Exploration firm Dragon Oil sold less oil in the third quarter of the year compared with 2010, but achieved significantly higher prices.
Interim results from the company show it sold 2.7 million barrels in the third quarter of 2011, a 40 per cent decline compared to the same period last year. Dragon attributed the drop to sales of accumulated inventory recorded in the 2010 period.
The Turkmenistan-focused oil company realised a crude oil price of $103 a barrel during the period, 51 per cent higher on the same period last year.
With five new wells in production since July, capital expenditure on infrastructure and drilling was $99 million in the quarter and is expected to be $200 million for the year.
The company, which is quoted in the Dublin and London stock exchanges, earlier this month signed a farm-in agreement for a 55 per cent interest in an exploration permit offshore in Tunisia. It has also agreed an extension of an existing contract with Socar Trading in Azerbaijan until December 2012 which it says will ensure its safe and uninterrupted export of crude oil.
Dragon Oil chief executive Dr Abdul Jaleel Al Khalifa said with three more wells to be completed in 2011, the company anticipated this year's gross production growth to be "somewhat above 25 per cent with a robust exit rate of approximately 70,000 barrels of oil per day".
