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.

Chart wise has broken the 50ma red line so it should rise to 180p from here imo..

Lets hope so, the second attempt recently to break out. I feel however it depends on whether Atio has finished dumping?
cyril

I understand they have.

Checking out the trades for the last 30 mins, a lot have been sold?
Off out know, will look in later.
cyril

SP begining to move, probably on the strengh of the following?

www.tdwaterhouse.co.uk/research/fp/stock_page.cfm?tracker=1431

Stock of the week
Dragon Oil
Survival of the richest

Back in July 2008 when oil was at US$147, the themes dominating the market were the burgeoning oil thirsty developing world, a dwindling US dollar, supply side disruptions and rising hostilities in the Middle East. As a result the share price of oil producer Dragon Oil (LSE, DGO) soared. Since then though, the fear of global recession of gargantuan proportions has played the primary role in steering the oil market as well as the companys share price.

As for the recession that is currently gripping the Western world, US President Barack Obama US$825 billions fiscal package is one of several measures designed to drag the domestic economy up from the floor. With other governments to follow, there will be no quick fix. However when central banks are determined to spend their way out of a recession there is little that can stand in their way, eventually.

Whereas demand will take a little time to recover, the supply side problem of the equation is growing. Current price levels render many forms of oil extraction and many projects uneconomical whilst the credit crunch is affecting the ability of many companies to raise finance to fund projects.

Meanwhile, OPEC Members seem to be abiding by their latest round of productions cuts and the US dollar looks like it may be running out of steam. We have stated on numerous occasions that in the US, a lack of fiscal restraint, loose monetary (interest rate) policy, ongoing trade deficits and a ballooning national debt have caused an increase in the supply of dollars now circulating through the global economy. The devaluing of the US dollar is something which is being engineered by US policy makers and when it arrives it will potentially inflate anything priced in dollars, oil included.


So for investors in Caspian Sea focused Dragon Oil, the future is bright, particularly given the Turkmenistan focused producer is laden with cash and has managed to increase output in 2008 and has its eyes on further gains in 2009.

Despite the hysteria surrounding the worlds energy markets, Dragon announced a 28 percent increase in average daily production (41,000 barrels of oil per day) for 2008 when compared with 2007. Encouragingly, there is little sign of any let up as the group pursues a 15 percent increase for 2009. And given their track record to date, we have little doubt that the company will achieve their objective.

Meanwhile, any short comings in oil revenue will be offset by the commercialisation of Dragons vast gas resources (which amount to 3.4 trillion cubic feet) and a doubling in capital expenditure for 2008 (to US$600 million).

The company is clearly making the most of its robust cash position (US$867 million in the bank compared to US$543 million from end of 2007) and is ramping up production when others are struggling to maintain their levels. In addition, management is keen to bolster the companys portfolio whilst current bargains prevail.

Top up time maybe?
cyril

New analysis, click HERE

Main tip in Shares today.

moving up well this pm could finally push 170p.

Incredible amount of reserves here !....if there is an unclenching of the "fist"....a substantial rise in the sp would be on the cards.....perhaps the presidents of the USA and Iran should they meet might play that game...what's it called ? of a fist or hammer, wrapper and scissors...(sorry can't remember the game's name !).

stone, paper, scissors ..... very unfriendly looking chart for a pretty good company

An oil price rise must be coming....(though I've been saying this for some time now !)....but the reserves are tremendous and they are pumping all the time...unfriendly chart maybe...perhaps time to buy in ?, (I'm already in).

I'm out for now gl rf.

Down 5% tofay looking for 152posh before buying also.

I missed buying today dearie me always the next day..!

Managed to grab a few this am.

Results due in less than 2 weeks (4th), it'll be interesting to read what progress is being made on the gas line and the drilling front, don't see to much on the figures
as we've recently had an upgrade.
cyril

"OUCH"

RNS Number : 9299N
Dragon Oil PLC
26 February 2009

?
26 February 2009
DRAGON OIL plc
("Dragon Oil" or the "Company")


Investigation within the Marketing and Contracts Departments


On the advice of the executive management team and following a scheduled
internal audit review, the Board of Dragon Oil has commenced an investigation
into certain possible irregularities identified in its procurement procedures.
These irregularities involve possible improper conduct between certain former
senior managers in the Company's Marketing and Contracts Departments. The
Internal Audit Department and KPMG (Dubai) have been engaged to assist in this
in-depth assessment.


The Board is investigating these irregularities and is undertaking a thorough
review of all Company procurement procedures. The Board is taking appropriate
legal advice on all matters associated with the investigation. The relevant
authorities have been informed or are in the process of being informed of the
investigation.


Final results of the investigation and any resulting actions may ultimately take
some time to complete. However, the Board expects to be in a position to update
shareholders on progress being made in the investigation before the end of
March.


The announcement of Preliminary Results for the year ended 31 December 2008 was
due to be published on 4 March 2009. However, as a result of the identification
of these alleged irregularities, the Board has decided to delay the publication
of these results until it has had the opportunity to consider the initial
results of the investigation and is in a position to determine the impact, if
any, the investigation will have on the Company's financial position.


Dr. Abdul Jaleel Al Khalifa, Chief Executive Officer, commented:


"This matter is completely unacceptable. Having identified the possibility of
these irregularities, the Board is moving swiftly to investigate the possible
irregularities and will take actions to ensure that purchasing procedures are
operating properly and that appropriate actions are taken.


An initial review suggests that the matter will not have a material impact on
the financial position of the Company. Dragon Oil remains committed to executing
its strategy of developing its oil and gas production activities and field
infrastructure and to diversifying its asset portfolio."


For further information please contact:


Investor and Analyst enquiries
Dragon Oil Plc (+971 4 305 3600)
Dr. Abdul-Jaleel Al-Khalifa, Chief Executive Officer
Leanne Denman, Investor Relations Officer


CYRIL

Well the last paragraph seems to steady my nerves?

cyril

Looks like DGO is following the footsteps of Sibir Energy and Equator Petroleum.

Sp crashed this am.

A lot of buys at this level, could see 140p at close?
cyril