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Dragon Oil Trims 2014 Production Growth On Drilling Delays

|Includes:Dragon Oil PLC (DRAGF)

Dragon Oil reduced its 2014 production growth rate to 10% YoY from its previous estimate of 10-15% YoY announced in Feb-2014. The company attributed the reduced forecast to the delays in its Turkmenistan drilling program.

The company said in a statement: "Due to the delayed start or anticipated later start of drilling by the rigs on site or arriving to the Cheleken Contract Area later this year, we now anticipate that the production growth in 2014 will be around 10%."

Dragon Oil's average production rate in Mar-2014 was 73.4 Mbbl/d. The company is targeting production of 100 Mbbl/d in 2015.

In April-2013, Dragon Oil achieved production of 4.3 Mbbl/d from two wells in Turkmenistan drilled during Q1-2013.

In Feb-2013, Dragon Oil announced successful completion of initial testing for the Dzheitune (Lam) 28/178 development well, Cheleken Contract Area, Turkmenistan.

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Stocks: DRAGF