China sichert sich Kasachische Ölförderer

Die groß angelegten Militärübungen Russlands und der VR China haben gezeigt, dass sie nun in der Lage sind, die Stabilität im Asiatisch-Pazifischen Raum aufrechtzuerhalten. Die antiterroristischen Übungen der Schanghaier Organisation für Zusammenarbeit (SZO) und der GUS dienen dem Zweck, ein bewaffnetes Stabilisierungszentrum in Zentralasien als ein Gegengewicht zu den USA und der NATO zu schaffen, die Afghanistan besetzt haben. Ein weiteres Zentrum entsteht im Raum des Kaspisees, wo Iran als Russlands Verbündeter auftritt.

All das bildet einen Bogen vom Kaspisee in Richtung Osten, d. h. in Richtung der Öl- und Gaslieferungen an die sich stürmisch entwickelnden Länder China und Indien sowie an die USA. Vor einigen Tagen gab die chinesische nationale Ölgesellschaft CNPC den Erwerb der kanadischen Ölfirma Petrokasachstan bekannt, bald wird der Bau einer Ölpipeline aus Kasachstan nach China (Atasu - Alaschankou, 988 Kilometer) abgeschlossen.

Es wäre im Interesse der VR China und der Russischen Föderation, diese Wege abzusichern. Gerade deshalb arbeiten Russland und China so zielbewusst auf die Herstellung ihrer Kraftzentren im Asiatisch-Pazifischen Raum als Gegengewicht zu den USA. Gerade deshalb ist eine verstärkte Militarisierung der Kaspisee-Region im Gange, wo die USA Iran isolieren, Russland aus Transkaukasien verdrängen, das für Russland strategisch wichtig ist, und die Ölfelder unter Kontrolle nehmen wollen, wie sie das am Persischen Golf gemacht haben.

Aus dem Board von Tradingtalk

Öl und Gas Dragon Oil
Beginn einer Wachstumsgeschichte über mehrere Jahre
Dragon Oil erzielte im Jahr 2004 sehr gute Ergebnisse. Wir glauben jedoch, dass das nur der Anfang war. 2004 war ein erfolgreiches Jahr für das Unternehmen, besonders die zweite Hälfte des Jahres: Hohe Ölpreise verstärkten die Wirkung des steigenden Fördervolumens, der Ertrag des Unternehmens wies 2004 einen Anstieg um 18% (im Jahresvergleich) auf, das EBITDA vergrößerte sich um 43% und der Nettogewinn um 73% (im Jahresvergleich). Wir glauben, dass diese beeindruckende Entwicklung nur der Beginn einer Wachstumsgeschichte über mehrere Jahre ist.

Umfassende Erschließung des LAM Feldes würde das mittelfristige Wachstum ankurbeln; wirtschaftliche Gasgewinnung und das Zhdanov Feld sind Optionen auf lange Sicht. 2004 war das erfolgreichste Jahr in der Geschichte von Dragon Oil. Die Erfolge des Unternehmens sind darauf zurückzuführen, dass es nur eine Art von natürlichen Ressourcen (Erdöl) nur an einem seiner zwei Felder (LAM) erschloss. Ausgerüstet mit den Ergebnissen der seismischen 3-D Untersuchung und den Erträgen von einer möglichen Aktienemission würde die kompetente Unternehmensführung in der Lage sein, die Erkundungs- und Erschließungsaktivitäten am großen Cheleken Block (661 Mio. bbls der geprüften und möglichen Reserven) zu beschleunigen. Wir glauben, dass Dragon Oil dadurch in den kommenden drei bis fünf Jahren eine solide Steigerung der Kohlenwasserstoffgewinnung und des Cash Flow erzielen würde (in erster Linie an dem LAM Feld). Außerdem erstrecken sich die Wachstumsmöglichkeiten, die durch die Erschließung des Zhdanov Feldes, die Durchführung des Programms zur wirtschaftlichen Gasförderung und die Verwendung der sekundären Öl-Recovery-Methoden entstehen, weit über 2010 hinaus.

