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.

Daily Oil & Gas Monitor

Dragon Oil (LON:DGO) – Cash IS King: Today’s full year results from Dragon Oil disclose the extent to which the Company’s investment plans have delivered growth, cash flow and more importantly added further strength to what was already an impressive balance sheet. We continue to believe that the operational performance will improve, but the question is what will it do with the resources that it has? The final line in the outlook for the period 2013 – 2015 is instructive in that it states that the Company will “Actively pursue the diversification strategy.” So, Bowleven could be back in the frame, but to be honest, so too could any Company, especially as equity valuations remain undemanding compared to underlying asset values. Given that the Company has cash, the potential for debt and raise further finance through equity, especially as 51% shareholder is ENOC, we believe that the Company could easily seek acquisitions up to $5bn, should it so desire.

In this news:

• Drilling

o Fifteen wells completed during 2012 against an initial guidance of 13 to 15 wells

o Average gross daily production increased by 10% to 67,600 bopd

o Average daily production rate for the month of December 2012 was 73,500 bopd

o Two platform-based rigs are scheduled to commence drilling in the Dzhygalybeg (Zhdanov) area; and

o The contract to continue the use of the currently deployed jack-up rig extended for another two years

• Corporate and Commercial Developments

o 180% organic reserves replacement of 2P oil and condensate reserves

o 2012 year-end oil and condensate 2P reserves increased by 44mm bbl to 677mm bbl with oil and condensate contingent resources at 59mm bbl; gas 2P reserves and contingent gas resources remained at similar levels of c. 3tcf

o Marketing route for the full export volumes secured for two years to 31 December 2014

o Dragon Oil in a consortium of companies was awarded exploration Block 9 in Iraq; and

o Dragon Oil in a consortium of companies was selected as the winning bidder for two exploration blocks in Afghanistan

• Financial Developments

o The Board recommends the payment of a final dividend of 15 US cents per share for 2012; the full-year dividend for 2012 amounts to 30 US cents (2011: 20 US cents)

o $200mn share buyback programme was undertaken in 2012 with 22.6mm shares purchased and cancelled; and

o Cash generating abilities remained strong: $1bn was generated from operations during 2012

• Outlook for 2013-15

o Expect to complete 13 to 15 wells and two workovers in 2013 and around 20 development wells per year in 2014 and 2015

o Target annual production growth at the lower end of the medium-term guidance of 10-15% on average per annum in 2013 and around 15% in 2014 and 2015

o Achieve the 100,000 bopd production target in 2015

o Drilling from the Dzhygalybeg (Zhdanov) A and B platforms due to commence in 2H 2013

o Plans to award a contract to build the Dzheitune (Lam) D and E platforms in 2013

o The Caspian Driller jack-up rig expected for delivery in mid-2013

o Perform water injection pilot projects at the Dzheitune (Lam) 75 and 13 areas

o $1.5 billion estimated capital expenditure for infrastructure and drilling in 2013-15 in the Cheleken Contract Area

o Progress plans to build the Gas Treatment Plant; and

o Actively pursue the diversification strategy.

Dragon Oil: Nomura revises target price from 781p to 800p and stays with its buy recommendation.

sp has been ticking gently northwards for a little while (see chart at the top), and is now right on the all-time high ...... pullback or straight through? ..... likelihood is the former, but i'm happy enough just to sit tight even if it does

Straight through I hope - As of Mar 22, 2013, the consensus forecast amongst 14 polled investment analysts covering Dragon Oil plc advises that the company will outperform the market. This has been the consensus forecast since the sentiment of investment analysts deteriorated on Jul 24, 2012. The previous consensus forecast advised investors to purchase equity in Dragon Oil plc.

Annual Report and Accounts 2012

http://www.rns-pdf.londonstockexchange.com/rns/9322A_-2013-3-26.pdf

Ex dividend 3 April 12.8p payment 3 May

Dragon Oil unveils increase in output
Tue 02 Apr 2013


Dragon Oil unveils increase in output LONDON (SHARECAST) - Dragon Oil on Tuesday announced an increase in production in the first quarter as it completed wells at the Dzheitune (Lam) prospect, offshore Turkmenistan.

Production for three months to March 31st 2013, averaged 71,800 barrels of oil per day (bopd), up from 70,600 for the same period a year earlier.

Average production for March was 74,000 bopd compared to 72,000 bopd the previous year.

