Dragon Oil production exceeds expectations

Explorer Dragon Oil said production exceeded expectations in its latest six month update.

The Turkmenistan based firm said its average gross oil production rate had risen by 25% from 73,440 barrels per day to 92,060 bpd, while gross production for the month of June was 98,890 bpd.

Dragon Oil, which Emirates National Oil Company made an £3.7bm takeover for earlier this year, said it drilled six wells in the first half of the year.

It also continued to spend on infrastructure drilling and exploration, posting a capital expenditure figure of $313m, equal to the same period last year.

Dragon Oil chief executive Abdul Jaleel Al Khalifa said its production level for June was a milestone for the company.

"We are aiming to maintain the average daily gross production at around 100,000 bopd for the remainder of the year and sustaining this plateau thereafter for a minimum of five years."

Shares in Dragon Oil were unchanged at 1135 BST at 727p.