Dragon Oil Plc. expects to reach a production target of 100,000 barrels of oil per day (b/d) in 2015 on the basis of a comprehensive review of the current performance and production potential of the Cheleken Contract Area in the eastern sector of the Caspian Aea offshore Turkmenistan that was carried out in 2011, the company reported.

"We are currently producing approximately 67,000 b/d of crude oil and over 140 million standard cubic feet per day (MMscf/d) of gas. With a total of 13 wells expected to be completed this year, we anticipate the 2011 exit production to reach approximately 70,000 b/d and the growth of the average daily gross production in 2011 to be above 25%," the report read.

Ten wells have already been put into production this year.

Over the 2012-15 period, the company expects to be able to maintain an average gross production growth of 10% to 15% per year, taking the gross field production to a level of 100,000 b/d in 2015, and to sustain this plateau for a minimum period of five years, according to the company.

Dragon Oil is continuously assessing options to enhance oil recovery from the reservoir, including an on-going evaluation of the merits of a water-injection program on the Dzheitune (Lam) field. The group intends to implement a pilot, water-injection project in 2012.

The Turkmenistan government has approved the tendering for equipment for this pilot project. If successful, there is a possibility to increase further the total recovery of oil from the field and to increase production beyond 100,000 b/d.

"Delivery of these production targets, including the attainment of the plateau production level of 100,000 b/d in 2015, is supported by a development plan that envisages deployment of up to three jack-up rigs, additional platform-based rigs, construction of new platforms and execution of a range of key infrastructure projects.," the report continued.

Dragon Oil (Turkmenistan) Ltd. holds 100% interest in and is the operator of the production sharing agreement for the Cheleken Contract Area. The operational focus is on the re-development of two oil-producing fields, Dzheitune (Lam) and Dzhygalybeg (Zhdanov).