Solides Fördervolumen und Ertragswachstum werden 2005-2006 und in den nachfolgenden Jahren erwartet. Wir glauben, dass sich das Nettofördervolumen von Dragon Oil im laufenden Jahr auf 17,4mbpd verdoppeln wird. 2006 sollte das Volumen um 33% auf 23,2mbpd steigen. Nach unseren langfristigen Schätzungen könnte Dragon Oil in der Lage sein, das Fördervolumen von 5% in den Jahren bis 2015 aufrechtzuerhalten. Unsere Prognosen könnten sich jedoch als konservativ erweisen. Wir schätzen das EBITDA-Wachstum auf 137% im laufenden Jahr, auf 8% 2006 (unter Berücksichtigung der niedrigeren Ölpreise) und auf 13% in den Jahren bis 2010. Aufgrund der Abwesenheit einer progressiven Besteuerung und der Rechtsstrukturen des PSA (Production Sharing Agreement) ist Dragon Oil stark von den Ölpreisen abhängig.

Dragon Oil Sees Success with LAM Workover Program    
          §Dragon Oil      Monday, August 08, 2005


Dragon reports the successful completion of the workover of well LAM63/55 in the Cheleken Contract Area, offshore Turkmenistan. Following perforation of four intervals in reservoir Zone 4 the well tested at a rate of 1,636 barrels of oil per day ('bopd'). Prior to the workover the well was flowing at 338 bopd. The workover of well LAM63/55 was carried out on schedule.

The workover program will continue on LAM75 platform and LAM21 using the hydraulic workover unit and wireline unit respectively. A second hydraulic workover unit is currently being mobilised to the Cheleken Contract Area and is expected to commence work on Zhdanov Field in September 2005.

Hussain M. Sultan, Chairman of Dragon commented:

'This is an encouraging result from well LAM63/55 which will continue to increase production from the Cheleken Block. The arrival of the second workover unit will increase the momentum of the workover program and we look forward to its continued success.'

Eine schlechte Übersetzung!

Drache berichtet über die erfolgreiche Beendigung des Workover wohlen LAM63/55 im Vertragsbereich Cheleken, vom Land entferntes Turkmenistan. Folgende Perforierung von vier Abständen im Vorratsbehälter teilen 4 der Brunnen in Zonen auf, der mit einer Rate von 1.636 Fässern Öl pro Tag geprüft wird (' bopd '). Vor dem Workover floß der Brunnen bei bopd 338. Der Workover wohlen LAM63/55 wurde auf Zeitplan durchgeführt.

Das Workoverprogramm fährt auf Plattform LAM75 und LAM21 mit der hydraulischen Workovermaßeinheit und Funkleitungmaßeinheit beziehungsweise fort. Eine zweite hydraulische Workovermaßeinheit z.Z. mobilised zum Vertragsbereich Cheleken und wird erwartet, um Arbeit über Feld Zhdanov im September 2005 zu beginnen.

Hussain M. Sultan, Vorsitzender des Drachen kommentierte:

' dieses ist ein Anregungsresultat von wohlem LAM63/55, das fortfährt, Produktion vom Block Cheleken zu erhöhen. Die Ankunft der zweiten Workovermaßeinheit erhöht das Momentum des Workoverprogramms und wir schauen vorwärts zu seinem anhaltenden Erfolg.',  

Kaspischen Ölfirmen

www.russia4u.de/kaspi/body_kaspi.html

the next two years it should provide scope for management to sell a greater proportion of production at spot rates. Any move in that direction would obviously be beneficial, albeit that we lack any knowledge over the timeframe
of existing hedges.

Dragon’s share price has risen by over 50% since we initiated coverage in July with the stock benefiting both from the strength in crude prices (yet to adjust our long term forecasts to reflect our upgrade to commodity price assumptions) and also corporate activity in the greater Caspian region. To maintain that performance, however, particularly in light of the recent resignation of the
CEO, we believe quantifiable improvement at an operating level is required.

