Dubai-based explorer Dragon Oil recorded a 9% drop in revenues in 2013 compared to the previous year despite an increase in production at the same percentage point.
The oil and gas firm’s average gross daily production increased by 9.1% to 73,750 barrels of oil per day (bopd) following the completion of ten wells in the course of last year.
The company blamed the decrease in revenues on lower realised amounts from oil sales, while lower crude prices and higher provisional discount led to a 15% fall in profits compared to 2012.
But the cash generating capabilities remained strong, accumulating $0.8billion from operations, the firm stressed in its full-year financial report.
“Delays in the arrival of rigs constrained our ability to grow average gross production at a higher rate; nevertheless, the 9.1% growth achieved is a solid result and we are particularly pleased with encouraging results from the artificial lift application and management of production from existing wells,” said Dr Abdul Jaleel Al Khalifa, Dragon Oil’s chief executive.
“We continue our journey to achieve the 100,000 bopd production target in 2015, which will be maintained as a plateau from 2016.
“With the mobilisation of rigs, drilling will pick up considerably in the months ahead to enable us to reach this target; at the same time we are embarking on a number of large projects – the new 30-inch trunkline, tank farm, gas treatment plant – having prepared the ground for significant infrastructure expenditure in the medium term.”
On top of the building of a gas treatment plant, the company is looking to commence drilling in several blocks in Iraq, Turkmenistan, Afghanistan, Egypt and the Philippines between 2014-16, expecting to complete up to 16 wells and increase production by an estimated 10% to 15% this year alone.