Dragon Oil secured its first operatorship outside Turkmenistan and expects production to reach up to 90,000bo/d by the end of the year.
Dr Abdul Jaleel Al Khalifa, Dragon Oil's CEO, said: "We are pleased to report that the contract has been signed for Block 19 East Zeit Bay, offshore the Gulf of Suez, Egypt, our first 100%-operatorship block outside of Turkmenistan."
Dragon Oil’s main producing asset is the Cheleken Contract Area, offshore in the eastern section of the Caspian Sea.
The firm's CEO Dr Abdul Jaleel Al Khalifa said between 8-10 wells are still due to be completed on the firm's Turkmeni assets by the end of the year, helping to increase production to 87,000-90,000bo/d compared to the 73,440bo/d average seen in 1H 2014 (73,600bp/d in 1H 2013).
Six wells, including three sidetracks, were drilled and completed from 1 January 2014 to-date.
Capital expenditure on infrastructure, drilling and exploration assets amounted to US$295 million for 1H 2014 (1H 2013: US$149 million).
The firm also has exploration blocks in Tunisia (the Bargou Exploration Permit), Iraq (Block 9), Afghanistan (Sanduqli and Mazar-i-Sharif blocks), Egypt (Block 19) and the Philippines (Service Contract 63).
Dr Khalifa added: "In 1H 2014, managing existing production and completing two successful sidetracks allowed us to maintain the average gross production at above 73,000bo/d. Between 8-10 wells remain to be completed in 2H of the year and we expect to see rising gross production with an exit rate of 87,000 - 90,000 bo/d at the end of the year."
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