Dragon Oil has reported average daily production rate on a working interest basis was 44,765bopd for 2009. This represents a 9% increase over the comparable period in 2008 when the average daily production rate reached 40,992bopd.
Dragon Oil reached the production level of 50,000bopd at the turn of 2009. The entitlement production in 2009 was approximately 58% of the gross production compared to about 60% in 2008.
During 2009, Dragon Oil put into production eight wells in the Dzheitune (Lam) field. During the year, the company’s workover programme included a rigless workover operation conducted on Dzheitune (Lam) 13/96 well that resulted in incremental production of 783bopd.
The installation of the Dzheitune (Lam) B platform was completed in December 2009 and the Astra jack-up rig spudded the Dzheitune (Lam) B/141 development well from the platform. The contract to hire the Astra jack-up rig for six months was signed with BKE Shelf. The group plans to use this jack-up rig to drill two wells during the contract term.
The Dzheitune (Lam) B platform was installed in the western part of the Dzheitune (Lam) field. This is the second new platform built and installed in the field since Dragon Oil became the operator in the Cheleken contract area in 2000.
In December 2009, Dragon Oil awarded a two-year contract to Naftna Industrija Srbije (NIS) Naftagas for the lease and management of a land rig (the NIS Rig) in the Cheleken contract area.
The group currently has plans to drill seven wells using the NIS Rig during its contract term. The rig is being rigged up on the Dzheitune (Lam) 28 platform and is expected to spud its first well from this platform during Q1 2010. The Dzheitune (Lam) 28 platform was recently revamped to handle this land rig.
Currently, three rigs – the Astra jack-up rig, the Iran Khazar jack-up rig and the platform-based Rig 40 are drilling development wells in the Dzheitune (Lam) field, namely wells B/141, A/142 and 13/143, respectively. All three wells are expected to be put into production around the end of Q1 2010.
Rig 40 is scheduled to complete two wells during the first half of 2010 and will be engaged in the workover programme after that to enhance production from existing wells on the Dzheitune (Lam) 13 platform.
Once rigged up on the Dzheitune (Lam) 28 platform, the NIS Rig will commence drilling the first in a series of development wells in Q1 2010. In total, Dragon Oil expects to complete 11 wells in 2010.