Dragon Oil has generated revenues of $1.16 billion for the year-ended December 31, 2012, a 0.4% rise from $1.15 billion for the year-ended December 31, 2011.
The results fell short of expected revenue for the year of $1.2 billion following a sharp, 8% decline in operating profit from $856.2 million for the period, down to $790.9 million.
“The year was not an easy one for us. We faced sand control issues in certain wells in 2Q 2012, which temporarily reduced production rates. We mobilised our highly professional and experienced operational teams to tackle the challenge; the production quickly returned to the previous level,” said the company in a statement.
The company has seen average gross daily production climb by 10% to 67,600 bpd, with average production for December 2012 up at 73,500 bpd. But this was at the lower end of the medium-term guidance on average per year for 2013.
The company’s 2012 year-end oil and condensate 2P reserves increased by 44 mn barrels to 677 mn barrels with oil and condensate contingent resources at 59 mn barrels; gas 2P reserves and contingent gas resources remained at similar levels of c. 3 TCF;
The company expects to complete 13 to 15 wells and two workovers in 2013 and around 20 development wells in 2014, and another 20 in 2015. And the company is expecting to spend $1.5 billion on infrastructure and drilling over the next two years in the Cheleken Contract Area.Â
