Dragon Oil plcs principal production and exploration interests are located in the Cheleken Contract Area in the Caspian Sea, offshore Turkmenistan. The Cheleken Contract Area covers approximately 950 sq.kms and comprises two offshore oil and gas fields, Dzheitun (LAM) & Dzhygalybeg (Zhdanov), in water depths of 10 to 37 metres.

            Red = 25 day moving average.           Green = 200 day moving average.

Dzheitune (Lam) 22/130 and A/131 wells on production

Highlights

Following initial testing from the short and long strings, development wells Dzheitune (Lam) 22/130 and A/131 have yielded rates of 2,057 and 4,621 barrels of oil per day ('bopd') respectively.

The CIS-1 rig will now be mobilised to the Dzheitune (Lam) 28 platform where it is expected to begin drilling development well Dzheitune (Lam) 28/B by the end of 2008.

The Iran Khazar rig will move to the Dzheitune (Lam) 21 platform to commence drilling development well Dzheitune (Lam) 21/132.

Dragon Oil's own recently re-furbished Rig 40 is in the process of being mobilised to the Dzheitune (Lam) 13 platform.

Dr Abdul Jaleel Al Khalifa, Chief Executive Officer, commented:

'I am pleased to announce the successful completion and initial testing of the Dzheitune (Lam) 22/130 and A/131 development wells. Dragon Oil has now achieved its 2008 target to drill and complete eight wells and we are currently in line to reach our goal of an average daily production rate of 40,000 bopd for the year.'

Drilling Details

The Dzheitune (Lam) 22/130 well was drilled to a depth of 3,770 metres, with testing of the short and long strings resulting in production rates of 1,487 bopd and 570 bopd respectively (a total of 2,057 bopd). Further testing and optimisation is scheduled to take place by the end of the year.

The Dzheitune (Lam) A/131 well was drilled to a depth of 4,120 metres, with testing of the short and long strings resulting in production rates of 2,280 bopd and 2,341 bopd respectively (a total of 4,621 bopd). Further testing and optimisation is scheduled to take place by the end of the year.

Preparations are currently being made to move the CIS 1 rig to the recently refurbished Dzheitune (Lam) 28 platform where it is expected to begin drilling development well Dzheitune (Lam) 28/B by the end of the year. This is the first of seven additional development wells to be drilled from the Dzheitune (Lam) 28 platform.

cyril

how much interest does DGO receive on 820M saving?

Drilling Update

Dzheitune (Lam) L21/132 well on production and Rig 40 spuds its first well

Highlights

Development well Dzheitune (Lam) L21/132 tested at an initial rate of 916 barrels of oil per day ('bopd')
Dragon Oil's own Rig 40 began drilling its first well, Dzheitune (Lam) L13/133, on 11 January 2009
Dr Abdul Jaleel Al Khalifa, Chief Executive Officer, commented:

'I am pleased to announce the successful completion and initial testing of the Dzheitune (Lam) L21/132 development well. Although we did not reach our intended target intervals due to some abnormally high pressures, we were still able to complete this well in our secondary intervals, with the intent to deepen this well in the future to reach the main targets.'

Drilling Details

Drilling of the Dzheitune (Lam) L21/132 well was stopped at 3,001 metres when it encountered pressures that were higher than expected. As a result, the well did not penetrate the main intended deeper intervals. The well was completed as a single completion over the secondary interval. It is envisaged that in the future the well will be deepened to penetrate the main target intervals. Initial testing of the secondary interval resulted in production rates of 916 bopd. Further testing and optimisation is scheduled to take place over the next few weeks.

Dragon Oil's own Rig 40 began drilling its first well, Dzheitune (Lam) L13/133, on 11 January 2009 on the Dzheitune (Lam) 13 platform.

The Iran Khazar rig is now undergoing planned maintenance, which is expected to be completed by the end of February 2009. At that time, the rig will relocate back to the Dzheitune (Lam) A platform to drill two additional wells.

