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.

StockMarketWire.com
Dragon Oil's daily production averaged 78,790 barrels of oil per day in 2014 - up from 73,750 bopd in 2013.

Average daily production rate for December was approximately 89,680 bopd with the exit rate of 92,008 bopd.

Fourteen development wells, including two sidetracks, were completed during the year and four drilling rigs are on site in the Cheleken Contract Area.

Key corporate highlights:
· Reserves replacement of 60% achieved, which is attributable to ongoing drilling operations and well performance;

· 2014 year-end oil and condensate 2P reserves amount to 663 (2013: 675) million barrels;

· Gas reserves (1.3 TCF) and contingent gas resources (1.3 TCF) amount to 2.6 TCF;

· 2C contingent oil resources of 198 million barrels and 2C contingent gas resources of 56 Bscf net to Dragon Oil on a working interest basis in the Mishrif formation in Block 9, Iraq.

Key financial highlights:
· Capital expenditure on infrastructure, drilling and exploration assets amounted to US$677 million for 2014 (2013: US$331 million);

· Group's cash balance (net of abandonment and decommissioning funds) as at 31 December 2014 was US$1,975 million (31 December 2013: US$1,924 million).

Chief executive Dr Abdul Jaleel Al Khalifa said: "In 2014, we completed 14 development and appraisal wells and commenced drilling in the Dzhygalybeg (Zhdanov) field. We grew average gross production in the Cheleken Contract Area by 6.8% - slower than we had hoped to grow it at the beginning of 2014, because in 1H 2014 we drilled fewer wells than originally planned. Drilling accelerated in the second half and well results were solid.

"In December, we reached an agreement with two buyers to export our entitlement share of the crude oil production using two routes. We achieved diversification in export routes and negotiated a better price for our crude.

"On the exploration front, we had excellent results in Block 9 in Iraq: together with our partner, Kuwait Energy, we made two oil reservoir discoveries in both targeted formations. In partnership with a major European utility company, we won two exploration perimeters in Algeria, a country rich in hydrocarbon opportunities.

"On the other hand, the exploration well in the Philippines did not discover hydrocarbons and we are assessing the remaining prospectivity of the block. We also looked at bidding to acquire an E&P company, but subsequently decided against this transaction as the oil price plummeted. We will continue to search for the right fit value-creative development asset."

Merrill Lynch note :
"Dragon Oil (Buy, PO 620p/sh)
Despite a challenging start to 2014, Dragon Oil has since continued to impress with drilling intensity and flow rates on its key Turkmenistan field. The company delivered a very strong end to 2014, exceeding exit production guidance, reaching 92 kbd (guidance 87-90kbd), with a YE15 exit rate of 100kbd, which is expected to be sustained for greater than 5 years. Meanwhile, Dragon Oil offers investors one of the strongest balance sheets in the sector (greater than 50% of balance sheet is cash), which offers scope for either opportunistic M&A deals, or share buybacks."

StockMarketWire.com
Dragon Oil's revenues rose by 4% to $1,093.1m in the year to the end of December despite being hit by the significant decline in the Brent oil price in the second half of the year.

Profits were higher by 27% on the account of the reversal of an over-provision of US$160mn made in prior years in respect of tax liabilities offset by recognition of US$85mn of social expenses and provision for impairment for exploration activity in 2014. We generated US$0.8bn from operations in 2014.

Operating profits fell by 16% to $578.6m.

The company said: "Our strong cash position allows us to maintain payment of dividends: the interim dividend was increased by 33% and today the Board announced the final dividend of 16 US cents bringing the total dividend for 2014 to 36 US cents.

"The Board continues to consider and strike the right balance of capital investment requirements for the Cheleken Contract Area, investment needs for our exploration assets, return of value to shareholders and opportunities to acquire development assets in addition to prospective exploration blocks on a selective basis, and will exercise prudence in the current low crude oil price environment."

After hours RNS possible offer.

Statement regarding possible offer for Dragon Oil plc ("Dragon Oil")

ENOC notes the earlier Dragon Oil announcement.

ENOC confirms that it made an approach for Dragon Oil on 15 March 2015. The approach reflects a premium to the closing share price of £5.09 as of 13 March 2015.

There can be no certainty as to whether or not a firm offer will be made nor as to the terms on which any firm offer might be made.