Dragon Oil Records 20 Percent Rise in 1H

Dragon Oil has reported operating profits of $388.5 million for the six months to the end of June, 20% up on last time. Revenues were 11% higher at $547.0 million and profit for the period rose by 20% to $289.0m.

Average gross production rate was approximately 73,440 barrels of oil per day compared to 73,600 bopd a year ago. Average gross production for June was 76,100 bopd (June 2013: 75,800 bopd).

Chief executive, Dr Abdul Jaleel Al Khalifa, said: “I am pleased to report that revenues increased by 11% in 1H 2014 supported by better realised crude oil prices and higher sales volumes for our entitlement share of crude oil production from the Cheleken Contract Area in Turkmenistan.

“Sales volumes grew on the account of improved entitlement, which was 52% for the period compared to 44% a year ago. This change was primarily driven by a pick-up in capital expenditure in the Cheleken Contract Area, which more than doubled from the level seen in the first half of last year.

“Average gross production in 1H 2014 was supported by two successful sidetracks and effective management of the existing production. Having recently put on stream a successful Dzheitune (Lam) A/189 development well, which is now flowing at above 2,000 bopd, as well as the Dzheitune (Lam) A/190 well, as of the beginning of August we are producing at around 81,000 bopd.

“With regard to the exploration assets, we had a disappointing result in the Philippines: the Baragatan-1A well did not discover hydrocarbons. We are assessing our future interest in this block. In Iraq, the first target of the exploration well currently being drilled has been reached and drilling is continuing towards the second target. The consortium plans to evaluate both targets in 2H 2014. We also signed the contract for Block 19 East Zeit Bay, offshore the Gulf of Suez, Egypt, our first 100%-operatorship block outside of Turkmenistan.

“The board is pleased to announce an increased interim dividend of 20 US cents. The board continues to focus on the diversification opportunities for the group, ongoing capital requirements for all our assets and a strong balance sheet.”

Press Release, August 05, 2014