Irish-listed exploration company Dragon Oil said this morning it exceeded its production target for 2011.

In an update on its drilling activity in the Cheleken contract area, offshore Turkmenistan, chief executive Dr Abdul Jaleel Al Khalifa said it exited 2011 at a production rate of 71,751 barrels of oil per day, ahead of its target of 70,000, which was reached in mid-December.

He said Dragon's 2012 programme in the Cheleken area has had a successful start, with one development well already completed and tested, in addition to one sidetrack well. Drilling has commenced on schedule on its Dzheitune (Lam) C platform.

Goodbody analyst Gerry Hennigan said Dragon Oil has demonstrated "the ability to materially enhance production by side-tracking previously drilled wells".

"The good news reported today puts us in a strong position to continue to deliver solid results from the Cheleken contract area as we progress through the year," said Dr Al Khalifa.