Dragon Oil to Maintain Production Rate of 100,000 Bopd for 5 Years

Dragon Oil announced Friday, in its 2015 half year results, that it will aim to maintain an average gross production rate of 100,000 barrels of oil per day, for a minimum of five years, from 2016.

The company achieved a gross production rate of approximately 92,060 bopd in the first half of 2015, compared to 73,440 bopd in the first half of last year. A gross production rate of 100,658 bopd was achieved on June 9, 2015.

Despite Dragon Oil’s production increase, revenue fell 18 percent from $547 million in 1H 2014 to $449 million in 1H 2015. Eight wells were completed from January 1, 2015 to August 7, 2015 and the company expects to complete a further seven to ten wells by the end of the year.

Dr Abdul Jaleel Al Khalifa, Dragon Oil chief executive officer, said in a company statement:

"Gross production has increased compared to the level in 1H 2014 on the back of strong initial flow rates from new development wells, additional perforations in certain existing wells and the application of jet pumping systems. The significant decline in crude oil prices is reflected in the financial results, and we generated $139m of net income, a drop of 52 percent from the levels achieved in the corresponding period last year.

"We surpassed the 100,000 barrels of oil per day mark on June 9, 2015, an achievement of which, we, the team at Dragon Oil, are very proud of. Since then, we are hovering around that rate. Work on our exploration assets progresses in line with programs agreed with our respective partners and host governments."