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.

Dragon Oil notes the recent movement in Bowleven's share price and confirms that it is in the preliminary stages of exploring a possible offer for all of the issued and to be issued share capital of Bowleven.
This announcement does not constitute an announcement of a firm intention to make an offer under Rule 2.7 of the City Code on Takeovers and Mergers (the "Code"). Accordingly, Dragon Oil would like to emphasise that there can be no certainty that any offer will ultimately be made or the terms or timing on which any such offer would be made.

At long last they have decided to use some of their cashpile....

Quite a spike.

Dragon Oil pondering offer for Bowleven
StockMarketWire.com
Turkmenistan-based oil firm Dragon Oil (LON:DGO) notes the recent movement in Bowleven's (LON:BLVN) share price and confirms that it is in the preliminary stages of exploring a possible offer for all of the issued and to be issued share capital of Bowleven.

At 11:49am:
(LON:BLVN) BowLeven share price was +35.88p at 109.88p
(LON:DGO) Dragon Oil share price was -12.25p at 531.75p

StockMarketWire.com
Dragon Oil has ended its interest in Bowleven.
Dragon said that it was no longer exploring an offer for Bowleven.

The result released today is great. 1.66bln in the bank and making money on daily basis.

Key corporate highlights

-- A consortium of companies, including Dragon Oil, has been awarded an exploration, development and production contract for Block 9 in Iraq's fourth bidding round;

-- US$200 million share buyback programme commenced in June 2012 to purchase up to a maximum of 5% of the issued share capital of the Company, with approx. 11.5 million shares bought back.

Key financial highlights

-- Capital expenditure on infrastructure and drilling amounted to US$208 million for 1H 2012 (1H 2011: US$151 million);

-- Group's cash balance (net of abandonment and decommissioning funds) as at 30 June 2012 was US$1,667 million (31 December 2011: US$1,527 million).

Any idea why this has fallen?
I was expecting a decent rise!

worth a punt IMO

Dragon Oil's latest well caps a busy year for the ambitious producer
2:03 pm by Ian LyallThe latest Dragon well caps a busy year.



Dragon Oil (LON:DGO) has restated its production guidance for the year after the successful completion and testing of its latest well in the Caspian Sea.

A/177 on the Dzheitune (Lam) Field flowed at an initial 1,796 barrels of oil a day having been completed as a single producer to a depth of just over 3,000 metres.

This is Dragon’s 15th well of the year and completes an intensive drilling programme that targeted 13-15 wells.

Abdul Jaleel Al Khalifa, the company’s chief executive, said: "We have been producing at well above 70,000 barrels of oil per day since mid-August and we firmly re-iterate our production growth guidance of 10% for 2012."

Production is expected to grow between 10-15% each year in the period between 2012 and 2015, which will take output to 100,000 barrels per day during 2015.

Dragon says it aims to maintain this peak production for five years from 2016 onwards.

Dragon Oil’s output ends 2012 on a high
8:28 am by Jamie AshcroftThis morning it said that average production for the whole year was 67,600 barrels of oil per day, and by December the rate peaked at 73,500 bopd.



Dragon Oil (LON:DGO) this morning revealed that its operations in the Caspian Sea ended 2012 on a high.

Over the course of the year the company had to overcome operational challenges, mainly constrained production due to sand control issues in the wells, but it was still able to mark a 10% increase in daily production.

This morning it said that average production for the whole year was 67,600 barrels of oil per day (versus 61,500 bopd in 2011), but by December the rate peaked at 73,500 bopd.

The improvement is a result of Dragon’s extensive drill programme, which continues this year. In 2012 it drilled fifteen wells.

The drilling also led to a significant uplift in reserves - with 180% reserves replacement in the year -as it ended the year with 677mln barrels of oil and condensate reserves.

Dragon’s capex bill wasUS$382mln for the year and it ended 2012 with US$1.7bn in cash.

"Every year brings new challenges. In 2012, it was the sand control issues that we had to handle on an immediate basis,” said chief executive Dr Abdul Jaleel Al Khalifa.

“However, having mobilised all the necessary resources, procured and installed the required sand screens, we were able to restore production to normal levels and achieve a credible 10% increase in the average gross production.

