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.

http://www.business24-7.ae/cs/article_show_mainh1_story.aspx?HeadlineID=1050

Confirmation of what I have been saying.

"What other expansion opportunities are you considering?

Besides terminals and lubricants, the upstream business is an area that we are seriously looking at since it is the most rewarding business in the oil industry. We have a very small business arm named Dragon in Turkmenistan and through that company without disclosing details now we are eager to find ways to grow our upstream business".

This shows that ENOC`s plan is to grow their upstream presence through Dragon. It also shows that they are considering other possibilities that they do not want to talk about.
What this means is that ENOC will most certainly not accept a bid at anything close to the present SP. It does however show how keen they are for upstream expansion and therefore a JV looks increasingly likely which as I said was the better option for Dragon shareholders in the med/long term.
This news item clearly demonstrates what I mean`t when I said that Dragons international expantion had only just started. Clearly the ENOC board have further expansion plans under current negotiation involving Dragon and that there will be more to come in the months ahead.

This is further proof that Dragon are set to become a much bigger concern in the medium term.

Fido good find,makes for excellent reading and gives one more confidence in the
company. Looking forward to tomorrow and hopefully the expected news release.
cyril

As a PS to my last post, the confirmation of ENOC expanding their upstream operations through Dragon is excellent news in regard all the potential deals that I have spoken of in the past.
With regard the Turkmenistan/UAE working parties that I am awaiting news from, there was always the chance that Dragons chairman Hussain Sultan was present at official Turkmenistan/UAE talks in his capacity of the then CEO of ENOC and that any deals would be ENOC related. However, with confirmation that ENOC are using Dragon for their upstream expansion plans, it is clear that Hussian Sultans involvement in talks were as the CEO of Dragon and that any deals that are done between Turkmenistan and the UAE/ENOC will involve Dragon oil.
As a quick reminder of what was discused at the Turkmenistan/UAE meetings over a year ago, there were discussions over further licences on the Caspian shelf. There are additional licences with large oil reserves around Dragons operations up for grabs, this would tie in well not only for Dragons operations but also in their MOU with Petronas.
Also discused was the development of the 27.5 trillion cubic feet Yashlan gas field, that is to be developed in association with the proposed TAP pipeline from Turkmenistan to India.
The purpose of the working parties was to discuss projects of a mutual interest. I have named two that were talked about at the time but there are probably others, the main thing as far as we are concerned is that Dragon are very likely to be involved in any project thats given the go ahead.

It goes without saying also that the UAE connections look set to be highly benificial in ENOC`s/Dragons international expansion as well.

http://www.investegate.co.uk/Article.aspx?id=200801160700368265L
cyril

The well Lam22/124(2414bopd) adds 25% of promised increased output for 2008 with a likelyhood of increased flow on workover.
cyril

If DGO average 45000bopd(which is conservative, considering the latest well)
at $80 i make that 45000*300*80/2=540m gross revenue.
cyril

to much good news, proberly why the SP has dropped

Could not bring myself into selling after such a strong update, still think that this will see 5 this year.

Good opportunity to add. I addedd some at 406 this morning.

I'm out for now.. see you later.

R/field theirs a chance that the gas deal will be announced at the meeting with the UAE President next month when he visits Turkmenistan?
cyril

How many times have we seen this : good update followed by a drop, I probably should have sold a couple of days ago, but staying put now. This will be above 4 sooner or later with the gas deals going on !

Also staying put, but never had any intentions of selling at this point, even if the
SP is slightly volitile. May if the correct circumstances unfold(one of my other shares coming up trumps)buy some more.
Well worth going over fido's posts as his knowledge is second to none.
cyril

Can DGO be taken over or is there a large blocking shareholder?

for the brave only, arguably a good point for entry - i.e. anticipate bounce from 25 dma

Strong trading update,but S.P. APPEARS TO BE MANIPULATERD LATELY FORa hidden agenda,not disclosed to ord. punters,any info Fido.

Dreadful stockmarket, really terrible, hate these downs and then upward spikes, makes things bloody impossible !

bit spiteful, but not much different from many if not most stocks today

Oh !, Do you remember those blue days ?, I've almost forgotten what they look like...

everything very blue today - lol!