Mar 14

After completing the drilling of the first two wells this year, Dragon Oil is charging ahead with its 2010 Turkmenistan drilling programme. The first two wells, both located on the Cheleken contract area in the beautiful Caspian Sea, have been completely drilled. Initial testing has also begun on these two wells, named the Dzheitune A/142 and 13/143. The first well, the A/142, was drilled by the Iran Khazar rig to a depth of 3,961 metres. This well underwent extensive initial testing at a rate of 2,103 barrels of oil per day. The other well that has been completely drilled, the Dzheitune 13/143, was drilled down 3,450 metres and tested at a rate of 2,168 barrels of oil per day. It is expected that further testing will be administered in the near future.

These two wells are the first of eleven wells that are scheduled to be drilled during the 2010 year. Dragon Oil’s aim in drilling these additional wells is to secure a growth in their production of oil of at least 15 percent. The company, which is headquartered in the country of Dubai, is confident that it will be able to meet it’s committed production growth target with the addition of these eleven new wells.

The Khazar rig used to dig the A/142 well will next be completing a workover of a well located on the same platform as these first two wells. Another drilling rig, Rig 40, which was used to drill the second of the new wells, will begin to dig the Dzheitune 13/144 well in the coming months.

In response to the announcement concerning these newly drilled wells, Dragon Oil’s shares dipped 2.50p to land at 478.50p. Well, I thought it was good news!  Perhaps someone thought it was not good enough.

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