Steep rise in production at Dragon Oil

Caspian Sea-focused oil and gas giant Dragon Oil said it confident of delivering 15 per cent output growth in 2012 and has brought five new wells into production since the start of the year.

The group said the average daily production rate during the first quarter was 70,600 barrels a day and is on course to reach its medium-term target of 100,000 in 2015.

Commenting on the group's progress CEO Abdul Jaleel Al Khalifa said, "We have maintained a strong level of gross production in the first quarter of this year, supported by solid performance from the Dzheitune (Lam) area and good progress of the drilling programme."

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The group, which recently became a member of the Bargou joint venture off the coast of Tunisia, said the average realised crude oil price during 1Q 2012 was approximately US$107/bbl, up 13% from the same quarter in 2011.

"We have commenced tendering for a significant number of projects, including new wellhead and production platforms and associated pipelines, drilling rigs, onshore infrastructure. The group has also received the approval to start tendering for the Gas Treatment Plant," it said.

CJ