DRAGON OIL29 Oct 2010 22:56
Friday, October 29, 2010
Dragon Oil Reports Solid Results From Latest Wells
Dragon Oil (LON:DGO) has successfully completed two more development wells on the Dzheitune (Lam) oilfield, with initial tests providing solid flow results.
The Dzheitune (Lam) B/148 and 28/149 wells tested at 2,639 barrels of oil per day (bopd) and 4,379 bopd respectively.
Dragon Oil’s Cheleken PSA (Production Sharing Agreement) covers two offshore oil and gas fields in the Caspian Sea, offshore Turkmenistan - Dzheitune (Lam) and Dzhygalybeg (Zhdanov).
The company’s primary operational focus is on the re-development of these two producing fields, which were discovered during the Soviet era in Turkmenistan. Overall the 2010 program is targeting production growth of up to 10%, increasing to 10-15% between 2010 and 2012.
“The solid results from both wells ... should provide a firm foundation for driving production growth,” chief executive Dr Abdul Jaleel Al Khalifa said.
Dragon is currently drilling the Dzheitune (Lam) B/150 and 28/151 wells.
“The last two wells of the 11 wells planned for 2010 are being drilled now and we expect to complete them before the end of the year."
Dzheitune (Lam) B/148 was drilled to 3,858 metres and it was completed with dual strings and testing of the short and long strings gave production rates of 1,556 bopd and 1,083 bopd respectively.
The Dzheitune (Lam) 28/149 well was drilled to 3,295 metres and it also has dual strings. The short string tested at 1,866 bopd and the long string tested at 2,513 bopd.
Production is expected to come online from both wells before the end of 2010. Subsequently they will contribute towards Dragon’s production growth in 2011.