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.

cyril delaying the publication of their annual accounts may be considered prudent while their auditors investigate, but in the meantime it would be prudent for investors to stand back until the result of the auditors invesigations are made public.

Anyway, 80% of the market cap is cash and making money everyday.
The value of the asset is probably more than the market cap adding with huge potential, I think there is no reason to be worried.
I wish I had money to buy back more.

delaying results is never ever good news (delayed for how long?), but if the scare is pretty much unwarranted, then as Halifax told me yesterday (comparing with TLW), this looks a pretty good bet

Read http://www.rigzone.com/NEWS/article.asp?a_id=71892

Year end cash and cash equivalents, together with term deposits, was US $867 million

.....
Highlights

Growing Production

* Achieved a 28% increase in 2008 gross production with an average daily rate of 40,992 barrels of oil per day ('bopd') compared to 31,997 bopd in 2007
Related Pictures

Lam Field Turkmenistan- Chekelen Block
(Click to Enlarge)
* Exit production of 45,600 bopd at the end of 2008 (2007: 40,048 bopd)
* Completed nine development wells during 2008 compared to seven in 2007
* CIS 1 rig now being mobilised to Dzheitune (Lam) Platform 28
* Iran Khazar rig currently undergoing scheduled maintenance to be completed by March 2009
* Dragon Oil's own refurbished Rig 40 spud its first well on January 11, 2009

Strengthening Infrastructure

* Construction of 30 inch, 40 km oil and gas trunkline project underway
* Phase 2 expansion of Central Processing Facility (CPF) to handle 100,000 barrels of total liquid per day and up to 220 mmscfd of gas per day under construction
* Completed phase 2 upgrade of export facility in 2008 increasing loading capability

Stable Financial Position

* Year end cash and cash equivalents, together with term deposits, was US $867 million (2007: US $543 million)
* Capital expenditure for the year was US $307 million (2007: US $228 million)
* Fair value charge in 2008 from derivative financial instruments was US $21 million (2007: US $15 million)

.....

Struggling to pass 140p at the moment.

of course the difficulty with Turkmenistan is that it is singularly xenophobic and would much rather keep all its mineral wealth profit in its own coffers - which i suspect answers the question with regard to DGO's low rating

sp down awaiting delayed results and accounting investigation.

quite so, but my comment is still valid

Dragon Oil crystal clear purchase (Emerging Markets Investor)
Endingen (aktiencheck.de AG) - According to the experts of "Emerging Markets Investor" is the Dragon Oil shares (ISIN IE0000590798 / WKN 877789) a glass of clear purchase.
The company is a profitable oil and gas producers, especially in Turkmenistan active. Here you enjoy most political support. With USD 870 million cash, the company well positioned for further expansion plans, without further corporate action to be able to operate. Last year, the Group's daily 40,000 barrels of oil encouraged. By 2012, the daily production increased to 100,000 barrels. Because of the huge reserves and resources of 1.2 billion barrels, the company is also an attractive takeover target. The stock was last of 577 GBp GBp fallen to 147.

According to the experts of "Emerging Markets Investor" is the Dragon Oil shares at the current price level is a crystal-clear purchase. (Issue 05 of 09.03.2009) (10.03.2009/ac/a/a)
Analysis Date: 10.03.2009

It would appear that a purchase of over 55,000 @2.08euro's was made after
time(a rise of 39%)(strange?), will be interesting to see what the SP opens at tomorrow?
cyril

Claerly the report of a late trade of 2.08 euro's was a mistake.


Price $2.74 Target: $4.49 Issued: 19/12/08 Previous: $10.62 Issued: 25/08/08
Cairn Energy announced this morning (March 11th) that it plans a 6.5m share
placing, which represents 5% of the existing issued share capital. With respect to
the equity funding, the writing has been on the wall for some time.
For the period 2008 to end-2009, Cairn had curbed or indeed postponed gross
capital expenditure on its key Rajasthani oil project by some $600m. While it
protested that it had enough funds to complete the core development this year,
availability of funds for future years capex was uncertain. While in 2008 Cairn
proposed expanding its debt facility by $400m, this seemed less of an option in
2009 probably because of the poor state of credit markets and possibly because
Tullow took what debt was available for a mid-cap E&P project. Furthermore, at a
recent analyst presentation, management was coy on the topic of raising funds.
Cairn did comment that it was 'looking optimistically to see if there was an
opportunity' to raise capital.
Should Cairns placing be successful, it will remove most of the financial risk in the
stock. However, execution risk remains. Production at its Rajasthani fields has yet
to begin but is due on-stream in H2 2009. Furthermore, marketing of its Rajasthani
crude remains cloudy although the additional funds will help resolve this issue.
By its own admission, Cairn is becoming more highly geared to prevailing oil prices.
As such, we prefer Dragon Oil to Cairn as a proxy for the oil price. Although both
companies projects are of a similar and material scale, Dragons execution risk is
less. It is already producing in excess of 40,000 bopd and has recorded production
growth of 56% and 28% in 2007 and 2008 respectively.
Dragons share price now implies that its 2P reserves are worth 50c per barrel. This
severely underrates the stock. For example, on March 10th Maurel et Prom
announced that it had divested some of its Columbian assets for a minimum of
$8.20 per 2P reserve. These assets were producing at a rate 50% below Dragons
current production and the reserves involved were one-sixth of Dragons. Surely
Dragon's superior scale and strategic asset is worth more?

50c per barrel P2 reserves. "WOW"

cyril

i wonder what ENOC think about this auditor's investigation ..... had not realised they held 52% and certainly gives an interesting insight into how the calmer "mainstream" islamic countries view Turkmenistan

a little 6-month chart showing a likely stiff hurdle where 25 and 50 dmas coincide.

however, one might argue that once this audit nastiness is out of the way, and assuming it is something of nothing, then sp could head north quite sharply ..... except sp has been very dull for some months

Well I am happy to hold for the time being.

Mitzy, are you in AFR, beginning to motor with news and results out 31st?
cyril

took a small profit here the other day and switched to HOIL, which has been very successful .... may be worth dabbling again per my post above and now that sp has teased through 25/50 dma

Missed AFR @15p cyril wished I bought now what with the BLVN bid today.

cynic ref to your post 491, tend to agree regarding the nastiness, as far as the
lull in the SP, low poo along with the former hasn't helped. End of month should clarify and if alls well then 200p is imv quite achievable?
So we should know with 2 weeks, worth hanging on for?
cyril

Bowleven bid and now VPC poss bid where does that leave DGO.

There is an interview with the CEO of Dragon Oil in tomorrow's Shares Magazine available in all good high street newsagents :-0)

here's a teaser

Riding the Dragon

When I spoke to the chief executive of Dragon Oil (DGO), the Turkmenistan-focused oil explorer, there was little hint that the company was about to become embroiled in a potentially damaging internal inquiry. Abdul Jaleel Al Khalifa, 51, was in a relaxed mood and happy to talk about the groups single-country focus and what he intends to spend its significant cash pile on, in order to diversify the portfolio.

Thanks Bullshare.