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10 Oct 2014 07:00
10 October 2014
DRAGON OIL PLC
(the "Company" or together with its subsidiaries "Dragon Oil" or the "Group")
Drilling and Production Update
Dragon Oil plc (Ticker: DGO), an international oil and gas exploration, development and production company, today publishes a quarterly update on the drilling activity in the Cheleken Contract Area, Turkmenistan, and its exploration assets in the third quarter of 2014 and production numbers for 3Q 2014.
Turkmenistan
In 3Q 2014, Dragon Oil completed the following wells in the Dzheitune (Lam) and Dzhygalybeg (Zhdanov) fields in the Cheleken Contract Area:
Well | Rig | Completion date | Depth (metres) | Type | Completion | Initial test rate (bopd) |
Lam 22/188 | Land Rig 1 | July | 3,276 | Development | Single | No production |
Lam A/189 | Elima | July | 1,822 | Development | Single | 1,987 |
Lam A/190 | Elima | August | 1,904 | Development | Single | 1,704 |
Lam C/191 | Neptune | September | 2,440 | Development | Single | 1,510 |
Lam 28/192 | Elima | September | 2,283 | Development | Single | 2,632 |
Lam 28/193 | Elima | September | 2,220 | Development | Single | 1,961 |
The development well Dzheitune (Lam) 22/188 was drilled to a depth of 3,276 metres but due to equipment failure has been temporarily suspended and is scheduled for sidetracking later this year.
The current status of the drilling rigs in the Cheleken Contract Area is as follows:
· | Land Rig 1 is currently drilling the Dzheitune (Lam) 22/194 well; |
· | The Elima jack-up rig is drilling the Dzheitune (Lam) 28/196 well; |
· | The Neptune rig is drilling the Dzheitune (Lam) C/195 well; |
· | Land Rig 2 is drilling the Dzhygalybeg (Zhdanov) A/102 well; |
· | The Caspian Driller is in Turkmenistan waters awaiting further clearances and commissioning before the start of operations. |
Iraq
On 10 September 2014, the consortium comprised of Kuwait Energy (70% and operator) and Dragon Oil (30%) reported its first oil discovery at Block 9, Iraq. The successful discovery was at the consortium's first target, the Mishrif formation at 2,700 metres, in its Block 9 exploration well, Faihaa-1. Preliminary tests of the Faihaa-1 Mishrif formation resulted in a flow rate of circa 2,000 bopd of 20 API oil on 32/64" choke. The consortium will conduct more detailed testing on Mishrif towards the end of the year. The consortium's strategy is to continue drilling activities, exploring deeper horizons and collecting further data, to evaluate the discovery and to define an appraisal plan.
Production
The average Cheleken Contract Area gross production for 3Q 2014 was 80,510 bopd (3Q 2013: 74,300 bopd). The average production for September 2014 was 82,540 bopd (September 2013: 74,000 bopd).
We re-iterate our expectation for the average gross production growth from the Cheleken Contract Area to be in the range of 5% to 10% in 2014 on the back of a drilling programme of between 14 and 16 wells in total; we expect to exit 2014 at 87,000-90,000 bopd.
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For further information please contact:
Investor and analyst enquiries
Dragon Oil plc (+44 (0)20 7647 7804)
Anna Gavrilova
Media enquiries
Citigate Dewe Rogerson (+44 (0)20 7638 9571)
Martin Jackson
About Dragon Oil
Dragon Oil plc is an international oil and gas exploration, development and production company, quoted on the London and Irish Stock exchanges (Ticker symbol: DGO). Its principal producing asset is in the Cheleken Contract Area, in the eastern section of the Caspian Sea, offshore Turkmenistan.
Dragon Oil (Turkmenistan) Ltd., a wholly owned subsidiary of Dragon Oil plc, holds 100% interest in, and is the operator of, the Production Sharing Agreement for the Cheleken Contract Area. The operational focus is on the re-development of two oil and gas producing fields, Dzheitune (Lam) and Dzhygalybeg (Zhdanov).
The Group has exploration blocks in Tunisia, Iraq, Afghanistan, Egypt and the Philippines. Dragon Oil's diversification strategy is to add exploration and production assets within Africa, parts of Asia and the Middle East in order to create a diversified and balanced portfolio of assets for the Group.
www.dragonoil.com
Disclaimer
This news release may contain forward-looking statements concerning the financial condition and results of operations of Dragon Oil. Forward-looking statements are statements of future expectations that are based on management's current expectations and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in these statements. No assurances can be given as to future results, levels of activity and achievements and actual results, levels of activity and achievements may differ materially from those expressed or implied by any forward-looking statements contained in this report. Dragon Oil does not undertake any obligation to update publicly or revise any forward-looking statement as a result of new information, future events or other information.
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