2014 INTERIM RESULTS 5 August 2014 Exploring new opportunities
Operational and Corporate Results Dr Abdul Jaleel Al Khalifa, CEO Exploring new opportunities
Dragon Oil today The Cheleken Contract Area, offshore Turkmenistan, our main producing asset (100% interest) where we have been operating for over 14 years Turkmenistan 40% interest in Afghanistan exploration block SC 63,…
1H 2014 Key Highlights The average gross production rate in 1H 2014 was c. 73,440 bopd vs 73,600 bopd in 1H 2013 Four wells, including two sidetracks, were completed in 1H 2014 Three more wells were completed so far in 3Q14…
1H 2014 Key Highlights (cont.) Contract for Block 19 East Zeit Bay, offshore the Gulf of Suez, Egypt, signed 1st 100% operatorship block outside of Turkmenistan Baragatan-1A exploration well in SC 63, offshore the Philippines,…
Gross Production Growth 73,440 bopd in 1H 2014 on the back of two JULY AVERAGE GROSS PRODUCTION successful sidetracks and one well Completion of wells is weighted towards 2H 78,125 bopd EARLY-AUGUST GROSS PRODUCTION 81,300…
Drilling Results 2H 2014 drilling programme comprises seven to nine wells, bringing total for 2014 to 14 to 16 wells, including a number of sidetracks, in the Dzheitune (Lam) and Dzhygalybeg (Zhdanov) fields COMPLETION DEPTH WELL…
Rigs Deployment in 2014 STATUS 2014 DRILLING PROGRAMME JACK-UP RIG ELIMA CONTRACTED UNTIL MAY 2015 8 JACK-UP RIG NEPTUNE CONTRACTED FOR NINE MONTHS 4 CASPIAN DRILLER DUE IN 2H 2014 Spud in 4Q14 LAND RIG 1 CONTRACTED FOR THREE…
Secondary Oil Recovery: Artificial Lift Artificial lift application commenced in June 2013 Jet pumps installed in two wells: Dzheitune (Lam) 13/118 and 13/168 Average production increase of 500-700 bopd per well Jet pumping…
Secondary Oil Recovery: Water Injection Pilot water injection project ongoing at the Dzheitune (Lam) 75 area: Current injection rate of 3,500 bwpd Cumulative volume injected is close to 1 million barrels of water Average pressure…
Infrastructure Highlights Dzhygalybeg (Zhdanov) A platform: installed and drilling to commence shortly Installation of the Dzheitune (Lam) F platform ongoing Work commenced on the Dzheitune (Lam) E platform Construction of…
Marketing of crude oil Marketing arrangements via Baku, Azerbaijan secured until the end of 2014 for all export entitlement volumes Realised crude oil prices of US93/barrel achieved, at a 15% discount to Brent We continue to examine…
Gas Monetisation TENDERING TO SELECT A CONTRACTOR FOR EPIC OF LONG-TERM GAS SALES AGREEMENT, TARGETED THE GAS TREATMENT PLANT ONGOING WITH AWARD TOWARDS EXPORT MARKETS, AND STRIP EXPECTED SOON CONDENSATE FOR SALE 2014 2014-17 GAS…
Exploration Assets Summary NUMBER OF DRAGON OILS ASSET LOCATION, AREA WORK COMMITMENT EXPLORATION INTEREST WELLS Five-year initial exploration period Drilling of an exploration well ongoing towards the second target onshore Iraq…
Exploration Assets Summary (cont.) NUMBER OF DRAGON OILS ASSET LOCATION, AREA WORK COMMITMENT EXPLORATION INTEREST WELLS offshore Egypt Contract signed on 19 May 2014 93km2 Block 19 100% Seismic acquisition and interpretation of…
1H 2014 Financial Results Tarun Ohri, Director of Finance Exploring new opportunities
1H 2014 Financial Highlights Revenue Net profit Cash balance, net of A&D US547mn US289mn US1.9bn Higher realised oil Interim dividend of Self-financing of prices 20 US cents per share capital expenditure Improved entitlement…
1H 2014 Income Statement Revenue: Increase attributable to a 4% increase Admin expenses: Higher due to an increase in in the volume of crude oil sold and an 8% corporate costs improvement in the average realised crude oil 600 price…
1H 2014 Cash Flow Cash and term deposits of US1,859mn, Net cash from operations higher by 66% excluding the A&D funds, as of 30 June 2014 Total capital expenditure in 1H 2014 was US313mn Abandonment and decommissioning fund and…
1H 2014 Capital Expenditure 1H 2014 144 135 34 Infrastructure 2013 121 151 59 Drilling Exploration activities 2012 222 160 5 Capital expenditure in 1H 2014: Drilling Four wells, including two sidetracks, completed…
Outlook Dr Abdul Jaleel Al Khalifa, CEO Exploring new opportunities
Outlook PRODUCTION Production growth in the range of 5 to 10% in 2014 Exit 2014 at 87,000-90,000 bopd 100,000 bopd production rate at the end of 2015 Water injection pilot project at two more platforms Jet pumps in up to 14…
Outlook (cont.) DRILLING 14 to 16 wells, including sidetracks, in 2014 Four drilling rigs (two jack-up and two platform-based rigs) in 2014 Caspian Driller expected in 2H 2014 Platform-based drilling rig. 24 Exploring new…
Outlook (cont.) INFRASTRUCTURE Construction of the Dzheitune (Lam) E platform Installation of the Dzheitune (Lam) F platform ongoing Gas Treatment Plant to be awarded in 2014, operational in 2017 Contract to be awarded to…
Outlook (cont.) DIVERSIFICATION Testing of the exploration well in Iraq in 2H 2014 3D seismic acquisition in Iraq in 1H 2015 Airborne gravity and magnetic data acquisition in Afghanistan in 2H 2014 2D seismic data acquisition…
Appendices Exploration assets Exploring new opportunities
Exploration Assets Consortium of Kuwait Energy (70% and IRAQ BLOCK 9 30% operator) and Dragon Oil (30%) 866km2 Final service contract signed in Onshore in Basra province January 2013 5-year exploration period to establish…
Exploration Assets (cont.) AFGHANISTAN SANDUQLI MAZAR-I-SHARIF Operator, 40% 40% 2,583km2 2,715km2 Onshore in Mazari Sharif Onshore in Mazari Sharif Exploration and production sharing contracts formally signed in October 2013…
Exploration Assets (cont.) EGYPT BLOCK 19 Contract signed between the Petroleum 100% Ministry represented by Ganoub El Wadi 93km2 Petroleum Holding Company (GANOPE) Shallow offshore in the Gulf of Suez and Dragon Oil on 19 May 2014…
Exploration Assets (cont.) Joint Venture of Dragon Oil (55%), TUNISIA BARGOU EXPLORATION PERMIT 55% Cooper Energy (30% and operator) and 4,616km2 Jacka Resources (15%) Shallow offshore A pilot hole followed by a horizontal section…
Exploration Assets (cont.) THE PHILIPPINES SERVICE CONTRACT 63 40% to 50% (PNOC-EC is the operator) 10,560km2 NW Palawan Basin, offshore Two-stage process: Dragon Oil initially acquired a 40% participating interest from Nidos…
Investor and analyst enquiries Dragon Oil plc Anna Gavrilova + 44 20 7647 7804 agavrilovadragonoil.com irdragonoil.com Media enquiries Citigate Dewe Rogerson Martin Jackson +44 20 7638 9571 Joint Corporate Brokers Davy John Frain…
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