Dubai-based oil exploration company Dragon has seen output 7% rise in the third quarter of the year – despite being hit by production delays.
Average daily gross production reached 74,300 barrels of oil per day (bopd) in the three months to September – a 7% rise on the same period last year, when daily gross production averaged 69,600 barrels a day.
The company, which operates in Asia and the Middle East, put two new wells on the Dzheitune (Lam) C platform in Turkmenistan into production during this period.
However, delays in mobilising new rigs means the company will only complete 10 wells in 2013. Two more are due to be spudded this year and completed in early 2014, with Dragon saying it expected production to grow by up to 10% as a result.
The company has also landed a three-year contract for the lease and management of Neptune and Mercury jack-up drilling rigs, while exploration and production sharing contracts for two blocks – Sanduqli and Mazar-i-Sharif in Afghanistan – have been agreed.
“As we are receiving the jack-up and land rigs later this year and in 2014, we are positive that with up to five drilling rigs secured and operational for most of 2014 and 2015, we have more confidence in achieving our target of reaching 100,000 bopd in 2015,” said CEO Dr Abdul Jaleel Al Khalifa.
Capital expenditure for the period was about US$80million, compared with US$91million in the same period last year. About one third was spent on infrastructure, 46% on development drilling and the remainder on exploration activities. The company anticipates its total expenditure on infrastructure, drilling and exploration activieis in 2013 to reach about US$435m.
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