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Authoritative Independent Monthly Share Selections Using Technical & Fundamental Analysis

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Dragon Oil

December 2012

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

  • Epic Code:
  • DGO
  • Price:
  • 562p
Dragon's update for the period from 1 July to 30 September noted a 13% increase in production to 69,600 barrels oil per day, as three new wells and a sidetrack were put into production. It sold 2.8m barrels oil at an average price of US$98 / barrel (Q3 2011: US$103 / barrel). Cash generation remains prolific and in spite of capital spending of US$91m and a continuation of  its US$200m share buy-back net cash only fell to US$1,593m (Q3 2011: US$1,667m). Dragon's expansion is moving apace with two platform-based rigs scheduled for delivery to its main Dzygalybeg (Zhdanov) hub next year. Other infrastructure projects, including a new central processing facility, are currently out to tender.Meanwhile the joint venture in T ...

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With small companies there is an above average degree of risk compared to buying blue chips. Please be aware that we have not assessed the suitability of any of these investments for you. The newsletter simply states a personal view and diarises the editor’s investment decisions. Please speak to your stockbroker or other qualified individual to ascertain whether any of these companies mentioned would form useful additions to your own portfolios. Past performance is no indication of future success.

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