Dragon oil reports increased production in first half

Firm updates target production growth to 15% for the year

Irish-listed exploration firm Dragon Oil said gross production for the first half of 2015 increased compared to the same period last year at 92,060 barrels of oil per day (bopd).

The company updated its production guidance growth to 15 per cent for the year and said it reached its forecasted production target of 100,000 bopd in June, when it produced 100,658 for the first time.

Production has since been at just under 100,000 bopd, resulting in a June average gross production of 98,890 bopd, compared to 76,100 bopd this time last year.

It said it expects to produce 100,000 bopd in 2016 and to stay at that rate for five years.

Dragon's principal producing asset is in the Cheleken Contract Area, in the eastern section of the Caspian Sea, offshore Turkmenistan.

According to today's analysis by Goodbody Stockbrokers, "The statement this morning from Dragon Oil continues to demonstrate the productive capacity of the Turkmen asset. As we indicated in our report in April we have yet to discern a constraint on the productive capacity of Cheleken and believe it is only a matter of time that the production 'bar' will be raised."