Provider ID: 87613040
-0- Sep/23/2005 11:12 GMT

Welche Ölproduzenten habt ihr im Depot?

In meinem Depot liegt nur Statoil.

Ich hatte kurzfristig Pioneer Natural (USA) im Depot. Hier bin ich zu früh wieder raus.

gruss

permanent

da bei Dragon Oil die meisten Reserven vorhanden sind und noch relativ wenig fördern. Das Fördervolumen ist noch um einiges gesteigert werden. Dazu kommen noch die erheblichen Reserven beim Gas dazu, wo die Förderung 2007 beginnen soll.

Diesen Monat sollen noch die Zahlen für das Halbjahr kommen, die sehr positiv überraschen werden. Laut Hanseatischer Börsenbrief basieren die Zahlen noch auf einem Ölpreis von 39$. Da denke ich ist beim Gewinn noch viel Luft nach oben.

BMB Munai ist nur eine kleine Position und ein Zock durch die Übernahmegerüchte von Sibneft.

der würde gut in meine Mischung passen.

Taos

* Progress on the new build LAM A wellhead and production platform and
new onshore 50,000 bopd process facilities are on target and expected to be
completed in Q4 and Q2 2006, respectively.

Mr Hussain M. Sultan, Chairman, commented:

" This is an excellent half year result which was achieved through a combination
of production growth and the significantly higher oil price over the same period
last year. Production growth remains our priority, and this is being achieved
through the continuous drilling and well workover programmes. We are
accelerating this in the second half of the year with the mobilisation of a
second workover unit in addition to the continuing drilling programme on the
LAM10 platform.


Although drilling well 10/110 took longer than expected due to technical
reasons, we have overcome these issues with the more recent well 10/111.

Dragon successfully completed the marine 3-D seismic survey in the Cheleken
Contract Area. A total of 654 square kilometres of data has now been acquired
over the LAM and Zhdanov fields, and over other undrilled structures in the
Cheleken Contract Area.

Processing of the marine 3-D seismic data was completed in August 2005 and the
initial results of the new data have already been used to select the location of
the new LAM A platform and to plan further development wells on the LAM 10
platform. Full interpretation and re-mapping is expected to be completed in 1Q
2006, providing a clearer picture of the fields' internal reservoir
architecture, improving identification of drilling targets and reducing
uncertainty. In addition, the seismic data will be utilised to identify new
opportunities outside the existing developed areas. Although the interpretation
has just started it is apparent that some prospective new locations for drilling
are likely to be identified within the Cheleken Contract Area."

Given high near-term commodity prices and the positive production outlook,
Dragon is set for a strong second half performance."

Enquiries:
Dragon Oil plc (+971 4 3053600) Citigate Dewe Rogerson (+44 20 7638 9571)
Hussain M. Sultan, Chairman & Chief Executive Officer Martin Jackson, George Cazenove

CHAIRMAN'S STATEMENT

I am pleased to announce positive operating results achieved in the half year
ended 30 June 2005. The Company has achieved excellent growth, due primarily to
increased production and strong crude oil prices.

Operating Performance

The average gross production from the Cheleken Contract Area during the period
was 19,533 bopd (1H 2004: 10,879 bopd) of which 14,044 bopd (1H 2004: 6,614
bopd) were attributable to Dragon. Barrels of oil sold amounted to 2,586,672
bbls during 1H 2005 (1H 2004: 1,103,469 bbls), of which 1,226,193 bbls were sold
through Neka using the Iranian swap agreement and 1,360,479 bbls were sold
through Baku, an alternative export route.

Dragon has signed a contract for an initial two year term with North Drilling
Company of Iran for the Iran Khazar jack-up rig. This rig was mobilized to the
Cheleken Contract Area in March 2005 to commence drilling from the LAM 10
platform.

