Dragon Oil Updates on Iraq Operations

By John Lee.

In its interim financial and operational results for the period ended 30th June 2014, Dragon Oil gave the following update on its operations in Iraq:

In Iraq, the consortium of Dragon Oil (30%) and Kuwait Energy Corporation (70% and operator) is drilling an exploration well. The well is targeting two prospective reservoirs, which, in case of a discovery, are expected to be tested in 2H 2014.

The first target has been reached, coring operation is ongoing. Concurrently, the consortium has completed an environmental impact assessment and environmental baseline studies, as part of the consortium's contractual obligations, in preparation for de-mining work and seismic acquisition.

De-mining activities commenced in early June 2014. 3D seismic acquisition activities are planned for 1H 2015.The work commitment on the block within the initial five-year exploration period will include de-mining, seismic acquisition and interpretation and drilling of an exploration well.

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

"I am pleased to report that revenues increased by 11% in 1H 2014 supported by better realised crude oil prices and higher sales volumes for our entitlement share of crude oil production from the Cheleken Contract Area in Turkmenistan ...

"The Board is pleased to announce an increased interim dividend of 20 US cents. The Board continues to focus on the diversification opportunities for the Group, ongoing capital requirements for all our assets and a strong balance sheet."

(Source: Dragon Oil)

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