Dragon Oil says production to rise 5%

Dragon Oil said production was 46,400 barrels of oil per day in the third quarter of the year, but average gross field production would be lower than expected for the year.

The firm blamed "infrastructure bottlenecks", saying that production would rise by 5 per cent this year.

"While this result is below our initial expectations, we are confident of resolving many of these issues with completion of the substantial infrastructure upgrade. This will provide a firm foundation for driving production growth in the years ahead," Dragon Oil's chief executive Dr Abdul Jaleel Al Khalifa said.

Dragon Oil has put four new wells into production since July. It spent about $146 million in the quarter on infrastructure and drilling.

"We remain on track to complete 11 wells this year; the results from seven wells have already been reported, while the results from two more wells are expected shortly with two further wells expected to come on stream by the year-end," the company said.

The trunkline and Phase 2 expansion of the Central Processing Facility (CPF) is nearing completion, it said, with both set to be fully operational by the end of the year. This will allow the CPF to handle up to 100,000 barrels of liquids per day and up to 220 mmscfd of gas.

Between 2011 and 2013 the company plans to drill up to 40 wells, including five appraisal wells.

In its interim management statement, the company said the average realised crude oil price during the quarter was approximately $68 per barrel, 1 per cent lower than the same period a year earlier.