Following the refurbishment of the LAM 10 platform and installation of an
in-field pipeline, drilling re-commenced at the end of December 2004 and well 10
/110 was drilled and completed. This well evaluated the deep reservoir zones by
drilling to 4,458 m in Zone 12. The deep reservoir Zones 11 and 12, were drilled
and tested for the first time at the well 10/110 location. Although these zones
tested water, significant oil potential exists and they will be further
evaluated at an up-dip location as part of the ongoing field development. The
well tested oil from Zones 4, 5, 8 and 9 at a combined rate of 1,603 barrels of
oil per day, however, technical problems prevented access below Zone 5 and the
well was put on production in July 2005 from Zones 4 and 5 only. Following
completion of well 10/110 the next well, well 10/111 was drilled to a total
depth (TD) of 3,544 metres in 48 days without any difficulties. This well has
been completed and will be tested from Zones 4, 5, and 6. A dual string
completion has been installed in this well enabling multiple zones to be
produced at the same time, thus accelerating the oil production. It is planned
to use this type of completion in future wells.


Five wells were successfully worked over in the first half of the year. Well 21/
107 was re-completed with a hydraulic workover unit (" HWU" ). Reservoir Zones 4
and 5 were perforated resulting in incremental production of 1,481 barrels of
oil per day. In addition, rigless workovers were conducted on 4 wells 21/108, 63
/64, 63/65 and 63/85 which achieved initial additional production of 1,065 bopd.
The workover programme with the HWU has continued in August with well 63/55
resulting in incremental production of 1,298 bopd. The programme will continue
utilising the existing HWU, and a second HWU is currently being mobilised to the
Cheleken Contract Area. The second unit is expected to commence work on Zhdanov
field in October 2005.


Dragon successfully completed the marine 3-D seismic survey in the Cheleken
Contract Area in April 2005. This is a key milestone in the development of the
Cheleken Contract Area. A total of 654 square kilometres of data has been
acquired over the LAM and Zhdanov fields, and further drillable structures in
the Cheleken Contract Area have been identified.


Part of the seismic data on the LAM field was 'fast-track' processed and
interpreted, and the results have been utilised to select the location of a new
LAM A wellhead and new production platform which will be installed in 2006.
Processing of the full seismic data was completed in August 2005, and
interpretation and re-mapping is expected to be completed in 1Q 2006. In
addition to identification of new drilling opportunities Dragon expects the
marine 3-D seismic survey to provide a clearer picture of the fields' internal
reservoir architecture, thereby improving identification of drilling targets and
reducing uncertainty.


Significant progress was made on Dragon's two major Engineering, Procurement and
Construction (" EPC" ) contracts. An EPC contract was awarded in December 2004 for
a new build LAM A wellhead and production platform. Engineering design of the
jacket and topside facilities was progressed in 1H 2005. Fabrication is expected
to commence in October 2005, and installation and commissioning is planned for
Q4 2006. An EPC contract for a new onshore process facility was awarded in April
2005. This facility will provide processing of up to 50,000 bopd from the LAM
field, together with crude oil storage. Engineering design, site preparation and
civil construction work as well as fabrication of the main plant are in
progress. Construction is expected to be completed by December 2005 and the new
process facility is expected to be commissioned in Q2 2006.

Board Change

Mr. Essa Almulla recently resigned as Executive Director and Chief Executive
Officer of the Company because of his wish to pursue his own personal business
interests. Mr. Hussain Sultan currently executive Chairman of Dragon has
assumed the role of Chief Executive Officer.

The Board of Dragon would like to take this opportunity to record its gratitude
to Mr. Almulla for the work which he has performed for the Company and wish him
well for the future.

Financial Review

The financial information presented in this Interim Report has been prepared in
accordance with Dragon's accounting policies under International Financial
Reporting Standards (" IFRS" ).

In May 2005, Dragon raised additional funding to support its long term field
development plan pursuant to the private placement and open offer of 99,564,661
Ordinary Shares at a price of #0.88 each, raising a net amount of US$156.2
million. Proceeds of the equity issued were utilised to fully repay the US$40
million ENOC loan facility.

