Business Irish

Thursday 2 October 2014

Dragon Oil on the hunt for new assets

Published 15/01/2014 | 02:30

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The Dublin-listed company’s latest trading update show its cash balance grew to $1.9bn from $1.7bn the year before.

DRAGON Oil is continuing its hunt for new acquisitions after its cash pile grew to $1.9bn (€1.3bn) in 2013.

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The Dublin-listed company's latest trading update show its cash balance grew to $1.9bn from $1.7bn the year before.

The Turkmenistan-focused oil miner, which recently secured exploration opportunities outside of its Turkmenistan base in Tunisia, Iraq, Afghanistan and Egypt, said it was on the hunt for new assets.

"We continue the search for the right fit value-creative development asset, as well as more exploration blocks," said chief executive Abdul Jaleel Al Khalifa. Dragon guided that production growth should be between 10pc and 15pc in 2014, marginally softer than the 'around 15pc growth' guided in August.

Management reiterated targets to achieve 100,000 barrels per day in 2015. "With medium-term target growth expectations maintained, despite rig delays, and further reserve replacement -- this time on foot of the enhanced recovery programme, and a steadily increasing cash balance, we maintain our positive view on Dragon," said Goodbody Stockbrokers.

The company recorded a 9.1pc rise in production in 2013, in line with downgraded forecasts.

It warned in October that 2013 production would only grow between 9pc and 10pc, lower than a previous guidance of between 10pc and 15pc, as a result of it having drilled fewer wells.

It has assets in Turkmenistan, Iraq, Afghanistan and Tunisia -- but only one of its fields in Turkmenistan is producing oil. The rest are in development.

Shares were little changed in Dublin yesterday.

Irish Independent

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