Dragon Oil cuts production target due to drilling delays

Irish-listed exploration firm Dragon Oil has cuts its full-year production target to 10 per cent due to drilling delays.

The company said delays to its drilling programme in the Cheleken Contract Area in Turkmenistan meant its output would rise by an estimated 10 per cent this year, rather than the 10-15 per cent previously forecast.

Dragon said it expected between 14 and 16 wells in the Turkmenistan project will be completed during 2014 with the drilling programme now expected to be weighted more towards the second half of the year.

There are three drilling rigs currently operating in the Cheleken Contract Area with Land Rig 2 expected to commence drilling later this quarter.

The latest announcement follows on from what was a difficult 2013 for the company. Last year, it saw a string of delays and well testing difficulties which resulted in a lower-than expected production rate.