Dragon updates production growth in Turkmenistan

Source:Dragon Oil plc

Dragon updates production growth in Turkmenistan Dragon Oil plc (Ticker: DGO), an international oil and gas exploration, development and production company, publishes an update on the guidance for the 2014 gross annual production growth in the Cheleken Contract Area, Turkmenistan.

In the second quarter of 2014, Dragon Oil completed two sidetracks and is currently completing two development wells, the results of which will be reported in the quarterly drilling update at the beginning of July. The sidetrack drilled from the Dzheitune (Lam) 4 platform to appraise the location for the Dzheitune (Lam) H platform encountered water and will be side-tracked in the future. We anticipate that recoverable reserves attributed to this area to be downgraded; however, we expect that this will be balanced by addition of reserves from drilling results we are seeing in the A-sands, jet pump application and water injection pilot project.

Taking into account the performance in the first half of the year and our forecasts for the second half of the year, we now expect the average gross production growth from the Cheleken Contract Area to be in the range of 5% to 10% in 2014. We re-iterate our drilling programme of between 14 and 16 wells, most of which will come into production in 2H 2014; we expect to exit at 87,000-90,0000 bopd in 2014 and maintain our guidance for an exit rate of 100,000 bopd in 2015.

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