Executive Summary
Dragon Oil (LON:DGO) is an oil and gas development and production company that operates in the Caspian Sea. Its main focus is on the Cheleken Contract Area and the company has reserves of 617m barrels of oil and gas reserves of 3.1bn cubic feet of gas reserves (probable and proved). Dragon Oil is listed on both the London and Irish Stock Exchanges, and it is headquartered in Dubai. In 2009, the company earned revenue of $623m and a net profit of $259m. In July 2010 the company announced the successful completion and initial testing of three new wells in the Caspian Sea, having already completed 3 earlier this year. It aims to complete a further five wells in the remainder of 2010.
Company History
In May 2000, a production sharing agreement was signed with a state agency of the Government of Turkmenistan (the “PSA”). The PSA has a 25-year term which expires in May 2025 with an exclusive right on the part of Dragon Oil (Turkmenistan) Limited to negotiate an extension for a further period of not less than 10 years.
Main Products
Dragon Oil plc’s principal development and production interest is located in the Cheleken Contract Area in the Caspian Sea, offshore Turkmenistan. The Cheleken Contract Area covers approximately 950 square kilometres (235,000 acres) and comprises two offshore oil and gas fields, Dzheitune ("LAM") and Dzhygalybeg ("Zhdanov"), in water depths of between 8 and 42 metres.
Dragon Oil had proved and probable oil reserves at 31/12/ 07 of 651 million barrels (of which Dragon Oil’s share was 324 million barrels) and 3.4 trillion cuft of gas resources. [1]
Operations
The operational focus for the Dragon Oil group is on the re-development of its two producing fields that were discovered during the Soviet era in Turkmenistan. There are currently 44 active wells producing from 9 platforms. Dragon Oil's average field production rate for H1 2008 from the Cheleken Contract Area was 38,482 bopd.
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Main Competitors
Competitive Strengths and Issues
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Senior management
