Dragon Oil’s production up thirty eight per cent

Source: Energy Digital

Date :24/04/2008 12:19:59

Dragon Oil said yesterday that its first quarter production increased by 38 percent, as compared to Q1 2007.

The international oil and gas exploration and production company reported that average daily production for the three month period up to March 31 reached 37,193 barrels per day.

This growth was achieved despite a number of operational challenges at the start of the year when severe winter storms were experienced in the Caspian Sea.

In particular, the unprecedented cold weather slowed production from the Dzeithune (Lam) 28/120 well. The company took the opportunity to shut in the well and install coflex pipeline. Full production levels from this well are anticipated to resume during May 2008.

Performance

Hussain Sultan, Chairman and CEO, commended the company’s employees ‘for demonstrating proactive and resourceful thinking in the unforeseen circumstances.’

Overall, Dragon Oil remains in a strong financial position and its strategic priorities include seeking prospective acquisitions to diversify its asset portfolio further.

“Going forward, we are aiming to accelerate our infrastructure investment programme with a number of major contracts in the tendering stage,” Mr. Sultan said.

April 24, 2007