and to maintain this rate as a plateau for a minimum of five years from 2016.
