Additional Information
Market: LSE / ISE
Sector: Oil & Gas Exploration & Production
EPIC: DGO
Latest Price: 516.00  (0.19% Ascending)
52-week High: 609.00
52-week Low: 426.25
Market Cap: 2,640.15M
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Dragon Oil
www.dragonoil.com

Dragon Oil is an independent international oil and gas exploration, development and production company.  Our principal asset is the Cheleken Contract Area, in the eastern section of the Caspian Sea, offshore Turkmenistan. The Group’s headquarters are located in Dubai, United Arab Emirates. Dragon Oil had proved and probable oil reserves as at 31 December 2009 of 617 million barrels and 3.1 trillion cubic feet of gas resources.

Dragon Oil says RiskMetrics recommends shareholders accept ENOC’s minority buyout offer

1st Dec 2009, 10:20 am
Dragon Oil says RiskMetrics recommends shareholders accept ENOC’s minority buyout offer

Dragon Oil PLC (LSE: DGO) said proxy advisory firm RiskMetrics recommends that minority shareholders vote in favour of the planned 455 pence a share buyout offer for the Turkmenistan operating oil company by Emirates National Oil Co Ltd LLC (ENOC).

It cited RiskMetrics report concluding that "Based on comparable transactions, the historical valuation of Dragon Oil versus its peers, the premium to the then prevailing market price and the fact that this is a minority buyout, we find that 455p per share is a reasonable offer. We recommend that shareholders vote for the acquisition."

An extraordinary general meeting to vote on the proposal is set for December 11.

ENOC currently holds 51.5 percent of the company’s stock.  It announced its intention to buy out the minorities early November, valuing the company at £2.357 billion, which represented a premium of approximately 34.6 percent premium to Dragon’s price on the same day.

ENOC has said it would remain a committed majority shareholder in the company even if the takeover falls through. With the acquisition, ENOC aims to increase its reserve and production base and its exposure to Turkmenistan and the Middle Eastern region as well enhance the company’s expertise in upstream.

Dragon Oil’s principal interest is in the Cheleken contract area in the Caspian Sea offshore Turkmenistan, which it operates through a PSA (production sharing agreement) with the country’s government. The group achieved a 28% increase in 2008 gross production over the previous year with an average rate of 40,992 barrels of oil per day (bopd), marking an 11% year on year increase.

Total recoverable proven and probable oil reserves in the Cheleken area amount to 645 million barrels of oil condensate. In addition to that, the estimated contingent natural gas resource stands at 3.2 trillion cubic feet.

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