Dragon Oil drills high-debit well in Turkmen part of Caspian Sea

Oil&Gas Materials 10 May 2011 18:53 (UTC +04:00)

Turkmenistan, Ashgabat, May 10 / Trend H. Hasanov /

Dragon Oil plc (Ticker: DGO), an international oil and gas exploration and production company, announces the completion and initial testing of the Jeytun (Lam) 28/154 development well, the company said.

The Jeytun (Lam) 28/154 well was drilled at a depth of 1,830 metres and completed as a single producer by the NIS rig. The initial test result from the well was 3,081 barrels of oil per day ("bopd"). The NIS rig has skidded to the next slot and spudded the Jeytun (Lam) 28/156 well.

The company's activity is conducted in the eastern sector of the South Caspian Basin - in the Contract Area "Cheleken" with reserves of 80 million tons of oil and 88 billion cubic meters of natural gas. The basic PSA agreement with the Turkmen government was signed in 1999. The total area of the contract area is approximately 950 square kilometers. It includes the following deposits Jeytun and Jigalibeg and Chelekenyangummez.

Dragon Oil, registered on the London and Dublin stock exchanges, planned the volume of capital investments to develop the Turkmen oil production infrastructure to the amount of $ 250 million for 2011.

The costs amounted to approximately $74 million in the first quarter of this year (over the same period of 2010 - $ 67 million).

More than forty new wells have been commissioned since the implementation of the project. More than a dozen of offshore platforms have been reconstructed and constructed. More than 80 kilometers of pipelines have been laid. The export opportunities have been expanded. The additional storage facilities have been constructed. It was possible to load two tankers at the same time.