“We have learnt from this experience. It is a success story for us to have been able to deal with the problem and to grow production beyond that impact.

Dragon also expanded its asset portfolio in 2012 with the addition of exploration projects in Iraq and Afghanistan.

With the group’s continued expansion it expects to increase production again in 2013, by an estimated 10-15%, based on plans to drill a further 13-15 wells this year.

But over the course of the next three years it plans to drill up to 55 wells. As a result it aims to establish total production of around 100,000 bopd by 2015, and then maintain this level of output for at least five years.

UPDATE: Dragon Oil shares advance after encouraging production update
11:39 am by Jamie AshcroftThe improvement is a result of Dragon’s extensive drill programme, which continues this year.



---Adds broker comments and share price details---

Dragon Oil (LON:DGO) shares advanced over 2% this morning as it revealed that its operations in the Caspian Sea ended 2012 on a high.

Over the course of the year the company had to overcome operational challenges, mainly constrained production due to sand control issues in the wells, but it was still able to mark up a 10% increase in daily production.

This morning it said that average production for the whole year was 67,600 barrels of oil per day (versus 61,500 bopd in 2011), but by December the rate peaked at 73,500 bopd.

The improvement is a result of Dragon’s extensive drill programme, which continues this year. In 2012 it drilled 15 wells.

The drilling also led to a significant uplift in reserves - with 180% reserves replacement in the year - as it ended the year with 677mln barrels of oil and condensate reserves.

Dragon’s capex bill was US$382mln for the year and it ended 2012 with US$1.7bn in cash.

"Every year brings new challenges. In 2012, it was the sand control issues that we had to handle on an immediate basis,” said chief executive Dr Abdul Jaleel Al Khalifa.

“However, having mobilised all the necessary resources, procured and installed the required sand screens, we were able to restore production to normal levels and achieve a credible 10% increase in the average gross production.

“We have learnt from this experience. It is a success story for us to have been able to deal with the problem and to grow production beyond that impact.

Dragon also expanded its asset portfolio in 2012 with the addition of exploration projects in Iraq and Afghanistan.

With the group’s continued expansion it expects to increase production again in 2013, by an estimated 10-15%, based on plans to drill a further 13-15 wells this year.

But over the course of the next three years it plans to drill up to 55 wells. As a result it aims to establish total production of around 100,000 bopd by 2015, and then maintain this level of output for at least five years.

Caren Crowley, analyst at Dublin based broker Davy, described it is as a strong update.

“There are positive surprises in this morning's statement, including a better-than-estimated cash position and growth in reserves while the re-iteration of production guidance is pleasing as are year-end production rates.

“These positive surprises, coupled with the possibility of further share buybacks, should help the stock trade up this morning with a marketing agreement expected shortly.”

Meanwhile Oriel Securities’s analyst Arpit Harbhajanka is expecting Dragon Oil share price to improve with future updates as the company shows it is on-track to achieve production targets, thus narrowing the current discount to asset value.

£12 is my target by this time next year.
Billions $s cash in the account and generating millions every single day. There is virtually no risk to the business.

Invested in high reward, and probably high risk areas. These have not been looked at by the EXPERTs (ANALYSTS) yet!

i think one of the problems is that ENOC hold a very large slab (51%), thus restricting the market in the shares and blocking any potential t/o ...... ENOC will not much care how sp stands

Yes, they pushed it down and made an offer about two years ago. They have difficulty to do so anymore, so they have to either bid at much higher levels or leave it until the real value of the company is realized.

Why not an external bid? It has $1.7 bln cash, almost 40% of the market cap.

ENOC don't need to do anything at all and an external bid is doomed to fail

but should fly this morning as excellent result at cheleken reported by FT

Dragon output cheer as Cheleken succeeds
http://link.ft.com/r/P75VYY/K9R48Y/182O0C/SPYWPT/OFB7A7/T3/h?a1=2013&a2=1&a3=16

zero reaction, so guess it must have been old news

Marketing arrangements
RNS
RNS Number : 7993V
Dragon Oil PLC
17 January 2013



17 January 2013



DRAGON OIL PLC

(the "Company" or together with its subsidiaries "Dragon Oil" or the "Group")

Marketing arrangements

Dragon Oil plc (Ticker: DGO), an international oil and gas exploration, development and production company, today announces that the Group has reached a two-year agreement with Socar Trading for the sale of the full volume of our export entitlement production via Baku, Azerbaijan.

