Exploration company Dragon Oil has reported an operating profit of $687.7 million for 2013; down 13% on the previous year.

The Irish-listed company, which has its main production site in the Caspian Sea – also saw a 9% drop in revenue last year to $1.05 billion.

The firm said it had completed ten wells during the year and had added new machinery to its primary site.

It said it expected to complete between 14 and 16 wells this year and a further 20 in 2015 as part of its goal of producing 100,000 barrels per day by next year.

This expansion of operations would entail a $1.5 billion capital expenditure over the next two years, it said, and would see its production rate grow by between 10 and 15% during the period.