Dragon Oil (LON:DGO) has completed and tested its latest development well in the Caspian Sea.
The oil producer is currently expanding its operations in the Cheleken contract area offshore Turkmenistan, with a major three year drill programme that is expected to cost as much as US$700 million.
The latest well, Dzheitune (Lam) 28/154, was drilled to a depth of 1,830 metres and it gave initial flow test results of 3,081 barrels of oil per day.
The rig has now skidded to the next slot and it has already spudded the next well, Dzheitune (Lam) 28/156.
Meanwhile another rig is drilling the Dzheitune (Lam) B/155 well, which is scheduled to start production towards the end of the quarter.
"I am pleased to report that Dragon Oil has successfully completed and conducted initial testing of the flow rate from the Dzheitune (Lam) 28/154 development well; one more well is to be put into production before the end of this quarter," said chief executive Dr Abdul Jaleel Al Khalifa.