While Dragon continues to utilise the loan facility provided by the European
Bank for Reconstruction and Development (" EBRD" ) which is due for repayment in
full by 2008, an amount of US$0.5 million of the facility was repaid to EBRD
during the six months to 30 June 2005. In August 2005, a further US$5.4 million
of principal was repaid to EBRD and is accordingly reclassified as a current
liability together with an amount of US$5.4 million which is due to be repaid in
February 2006 under the loan agreement.

Dragon has recognised an estimated net deferred tax liability of US$21.9 million
due to the timing differences between the charges to the income statement and
those computed under the tax laws of Turkmenistan.

Turnover increased to US$112.8 million in 1H 2005 as compared to US$34.8 million
for the corresponding period last year. The increase of US$78 million is
attributed to increased production, and higher oil prices realised during the
period.

During the period operating and production costs increased to US$18.8 million
(1H 2004: US$10 million) primarily due to direct costs attributable to higher
production, sales and additional provision for warehouse inventory.

Consequent to the increased production and revision in depletion rate arising
out of an increase in the long-term oil price forecast to US$ 30 per barrel
applied by Dragon in the calculation of its' entitlement barrels, the
Depreciation Depletion and Amortisation (" DD&A" ) charge for the period increased
to US$15.6 million (1H 2004: US$5.3 million).


Administrative expenses amounted to US$3.2 million (1H 2004: US$2.3 million)
primarily due to the diminution in value of the financial derivative held for
hedging purposes, increased staff costs and recognition of employee compensation
cost with respect to share-based payments in accordance with IFRS 2.


Net finance costs decreased to US$2.4 million (1H 2004: US$3.5 million) mainly
due to higher interest income on deposits. Exchange rate movements during the
period resulted in a charge of US$3.7 million (1H 2004: gain of US$1.1 million)
mainly due to the weakening of sterling during the period.


Other income increased to US$2.4 million during 1H 2005 (1H 2004: US$0.2
million), following the conversion of redeemable convertible preference shares
held by Dragon in Celtic Resources (Holdings) Plc into ordinary shares on 30
June 2005 and is fair valued through the income statement.


Consequently, Dragon recorded a profit for the period of US$49.6 million
compared to US$15.3 million for the first half of 2004.

Cash and cash equivalents held by Dragon increased to US$182 million at 30 June
2005, primarily due to the net proceeds following equity issued during the
period. Cash inflow from operating activities amounted to US$87 million (1H
2004: US$23.4 million).

The net book value of tangible fixed assets increased to US$362.6 million
compared to US$342 million at the end of 2004 mainly due to the continued
drilling activity. Current assets increased by US$159.9 million to US$218.4
million mainly due to an increase in cash balances, resulting from net proceeds
from equity issue and realisation of better prices for crude oil sales.


The total liabilities decreased by US$25.5 million to US$80.8 million mainly due
to repayment of the ENOC loan facility and part repayment of the EBRD facility,
and recognition of the net deferred tax liability.

Outlook

The continuous drilling programme is progressing with the Iran Khazar jack-up
drilling rig and the Company is seeking to contract a second jack-up drilling
rig in 2006 with the objective of accelerating field development and improving
production.

The workover programme will continue in 2005 and 2006 utilising the existing
HWU, a second HWU is currently being mobilised to the Cheleken Contract Area and
is expected to commence work in the Zhdanov field in October 2005.

Part of the seismic data on the LAM field was 'fast-track' processed,
interpreted, and the results have been utilised to select the location of the
new LAM A wellhead platform. Interpretation of the marine 3-D seismic data and
re-mapping is expected to be completed in Q1 2006. In addition to the
identification of new drilling opportunities Dragon expects the marine 3-D
seismic survey to provide a clearer picture of the fields' internal reservoir
architecture, thereby improving identification of drilling targets and reducing
uncertainty.


