LONDON (Alliance News) - Dragon Oil PLC Wednesday lowered its forecast production growth for its Cheleken project in Turkmenistan to a range of 5% and 10% based on a drilling programme of between 14 and 16 wells during the year.
Previously the company had forecast growth of 10% for the project. It expects an exit rate of 87,000 to 90,000 barrels of oil per day in 2014, and maintained its guidance of an exit rate of 100,000 barrels of oil per day in 2015.
The company said that during the second quarter of the year it had completed two sidetracks and is currently completing two development wells. The sidetrack drilled from the Dzheitune (Lam) 4 platform encountered water, and Dragon Oil said it will be side-tracked in the future.
It expects recoverable reserves in the area to be downgraded, although it expects this to be offset by the addition of reserves from drilling results it is seeing in the A-Sands, jet pump application and water injection pilot project.
Shares in Dragon Oil were trading up 0.3% at 605.50 pence Wednesday afternoon.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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