Dragon oil says H1 production up 25 pc

DUBLIN: Turkmenistan-focused oil and gas company Dragon Oil said first-half production was up 25 percent to 58,000 barrels per day, helped by new wells coming on-stream.

The Dubai-based company reiterated its forecast of production growth of up to 20 percent this year and 10-15 percent per annum for 2011-13.

It sold 4.9 million barrels of crude oil in the first six months up 32 percent from the same last year. The average price was approximately $100 per barrel.

The company said on Thursday capital expenditure in the first six months was $151 million, leaving it with a cash balance of $1.256 billion.

Dragon said it was still in talks with Turkmenistan on an agreement to sell gas in the country which is currently flared.

Shares in Dragon Oil, in which Dubai government-owned oil firm Emirates National Oil Company owns 51 percent following a failed takeover attempt in 2009 closed at 550 pence on Wednesday.

Copyright Reuters, 2011