Turkmenistan, Ashgabat, Feb. 26 / Trend H.Hasanov /
Dragon Oil engaged in the development of deposits in the Turkmen sector of the Caspian Sea
decided to pay dividends on the background of increasing net profit by nearly 50 percent in 2010 due to higher production and prices, the company reported.
The Company Board recommended to pay an annual dividend for 2010 - 14 cents per share.
Dragon Oil's net profit grew by 49 percent to $386.1 million in 2010 in accordance with International Financial Reporting Standards.
The company reported that $600-700 million estimated capital expenditure for oil infrastructure in 2011-13, including $250 million for 2011 projects.
Analysts believe the reclassification of gas resources into reserves was positive news.
Dragon Oil completed an 11-well drilling program during 2010 and the first week of January 2011. According to the company data, the average daily oil production has increased at the same time by 5.5 percent to 47.211 barrels, while 2009 production was 44.765 barrels of oil per day.
"Our medium-term business plan, for the period 2011 to 2013, envisages the completion of up to 40 new wells, including five appraisal wells, to support a target rate of production growth averaging 10% to 15% per annum," the report reads.
Dragon Oil (Turkmenistan) Ltd., a wholly owned subsidiary of Dragon Oil plc, holds 100% interest in and is the operator of the PSA for the Cheleken Contract Area. The operational focus is on the redevelopment of two oil-producing fields, Dzheitune (Lam) and Dzhygalybeg (Zhdanov).
Dragon Oil sold 10.8 million barrels of crude oil in 2010 (2009: 10.5 million barrels). This is 3% higher than the volume sold during the previous year due to increased production and changes in lifting position.
In 2010, approximately 60% of crude oil was exported via Baku, Azerbaijan; the balance was marketed under the swap agreement with Iran and a subsequent three-month extension, which expired in July 2010