Dragon Oil sets production at 100,000 bopd

Dragon Oil has set new a production target of 100,000 barrels of oil per day for at least five years from 2016 onwards, the Turkmenistan-based exploration and production independent announced Friday.

The company’s second-quarter results revealed a gross production rate of about 92,060 barrels of oil per day during the first half of 2015. This marks a more than 25-percent increase over 73,440 barrels of oil per day in the same period of 2014.

Even though Dragon Oil’s revenues have decreased from $547 million in the first quarter of 2014 to $449 million in the first quarter of 2015, the company has plans for expansion. The independent aims to complete between seven and 10 wells in the second half of 2015, adding to the eight wells already completed in 2015.

The addition of new wells along with increased spending on infrastructure and drilling has contributed to the company’s hike in production rates. “Gross production has increased compared to the level in the first half of 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,” Abdul Jaleel Al Khalifa, Dragon Oil’s CEO, said in a company statement.

The company’s sales have almost doubled from 5.9 million barrels of crude oil in the first half of 2014 to 10.1 million barrels last year. A total of 87 percent of the oil it produced was exported to Azerbaijan.