The CIS 1 Rig completed the Dzheitune (Lam) L22/130 well in November 2008 and it is now currently being mobilised to Dzheitune (Lam) Platform 28.

A detailed update on Dragon Oil's performance will be given in its Trading Statement scheduled to be released on 20 January 2009 at 7:00am GMT.

Although just over 900bopd from a secondary terget, the high presure could be quite significant? A better picture will be given next week.
cyril

http://www.goodbody.ie/news/morn.html#4
cyril

post removed, Duplicate.
cyril

New article, click HERE

Well its now or never for me.

Moving on up nicely now needs to reach 180p.

Chart wise has broken the 50ma red line so it should rise to 180p from here imo..

Lets hope so, the second attempt recently to break out. I feel however it depends on whether Atio has finished dumping?
cyril

I understand they have.

Checking out the trades for the last 30 mins, a lot have been sold?
Off out know, will look in later.
cyril

SP begining to move, probably on the strengh of the following?

www.tdwaterhouse.co.uk/research/fp/stock_page.cfm?tracker=1431

Stock of the week
Dragon Oil
Survival of the richest

Back in July 2008 when oil was at US$147, the themes dominating the market were the burgeoning oil thirsty developing world, a dwindling US dollar, supply side disruptions and rising hostilities in the Middle East. As a result the share price of oil producer Dragon Oil (LSE, DGO) soared. Since then though, the fear of global recession of gargantuan proportions has played the primary role in steering the oil market as well as the companys share price.

As for the recession that is currently gripping the Western world, US President Barack Obama US$825 billions fiscal package is one of several measures designed to drag the domestic economy up from the floor. With other governments to follow, there will be no quick fix. However when central banks are determined to spend their way out of a recession there is little that can stand in their way, eventually.

Whereas demand will take a little time to recover, the supply side problem of the equation is growing. Current price levels render many forms of oil extraction and many projects uneconomical whilst the credit crunch is affecting the ability of many companies to raise finance to fund projects.

Meanwhile, OPEC Members seem to be abiding by their latest round of productions cuts and the US dollar looks like it may be running out of steam. We have stated on numerous occasions that in the US, a lack of fiscal restraint, loose monetary (interest rate) policy, ongoing trade deficits and a ballooning national debt have caused an increase in the supply of dollars now circulating through the global economy. The devaluing of the US dollar is something which is being engineered by US policy makers and when it arrives it will potentially inflate anything priced in dollars, oil included.


So for investors in Caspian Sea focused Dragon Oil, the future is bright, particularly given the Turkmenistan focused producer is laden with cash and has managed to increase output in 2008 and has its eyes on further gains in 2009.

Despite the hysteria surrounding the worlds energy markets, Dragon announced a 28 percent increase in average daily production (41,000 barrels of oil per day) for 2008 when compared with 2007. Encouragingly, there is little sign of any let up as the group pursues a 15 percent increase for 2009. And given their track record to date, we have little doubt that the company will achieve their objective.

Meanwhile, any short comings in oil revenue will be offset by the commercialisation of Dragons vast gas resources (which amount to 3.4 trillion cubic feet) and a doubling in capital expenditure for 2008 (to US$600 million).

The company is clearly making the most of its robust cash position (US$867 million in the bank compared to US$543 million from end of 2007) and is ramping up production when others are struggling to maintain their levels. In addition, management is keen to bolster the companys portfolio whilst current bargains prevail.

Top up time maybe?
cyril

New analysis, click HERE

Main tip in Shares today.

moving up well this pm could finally push 170p.

Incredible amount of reserves here !....if there is an unclenching of the "fist"....a substantial rise in the sp would be on the cards.....perhaps the presidents of the USA and Iran should they meet might play that game...what's it called ? of a fist or hammer, wrapper and scissors...(sorry can't remember the game's name !).

stone, paper, scissors ..... very unfriendly looking chart for a pretty good company

An oil price rise must be coming....(though I've been saying this for some time now !)....but the reserves are tremendous and they are pumping all the time...unfriendly chart maybe...perhaps time to buy in ?, (I'm already in).

I'm out for now gl rf.