The Group has reached an agreement to secure a reliable export route for all its anticipated export entitlement production until 31 December 2014, FOB (free-on-board) the Aladja Jetty. It is expected that the realised crude oil prices under this contract will be in the range of a 14-17% discount to Brent.

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

"I am pleased to announce that we will continue to work with our partners who have provided us with a stable market for the Group's growing volume of the crude oil production. We have thoroughly analysed available routes to export our share and realised that additional options can be available in two-three years, which may enable us to achieve higher realised prices in the future."



- end -

Dragon Oil extends marketing agreement for crude production
2:13 pm by Giles GwinnettAverage production for the whole year was 67,600 barrels of oil per day (versus 61,500 barrels of oil per day in 2011), but by December the rate peaked at 73,500 barrels of oil per day (bopd)

Dragon Oil (LON:DGO) has extended an agreement for transport and sale of its crude until the end of next year.

The firm has secured the deal with Socar Trading for all its anticipated export entitlement production until December 31, 2014 via Azerbaijan, it said in a brief statement.

Dragon expects the realised crude prices under this contract to be at a 14-17% discount to Brent.

Chief executive Dr Abdul Jaleel Al Khalifa said: "I am pleased to announce that we will continue to work with our partners who have provided us with a stable market for the goup's growing volume of the crude oil production.

"We have thoroughly analysed available routes to export our share and realised that additional options can be available in two-three years, which may enable us to achieve higher realised prices in the future."

Two days ago, the company's shares advanced over 2% as it revealed that its operations in the Caspian Sea ended 2012 on a high.

Average production for the whole year was 67,600 barrels of oil per day (versus 61,500 barrels of oil per day in 2011), but by December the rate peaked at 73,500 barrels of oil per day (bopd).

The improvement is a result of Dragon’s extensive drill programme, which continues this year. In 2012 it drilled 15 wells.

The drilling also led to a significant uplift in reserves - with 180% reserves replacement in the year - as it ended the year with 677mln barrels of oil and condensate reserves.

Dragon Oil upgraded by Davy after cash and reserves increased
8:55 am by Jamie AshcroftTrading at 580p a share the company’s share price is priced at a significant discount - about 20% - to the broker's NAV estimate.



Dublin based broker Davy has upgraded its valuation of Dragon Oil (LON:DGO) following an upbeat operational statement earlier this week.

The offshore oil producer, with operations in the Caspian Sea, revealed that production ended 2012 on a high peaking at 73,500 barrels a day in December after it overcame the sand control challenges that has previously constrained output earlier in the year.

Dragon also revealed a significant uplift in reserves - with 180% reserves replacement in the year - as it ended the year with 677mln barrels of oil and condensate reserves. And the company said that it ended 2012 with US$1.7bn in cash.

Davy analyst Caren Crowley increased her net asset value (NAV) estimate for Dragon today to 736p a share from 712p – though she says this NAV is for Dragon’s cash and liquid resources only.


Trading at 580p a share the company’s share price is priced at a significant discount - about 20% - to the broker's NAV estimate.

“The current share price suggests that the market will not pay up for Dragon's $1.7bn in net cash although management commenced a dividend payment in 2011 and executed a value-accretive $200m share buyback programme in 2012,” Crowley said.

With its continued expansion Dragon expects to increase production again in 2013, by an estimated 10-15%, based on plans to drill a further 13-15 wells this year.

But over the course of the next three years it plans to drill up to 55 wells. As a result it aims to establish total production of around 100,000 bopd by 2015, and then maintain this level of output for at least five years.

The produced oil is currently exported via Azerbaijan, and yesterday it confirmed that it had secured access to this reliable export route for a further two years following an agreement with Socar Trading.

Chief executive Dr Abdul Jaleel Al Khalifa said the company has thoroughly analysed available export routes and it has realised that additional options can be available in two-three years, which may enable us to achieve higher realised prices.

Under the current marketing arrangement, via the Azerbaijan route, Dragon expects realised crude prices to be at a 14-17% discount to Brent.