Dublin-listed oil and gas firm Dragon Oil which is in talks with Emirates National Oil about being taken over has reported daily production below expectations.
Average daily output rose 11 per cent to 42,808 barrels in the first six months of the year compared to the same period in 2008, the company said, adding this was lower than the first quarter in its drilling program and operational setbacks.
Dragon Oil sold 4.9 million barrels of oil in the first half at an average price of $50 a barrel, compared with $108 a barrel a year earlier.
Dragon Oil said it still expects to complete eight wells before the end of the year as it targets annual production growth of up to 15 per cent on average from 2009 to 2011.
In June, Emirates National, the Dubai-state-controlled energy company with a 52 per cent stake said it may make an offer for the remaining shares.
About $155 million was spent in the first six months of the year on infrastructure and drilling. Capital expenditure is likely to increase in the second half, the company said.
Dragon Oil said it had $875 million in cash as of June 30th. At 1.45pm shares in Dragon Oil were off 3.2 per cent at €3.67 giving it a market capitalisation of €1.89 billion.