LONDON (Alliance News) - Dragon Oil PLC Tuesday said its field production increased in the first quarter, but warned that its forecast 2014 production will be at the lower end of its guidance because of delays to drilling.
The oil and gas exploration and development company which operates in Turkmenistan said average field production at its Cheleken Contract Area was 72,300 barrels of oil per day for the three months ended March 31, up from 71,800 barrels in the same period the previous year.
However, the company said production at Cheleken fell to 73,400 barrels of oil per day in March compared with 74,000 barrels per day in March 2013, with the quarter's exit rate just above 73,000 barrels per day.
Dragon Oil said that due to an expected late start to drilling by rigs on site or scheduled to arrive, it now anticipates that production will grow 10% in 2014 as a whole, at the lower end of its forecasts. This new forecast is on the basis of 14 to 16 wells being completed during the year.
The company in February had already warned that annual production growth would be at the lower end of its 10% to 15% growth expectations, so the new forecast marks a further revision.It had also said in February it expects to produce 100,000 barrels of oil per day in 2015, and to maintain that level from 2016 for at least five years.
Dragon Oil said on Tuesday that its drilling programme at Cheleken is now expected to be weighed more towards the second half of the year.
In Iraq, a new test well started drilling on March 25, with testing expected to take place in the second half, Dragon Oil said.
The company said that its Dzheitune B/155A sidetrack was completed to a depth of 2,447 metres in February and is currently producing 1,175 barrels of oil per day, while its Dzhygalybeg 21/101 development well went into test production in March.
Dragon Oil shares were down 0.4% to 568.00 pence Tuesday.
By Tom McIvor; tommcivor@alliancenews.com; @TomMcIvor1
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