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Sunday, 20 July, 2008, 02:20 GMT | more prices >>

Dragon fires up profits

By Upstream staff

Dubai-based explorer Dragon Oil reported a 63% surge in profits to $304 million for the year ending December, while gross production touched a new record of 11.7 million barrels.

The outfit posted a $117 million rise in profits after tax to $304 million compared to the same period in 2006, largely due to increased production and higher average realised crude prices, said Dragon in its preliminary results.

Production climbed due to an accelerated drilling programme where Dragon completed six development wells and one appraisal-development well last year.

Dragon's principal development and production interests are in the Caspian Sea, offshore Turkmenistan.

Remaining proven and probable reserves stand at 651 million barrels, of which the group’s entitlement was 324 million barrels of oil and condensate at the end of last year.

The company plans to drill between eight and 10 development and appraisal wells per year for the next two years.