Significant progress has been made on Dragon's two major EPC contracts. The LAM
A platform is planned to be installed and commissioned in Q4 2006. The new
onshore process facility will provide processing of up to 50,000 bopd from the
LAM field, together with crude oil storage. This facility is expected to be
commissioned in Q2 2006.

Contingent gas resources in the Cheleken Contract Area have been independently
assessed at 3.4 TCF. These resources are undeveloped and represent a significant
potential resource. Following a concept design study for gas utilization
conducted last year, Dragon plans to develop the gas and is reviewing various
options.

Hussain M. Sultan
Chairman & CEO

26 September 2005



Consolidated interim condensed income statement (unaudited),

Notes
6 months ended 30 6 months ended 30 Year ended 31 Dec
June 2005 June 2004 2004
US$'000 US$'000 US$'000

Revenue 2 112,790 34,809 97,074

Cost of sales
Operating and production costs (18,820) (10,049) (20,151)
Depletion 3 (15,584) (5,311) (16,596)
--------------- -------------- --------------
Gross profit 78,386 19,449 60,327

Administrative expenses (3,193) (2,252) (5,383)
Other income 2,419 214 418
--------------- -------------- --------------

Operating profit 77,612 17,411 55,362

Finance costs (net) (2,436) (3,472) (6,926)
Foreign exchange (loss)/gain (3,763) 1,335 1,309
--------------- -------------- --------------
Profit on ordinary activities before 71,413 15,274 49,745
taxation

Taxation - deferred tax charge 9 (21,853) - -
-------------- ------------- -------------
Profit on ordinary activities after 49,560 15,274 49,745
taxation
======== ======= =======
Earnings per share
Basic 5 11.46c 3.78c 12.31c
Fully diluted 5 11.27c 3.74c 12.17c
======== ========= =========

The results for both periods have been derived from continuing operations. No
gains or losses were recognised other than those reflected in the above income
statements.

Consolidated interim condensed balance sheet (unaudited)

Notes
30 June 2005 30 June 2004 31 Dec 2004
US$'000 US$'000 US$'000
ASSETS

Non-current assets
Oil and gas interests 362,576 302,114 341,853
Property, plant and equipment 64 121 121
--------------- --------------- ---------------
362,640 302,235 341,974
--------------- --------------- ---------------
Current assets
Inventories 11,284 9,165 13,538
Investment 2,347 - -
Trade and other receivables 9,806 5,204 5,551
Cash at bank and in hand 7 194,997 38,029 39,437
---------------- ---------------- --------------
218,434 52,398 58,526
----------------- ----------------- ---------------
Total assets 581,074 354,633 400,500
========== ========= =========

EQUITY
Capital and reserves

Called -up equity share capital 11 79,212 66,332 66,335
Share premium account 11 216,036 72,257 72,688
Capital redemption reserve 77,150 77,150 77,150
Fair value reserve 283 - -
Retained earnings 127,627 43,596 78,067
--------------- --------------- ---------------
Total equity 500,308 259,335 294,240
--------------- --------------- ---------------
LIABILITIES
Non-current liabilities

Borrowings 8 21,289 32,371 26,547
------------- ------------- -------------
Current liabilities
Trade and other payables 26,824 25,844 34,980
Net deferred tax liability 9 21,853 - -
Borrowings 8
10,800 37,083 44,733
------------- ------------- --------------
59,477
62,927 79,713
------------- ------------- --------------
Total liabilities 80,766
95,298 106,260
---------------- ---------------- -----------------
Total equity and liabilities 581,074 354,633 400,500
========= ========= =========


Consolidated interim condensed statement of changes in shareholders' equity
(unaudited)

Called - up Share Capital Fair value Retained
equity share premium redemption reserve earnings
Total
capital reserve
USD'000 USD'000 USD'000 USD'000 USD'000
USD'000

