14 January 2015
DRAGON OIL PLC
(the "Company" or together with its subsidiaries "Dragon Oil" or the "Group")
Drilling and Production Update
· Gross production in 2014 averaged 78,790 barrels of oil per day (bopd), a 6.8% increase over the corresponding 2013 level;
· Average gross production in December 2014 reached 89,680 bopd;
· Exit rate of 92,008 bopd achieved.
Dragon Oil plc (Ticker: DGO), an international oil and gas exploration, development and production company, today publishes an update on the drilling activity in Cheleken Contract Area, Turkmenistan, and its exploration assets in the fourth quarter of 2014 and production numbers for 2014 and December 2014.
Turkmenistan
Since the previous quarterly drilling update on 10 October 2014, Dragon Oil has completed four wells in the Dzheitune (Lam) field. Below is the table that summarises the results of drilling:
|
Well
|
Rig
|
Completion date
|
Depth (metres)
|
Type
|
Initial test rate (bopd)
|
|
Lam C/195
|
Neptune
|
November
|
2,421
|
Development
|
2,002
|
|
Lam 28/196
|
Elima
|
November
|
2,100
|
Development
|
1,952
|
|
Lam 22/194
|
Land Rig 1
|
December
|
3,252
|
Development
|
Being tested
|
|
Lam 28/197B
|
Elima
|
December
|
1,943
|
Development
|
Being tested
|
In 2014, Dragon Oil completed a total of 14 development and appraisal wells: 13 in the Dzheitune (Lam) field and one in the Dzhygalybeg (Zhdanov) field.
The Neptune rig is currently drilling the Dzheitune (Lam) C/198 development well; the Elima jack-up rig is drilling the Dzheitune (Lam) 13/199 well and Land Rig 2 is drilling the Dzhygalybeg (Zhdanov) A/102 well.
Four drilling rigs are now operational in the Cheleken Contract Area with the Caspian Driller expected to commence operations later in 1Q 2015.
Iraq
In December 2014, the consortium of Dragon Oil (30%) and Kuwait Energy (70% and operator) reported their second oil reservoir discovery at Block 9 in Iraq. The successful discovery was at the consortium's second target, the Yamama formation at 4,000 meters, in the exploration well Faihaa-1. Preliminary tests of the Faihaa-1 Yamama formation resulted in the oil flow rates of around 5,000 and 8,000 bopd of 35 API crude on 32"/64" and 64"/64" chokes, respectively.
The consortium's strategy is to accelerate the evaluation of the Faihaa-1 discovery by drilling two appraisal wells in 2015 in order to fast track the development.
Production
The average Cheleken gross field production for 2014 was approximately 78,790 bopd (2012: 73,750 bopd), representing an increase of 6.8% over the corresponding period in 2013. The average production for December 2014 was 89,680 bopd (December 2013: 72,900 bopd). The exit rate in 2014 was 92,008 bopd (2013: 74,812 bopd).
The Trading Statement is due for publication on 20 January 2015.
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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, the Philippines and Algeria. 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.