During the period, the company completed the Dzheitune (Lam) 28/178 and 28/179 wells which tested for initial production rates of 1,653 bopd and 1,975 bopd respectively.

The first well is currently stabilised and producing at a rate of 2,065 bopd while the latter is producing at a rate of 2,218 bopd.

Shares rose 1.54% to 660p at 12:00 Tuesday.

They are just printing cash.

£8 my 6m target

Interim Management Statement

Key highlights

· The average gross production rate in 1Q 2013 was approximately 71,800 barrels of oil per day ("bopd");

· March average gross production was approximately 74,000 bopd with the month's exit rate at about 76,400 bopd;

· Two new development wells were put into production during the first quarter of 2013;

· Installation of the Dzhygaybeg (Zhdanov) A platform is in progress;

· Tendering process for the construction of the Gas Treatment Plant has commenced;

· Capital expenditure on infrastructure and drilling was approximately US$57 million in 1Q 2013;

· The Group reached an agreement to secure a reliable marketing route for all its anticipated export entitlement production from the Cheleken Contract Area until 31 December 2014; and

· The drilling of the Hammamet West-3 exploration well commenced in early April 2013 offshore Tunisia in the Bargou Exploration Permit.




http://www.moneyam.com/action/news/showArticle?id=4579515

Dragon Oil cranking it up
By John Harrington April 23 2013, 8:06am 'The delivery of the Caspian Driller is anticipated in mid-2013 and we plan to complete up to two wells using this rig in the second half of the year,' the company revealed."The delivery of the Caspian Driller is anticipated in mid-2013 and we plan to complete up to two wells using this rig in the second half of the year," the company revealed.

Production is steadily ramping up at Dragon Oil (LON:DGO), the international oil and gas exploration, development and production company revealed in a first quarter trading statement.

The average gross production rate in the first quarter of 2013 was around 71,800 barrels of oil per day (bopd), up from 70,600 bopd in the corresponding quarter of 2012.

Two new development wells were put into production during the quarter, resulting in average gross production cranking up to 74,000 bopd in March. By the end of the quarter, daily production was up to around 76,400 barrels.

With Brent crude averaging about US$112.60 per barrel during the first quarter of 2013, the average provisional realised crude oil price during the quarter was around US$92 a barrel (bbl), down from US$107/bbl the year before.

The group said capital expenditure on infrastructure and drilling in the first three months of the year totalled around US$457mln. The infrastructure spend in 2013 is expected to amount to around US$200mln, with about US$300mln to be spent on drilling.

At the end of the quarter, cash and cash equivalents and term deposits stood at US$1,579mln, versus US$1,737mln at the end of 2012.

Other highlights of the year so far include an agreement to secure a reliable marketing route for all its anticipated export entitlement production from the Cheleken contract area until 31 December 2014, and the commencement in early April 2013 of drilling of the Hammamet West-3 exploration well, offshore Tunisia in the Bargou exploration permit.

Dr Abdul Jaleel Al Khalifa, Dragon Oil’s chief executive officer, revealed that initial results from the drilling in the Bargou permit are expected towards the end of the second quarter of 2013, with more detailed analysis to follow.

“Drilling activity is expected to pick up in the second half of the year with the arrival of the two platform rigs secured for drilling in the Dzhygalybeg (Zhdanov) field and the Caspian Driller jack-up rig.

“In Iraqi Block 9, the joint management committee and the partners agreed to conduct the necessary work to enable the drilling of an early well - this reflects the confidence in the existing geological data for the block," he added.

For 2013, the board has indicated that growth in production will be towards the lower end of its medium-term guidance range of 10-15% on average per year.

The board of Dragon Oil has recommended a final dividend for 2012 of 15 cents, unchanged from the interim dividend.

Shares in Dragon Oil rose 1% to 610.5p in early trading.

Sold my holding - in at 520 out at 634.

bought many years ago, No intention to sell below £10.

Did not have a large holding, have my fingers in other big pies. Well done ahoj.

Interesting chart, operating profit up 20%. Anybody following these?

Took the plunge yesterday went long @ 573.85 stop to entry.

Looks interesting but resistance at 610p.

MACD looking very healthy.

Tempting.

I'd be happy with 600p gf.

Well yep these quick return small target trades are a positive thing in this present market. Its like the counter attack in football.

Positive trading to suit the times.

Im all for that.

Stop to target 600p