Dragon Oil to grow production by 10%

Dragon Oil is planning to spend $1.5bn (€1.1bn) on infrastructure and drilling activities over the next two years, with the aim to reach a production target of 100,000 barrels of oil per day by late 2015.

Dragon Oil to grow production by 10%

The Dubai-headquartered firm — which started life in Ireland in the 1970s as Oliver Prospecting & Mining — expects to grow total production by approximately 10% this year and by between 10% and 15% over the next two years.

In a trading update, the firm said its gross field production, for the first quarter of this year, amounted to around 72,300 bopd; 0.7% higher than the corresponding period last year.

Capital expenditure on infrastructure, drilling, and exploration assets amounted to around $107m in the first quarter, with gross production for March amounting to around 73,400 barrels of oil per day .

Meanwhile, Davy Stockbrokers has said Irish explorer, Petroneft Resources’s recent €61.5m farm-out deal with Oil India, regarding one of its chief assets in Russia, “rejuvenates” the investment case surrounding the firm.

“We believe that the farm-out deal for Licence 61 will be roundly welcomed by shareholders as it achieves a number of important objectives: it recapitalises the group’s balance sheet, it re-starts work on the licence, and it provides a platform to grow production and reserves,” Davy’s Job Langbroek said in a research note yesterday.

More in this section

The Business Hub

News and analysis on business, money and jobs from Munster and beyond by our expert team of business writers.

Sign up
Puzzles logo

Puzzles hub

Visit our brain gym where you will find simple and cryptic crosswords, sudoku puzzles and much more. Updated at midnight every day.

News Wrap

A lunchtime summary of content highlights on the Irish Examiner website. Delivered at 1pm each day.

Sign up

Our Covid-free newsletter brings together some of the best bits from irishexaminer.com, as chosen by our editor, direct to your inbox every Monday.

Sign up