Dragon Oil Production, Revenues Rise in 1H 2010
Dragon Oil announced its interim financial results for the period ended June 30, 2010.
|1H 2010||1H 2009||Change|
|Profit for the Period||137.6||105.0||+31.0%|
|Net Cash Generated from Operating Activities||197.0||118.6||+66.1%|
|Cash & term Deposit Balance||1,154.9||875.4||+31.9%|
- Average gross production increased by 8% over the 1H 2010 period to 46,420 bopd (1H 2009: 42,808 bopd);
- Six new development wells, three work-overs and one sidetrack completed to date this year;
- Contract awarded for the lease and management of a new Super M2 jack-up rig to be deployed in Q4 2011;
- Contracts awarded for the construction of two new platforms, Dzheitune (Lam) C and Dzhygalybeg (Zhdanov) A, to be completed in Q4 2011 and Q1 2012 respectively; and
- Marketing arrangements in place for sale of significant volumes of crude oil through Baku, Azerbaijan.
Outlook for 2H 2010
- On track to complete a total of 11 wells during 2010 with target production growth of up to 10%;
- Target average annual production growth in the range of 10% to 15% during 2010-12;
- 30" trunkline and Phase 2 expansion of the Central Processing Facility due to be completed during the second half of 2010; and
- Discussions continue with the Turkmenistan Government regarding commercialization of gas resources.
Dr. Abdul Jaleel Al Khalifa, Chief Executive Officer, commented, "In the first half of 2010 we have continued to focus on driving production growth forward and investing in infrastructure to ensure we have the capacity to support this objective in the years ahead. We have employed a total of four rigs this year, with two of these continuing to operate on a full-time basis. In addition to the objective of completing 11 development wells by year end, we have also completed three workovers and one sidetrack to date as part of our drilling program for 2010.
"In order to further secure our future drilling capabilities, in January 2010 we awarded a contract for the lease and management of a new build Super M2 jack-up rig to be deployed in Q4 2011. In terms of the infrastructure development program, we have awarded contracts for the construction of two new platforms, Dzheitune (Lam) C and Dzhygalybeg (Zhdanov) A, to be completed in Q4 2011 and Q1 2012 respectively which together can support a total of up to 16 new development wells. This is a significant investment in our infrastructure which, combined with the new 30" trunk line and Phase 2 upgrade to the Central Processing Facility due to be completed later this year, will ensure that we are well placed to meet our production targets in the years ahead.
"Additionally we have put in place new marketing arrangements which provide us with a secure and reliable export route for our production for the year ahead. We expect to complete a further five new development wells in 2010, bringing us to a total of 11 new wells for the year and, as a result, we are targeting up to 10% production growth for 2010.
"We remain confident in our outlook for the rest of the year."
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