Dragon Oil plcs principal production and exploration interests are located in the Cheleken Contract Area in the Caspian Sea, offshore Turkmenistan. The Cheleken Contract Area covers approximately 950 sq.kms and comprises two offshore oil and gas fields, Dzheitun (LAM) & Dzhygalybeg (Zhdanov), in water depths of 10 to 37 metres.

            Red = 25 day moving average.           Green = 200 day moving average.

$840m CASH in the bank, no ($0) debt and printing money with target 100000 bopd.
Gas coming to the market.

95-98p of the share price is in the bank. 50000 refining facility should worth 100p a share, never mind the rest.

DGO could be 12 if the market was not so negative.

http://moneyam.uk-wire.com/cgi-bin/articles/200810220700123866G.html

Given the exchange rate today, they have about 1 per share cash in the bank and printing money.
DGO didn't face any problem during conflicts in Georgia. They sold 100% through Iran.

why is this price so low then?

can this fall much lower? any chartists here?

DGO does not sell oil in . So cheaper is even better. Given the exchange rate today, about 66% of share in CASH.

http://www.aibcorporate.ie/servlet/Satellite?pagename=CorporateBanking/aib_corporate_banking&cid=1177400300623&c=CBContent&channel=C001&goodbodymorncomment=1214390241617

Over $800M in the bank, PE around 2-3 and no debt.
Am I missing something?

Only that sentiment trumps just about everything at the moment...but not forever thankfully.

Just bought back in,a piece from an offical Turkmenistan website which gave me the confidence to do so.

"Highly appreciating the companys activity Gurbanguly Berdimuhamedov noted with satisfaction that its expertise could set an example for many potential partners whose intense interest in co-operating with Turkmenistan increased after the results of the international audit had been officially presented."
cyril

ahoj; the reason that the SP is at this silly level, is due to a forced seller
Artio Global Management, who seems to be unloading above 120p? Not sure how many more he has to unload, but it could be as many as 30m which will be quite a drag in the short term.
But theirs news around the corner,with the Aug interim stating that well22/130
will be completed Oct and a second in Nov. So allow a little time for any snags
and we could have news next week, on top of this an update of the reserves was
promised by the end of the year.
I'm happy to have bought back in today and more than willing to wait for things to pan out.
cyril

Should be a good time to buy with oil stocks in the US in the ascendancy following market moving results from BP.

Over 4 million traded so far this am,with news around the corner regarding the
well 22/130, things looking positive. Once the forced seller has been cleared then
a re-rating to a more realistic value is a formality?
aimho
cyril

the chart below shows possibilities, but i would not trust these markets one little bit ..... apart from anything else, there are a lot of hedge funds that still need to unwind

Worth reading DGO on page 8.

http://www.davydirect.ie/content/articles/resource20081016

Above link not working? Goes on to say how DGO looks rediculously cheap at about $1/barrel of commercial reserves, normally somewhere in the region of $8.


cyril

It's just another broker site trying to make a quick buck...pump and dump.

Huh?

hlyeo98 you may be right, but the reserves and valuations are correct along with
good cash. Markets seems to be warming to them (up to 160p) at present and if
there wells which are due shortly prove successful, along with possible reserve
increase,then this will multi-bag,i will wait on drilling results before making any decision?
Perhaps the seller has finished and just maybe news has leaked of well result,
if so we could have production close to 45,000bopd filling the coffers even more?
cyril
?

Double post again.
cyril

179p + 12%
Looks like the market has woken up to DGO, i'd like to thank them for letting me in at such a bargain rate.
cyril

At the current price of 180p, I think it's the time to take profit if you are in it.
DGO will drop from here.

why?
the chart is actually quite promising, though i would certainly keep an eye on the next potential resistance at 200