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Authoritative Independent Monthly Share Selections Using Technical & Fundamental Analysis

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Dragon Oil - Output rises by a quarter

September 2011

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:
  • 455p
The highlight of Dragon's half year trading update was an impressive 25% increase in average daily output to 58,000 barrels oil per day (bopd) for the six months to 30 June, compared with 46,420 in H1 2010. This came thanks to drilling another seven development wells. 4.9m barrels oil were sold in H1, 32% higher than the previous year, while average realised prices were US$100 / barrel (H1 2010: US$75).Meanwhile, despite US$151m capital expenditure on infrastructure and drilling (H1 2010: US$174m), net cash increased from US$1,163m to US$1,256m. Management have reiterated their guidance for 20% production growth this year and 10-15% growth per annum between 2011-2013. At the same time it's still looking for acquisition targ ...

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