Dragon Oil share price rises as it shrugs off global oil price rout maintaining investment spend as production rises
Dragon Oil has said it maintained capital expenditure and increased oil production in the six months to June, in the face of a global oil price rout that's forced a number of similar companies to cut investment spending.
Read more: Dragon Oil shareholders breathing fire over £3.7bn ENOC takeover bid
But shares in the Turkmenistan-focused oil producer were largely unchanged, rising 0.1 per cent to 727.5p at the open in London today.
The company said capital expenditure held steady at $313m (£202m) during this period, while production jumped to 92,060 barrels per day, up from 73,440 a year earlier.
Dr Abdul Jaleel Al Khalifa, Dragon Oil's chief exec, said:
At the beginning of June 2015 we achieved a production level of 100,658 bopd.
It is a milestone for Dragon Oil and a testament to the hard work and dedication of our talented people.
We are aiming to maintain the average daily gross production at around 100,000 bopd for the remainder of the year and sustaining this plateau thereafter for a minimum of five years.
Dragon Oil is currently in the midst of a shareholder standoff over whether to accept a £3.7bn takeover offer from Emirates National Oil Company (ENOC).
While largest minority shareholder, Baillie Gifford, has said it would not accept the offer as it materially undervalued the company, LGM Investments said it disagreed with this.