Central Asia-focused Dragon Oil announced Tuesday that it plans to put up to 16 development wells into production in 2012, representing an upgrade from the 13-well target it started at the start of the year.
Dragon's principal producing asset is in the Cheleken Contract Area in the eastern section of the Caspian Sea, offshore Turkmenistan. This area covers approximately 367 square miles and comprises two offshore oil and gas fields: Dzheitune (Lam) and Dzhygalyberg (Zhdanov) in water depths of up to 140 feet.
So far this year, Dragon has completed 12 wells, including two sidetrack wells in the Dzheitune (Lam) field. The company's leased platform-based rig is currently undergoing scheduled maintenance, but it has secured an extension to the contract to use it to drill a further three wells.
Dragon said it expects to see delivery of the new-build jackup Caspian Driller (300' ILC) rig towards the end of this year. It is scheduled to be ready for drilling in the first quarter of 2013.
Dragon also reported that its average production for the first half of 2012 reached 64,200 barrels of oil per day (bopd)– an increase of 10.7 percent over the comparable period of 2011.
However, in the second quarter gross production was affected by a choking down of certain wells to control sand production.
"We are close to restoring field production to 70,000 bopd after resolving the sand production issue," Dragon CEO Dr Abdul Jaleel Al Khalifa said in a statement.
"Given the pace of the drilling program so far this year, we have optimized the schedule to complete up to 16 wells, including two sidetracks, in total by the end of 2012. We also anticipate production growth for 2012 to be in the range of 10-15 percent. We remain on target to reach the 100,000 bopd gross production level in 2015."
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