www.dragonoil.com
Dragon Oil is an independent international oil and gas exploration, development and production company. Our principal asset is the Cheleken Contract Area, in the eastern section of the Caspian Sea, offshore Turkmenistan. The Group’s headquarters are located in Dubai, United Arab Emirates. Dragon Oil had proved and probable oil reserves as at 31 December 2009 of 617 million barrels and 3.1 trillion cubic feet of gas resources.
Dragon Oil: Average production up 30 pct in 2011
Dragon Oil (LON:DGO) today confirmed that production increased by 30 per cent in 2011 to an average of 61,500 barrels of oil per day.
Furthermore production reached the firm’s 70,000 barrel a day target by mid-December and Dragon achieved an exit rate of 71,751 barrels a day. As a result Dragon generated over US$1 billion in revenues.
This expansion was the result of the thirteen new development wells that were successfully completed in the year, compared to the eleven wells that were initially planned.
"2011 was an impressive year in terms of production and reserves growth,” said chief executive Dr Abdul Jaleel Al Khalifa.
“We succeeded in increasing gross field production by almost a third from the 2010 level thanks to an intensive drilling programme and strong results from the Dzheitune (Lam) West area.
“Encouraging results from the Dzheitune (Lam) West area have been meeting and at times surpassing our expectations since we entered this previously undrilled area in 2007 and have led to a significant upgrade of our oil and condensate 2P reserves.
“This year, we were able to achieve a 183 per cent organic replacement of produced reserves, a remarkable achievement.”
Dragon today revealed that year-end oil and condensate reserves increased by 41 million barrels to 658 million barrels. While gas reserves and contingent gas resources were maintained at around 3 trillion cubic feet.
The company spent US$351 million on infrastructure and drilling, compared with US$460 million in the previous year. And the company’s cash balance increased to US$1.52 billion from US$1.16 billion in 2010.
"As a result of strong oil prices and production growth, we have generated over US$1 billion in revenues, the highest annual earnings ever,” Dr Abdul Jaleel Al Khalifa added.
“This further strengthens our financial position as we continue our growth towards the production target of 100,000 barrels of oil per day and actively pursue acquisition opportunities following the Tunisian farm-in of last year."
