Irish-listed exploration firm Dragon Oil said its average gross production rate rose 0.7 per cent to approximately 72, 300 barrels of oil per day (bopd) in the first quarter.

The group, which announced a cut in production targets due to drilling delays in Turkmenistan earlier this month, said the March average gross production rate was approximately 73,400 bopd with the month’s exit rate at just above 73,000 bopd.

It added that capital expenditure on infrastructure, drilling and exploration assets totalled $107 million in the first quarter. It also announced that drilling of an exploration well in Iraq commenced in late March.

"Now we have three rigs drilling and one more to commence operations shortly, the pace of drilling will pick up considerably; albeit the completion of wells will be weighted more towards the second half of the year. We expect production to increase from now to the year end," said chief executive Dr Abdul Jaleel Al Khalifa.

During the first quarter, Dragon Oil sold 2.7 million barrels of crude oil, up 13 per cent on the 2.4 million barrels sold for the same period a year earlier.

The group said it expects to grow production at around 10 per cent for this year and between 10 per cent and 15 per cent during 2015-16. The production growth plan for this year calls for completion of between 14 and 16 wells and around 20 wells in 2015 based on the current and expected availability of drilling rigs.

Dragon also said it expects to spend as much as $1.5 billion on capital expenditure for infrastructure and drilling in 2014-16. The infrastructure spend in 2014 is expected to amount to approximately $200 million with about $300 million to be spent on drilling.