Dragon Oil Reports Solid Production Performance (UAE)

Dragon Oil plc, an international oil and gas exploration, production and development company, today issues an operational update and financial highlights for the six months’ period ended 30 June 2013. 

Key operational highlights are:

– 15% increase in average daily production rate at approximately 73,600 barrels of oil per day (“bopd”) in 1H 2013 compared to 64,200 bopd in 1H 2012;

– Six wells, including one sidetrack, completed from 1 January 2013 to-date.

Key financial highlights:

– Capital expenditure on infrastructure and drilling amounted to US$149 million for 1H 2013 (1H 2012: US$208 million);

– Group’s cash balance (net of abandonment and decommissioning funds) as at 30 June 2013 was US$1,651 million (31 December 2012: US$1,737 million).

Dr Abdul Jaleel Al Khalifa, CEO, commented:

“I am pleased to report solid production performance in the first half of this year. With six wells completed, including one sidetrack, and stable performance from the existing wells, we have achieved a 15% growth in average gross field production compared with the corresponding period last year. We re-iterate our 2013 production growth target at the lower end of the medium-term guidance of 10-15%.

“We are pleased to advise that we have signed an MOU with BKE Shelf for the use of jack-up drilling capacity for a total period of three years starting from 3Q 2013. The currently employed platform-based and jack-up rigs will continue to drill throughout the year and we endeavour to put more rigs on stream when they arrive in the Cheleken Contract Area. The Caspian Driller has been moved to a ship yard in Kazakhstan where it is scheduled to undergo final completion and preparation for commissioning with expected arrival towards the end of the year. One of the contracted platform-based rigs will commence drilling in 4Q 2013 in the Dzhygalybeg (Zhdanov) A platform area; while the other rig is expected to be delivered in 1Q 2014.

“Drilling is ongoing in the Bargou Exploration permit and we are close to reaching the target depth at which point an evaluation and a decision to conduct a production test will be made. The aim of this complex well is to test the flow potential of the reservoir. We look forward to seeing test results from the Bargou Exploration Permit in 3Q 2013.”

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Press Release, July 16, 2013