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.

Telegraph Questor column said buy today.

http://www.telegraph.co.uk/money/main.jhtml;jsessionid=2MJAA0JFKERKJQFIQMGCFFWAVCBQUIV0?view=DETAILS&grid=&xml=/money/2008/01/08/cxquest108.xml

This might take off again tomorrow!

Some excellent reading. Click on Analysis; Celtic tiger roars in Ashgabat
http://www.upi.com/International_Security/Energy/Analysis/2008/01/11/celtic_tiger_roars_in_ashgabat/8138/
cyril

As jimmy cricket said, and theirs more
http://www.neurope.eu/articles/80263.php
cyril

cyril, if there`s more put it up, great link, thankyou.

.

From BACH on advfn:

THE GAS IS ON ITS WAY:



BACH IS DEAD - 12 Jan'08 - 20:23 - 8700 of 8701


Company chief exec Hussain Sultan said a meeting with the president of Turkmenistan on Boxing Day brought agreement for a move to exploit the gas locked in the Chelekan License.


http://bajaenergys.blogspot.com/2008/01/turkmenistan-dragon-breathes-life-into.html

end

well IMO that sentence makes it pretty unequivocal that DGO have been given the green light to move ahead with its plans to begin exploitation of its massive gas reserves!

A leap in earnings over and above sale of crude is now a done deal for 2008

Bring on the upgrades!!!!



BACH IS DEAD - 12 Jan'08 - 20:38 - 8701 of 8701


The most likely suppliers of gas on the part of Turkmenistan are Malaysian Petronas, British Burren Energy and Dragon Oil headquartered in Dubai. Taken together, they can provide 5 billion to 6 billion cubic meters of gas in 2010 for the Central Asia-Center pipeline, 8 billion to 9 billion in 2011, and 2 billion to 3 billion cubic meters more than the pipeline's capacity beginning in 2012. This surplus gas is not a sufficient reason for building a new Caspian pipeline, especially since the three companies are expected to reduce production by 2017.

http://www.upi.com/International_Security/Energy/Analysis/2007/12/27/outside_view_nabucco_cut_by_caspian_line/3306/

end

News release expected from DGO on the 16th (weds)?
cyril

And theirs more.
http://www.bloomberg.com/apps/news?pid=20601103&sid=ac7ZyK0ovWrM&refer=us
cyril

According to my calculations, Dragons prospective oil production of 100,000 bopd would produce 500 million cubic feet of gas per day.

At $140 per thousand cubic metres, that would equate to $723,065,000 per annum for the gas.

Now someone tell me what the revenue on 100,000 bopd of oil will be.

Add to that the reserve upgrade.

Then the Turkmen/International expansion.

Do you see my point about upside?

Yes i certainly do and totally agree,according to a fellow poster he e- mailed to find out when they were reporting and was told Wednesday 16th.Looking forward to seeing whats what, hoping for a very positive update?
Another article
http://reuters.com/article/oilRpt/idUKL1351257020080113
cyril

fido, started buying these last july at 220, more in oct at 270/280 and more today at 422 having read your input here, and your figures on advfn, I cannot see any reason why these will go down, keep up the good work.

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.