At 1 January 2004 66,274 72,646 77,150 - 28,322
244,392
Shares issued during 58 41 - - -
99
the period
Issue costs - (430) - - -
(430)
Profit for the period - - - - 15,274
15,274
---------------- ---------------- ---------------- ---------------- ----------------
-----------------
At 30 June 2004 66,332 72,257 77,150 - 43,596
259,335
Shares issued during 3 1 - - -
4
the period
Issue costs expensed - 430 - - -
430
Profit for the period - - - - 34,471
34,471
---------------- ---------------- ---------------- ---------------- ----------------
----------------
At 31 December 2004 66,335 72,688 77,150 - 78,067
294,240
Shares issued during 12,877 153,087 - - -
165,964
the period

Share issue expenses - (9,739) - - -
(9,739)

Profit for the period - - - - 49,560
49,560

Employee compensation

- value of services - - - 283 -
283
provided

----------------- ---------------- ----------------- ----------------- -----------------
-----------------

At 30 June 2005 79,212 216,036 77,150 283 127,627
500,308

======== ======== ======== ======= ========
========



Consolidated interim condensed cash flow statement (unaudited)

Notes
6 months ended 6 months ended Year ended
30 June 2005 30 June 2004 31 Dec 2004
US$'000 US$'000 US$'000

Operating activities


Cash generated from operations 6 87,037 23,365 72,164
------------------ ------------------ ------------------
Investing activities
Additions to oil and gas interests (44,780) (32,299) (76,055)
Interest received on bank deposits 1,001 58 388
Decommissioning fund (1,697) (2) (2,162)
Interest collateral account (5,646) (998) (7)
------------------ ------------------ ------------------
Net cash used in investing activities (51,122) (33,241) (77,836)
------------------ ------------------ ------------------
Financing activities
Proceeds from issue of equity share 165,964 99 103
capital
Share issue expenses (9,739) - -
Debt repayments (40,500) (1,700) (1,700)
Interest paid (3,423) (3,697) (7,673)
------------------ ------------------ ------------------
Net cash provided by (used in)
financing activities 112,302 (5,298) (9,270)
------------------ ------------------ ------------------
Net increase / (decrease) in cash and
cash equivalents 148,217 (15,174) (14,942)
Cash and cash equivalents at the 7
beginning of the period 34,097 49,039 49,039
--------------------- --------------------- ---------------------
Cash and cash equivalents at the end 7,12
of the period 182,314 33,865 34,097
========= ========= =========



NOTES TO THE INTERIM RESULTS


(1) Basis of preparation


The interim financial statements of Dragon Oil Plc and its subsidiary
undertakings (together " Dragon" ) are incorporated in Dragon's consolidated
interim condensed financial statements. These are prepared in accordance with
International Accounting Standard 34 'Interim Financial Reporting'.The
financial information presented in this Interim Report has been prepared in
accordance with Dragon's accounting policies under International Financial
Reporting Standards (" IFRS" ). The transition date for implementation of IFRS by
Dragon was 1 January 2004. The financial statements for the six months ended 30
June 2004 and for the year ended 31 December 2004, which were prepared in
accordance with accounting practice generally accepted in the Republic of
Ireland, have been restated under IFRS with effect from the transition date. The
next annual financial statements of the group will be prepared in accordance
with accounting standards adopted for use in the European Union.


Approved IFRS


Dragon's accounting policies under IFRS are based on the Financial Reporting
Standards and Interpretations issued by the International Accounting Standards
Board (" IASB" ) and on International Accounting Standards (" IAS" ) and Standing
Interpretations Committee Interpretations approved by the predecessor
International Accounting Standards Committee that have been subsequently
authorised by the IASB and remain in effect.


The majority of the IASs / IFRSs have been approved by the European Commission.
However, a number of IASs / IFRSs remain to be approved at the date of
publication of this document, and failure to approve these outstanding standards
in time for 2005 financial reporting could lead to changes in the basis of
accounting or in the basis of presentation of certain financial information from
that adopted for the purposes of this Interim report.


Furthermore, the financial information provided in this document is subject to
the issuance by the International Accounting Standards Board of additional
Interpretations prior to the end of 2005 which may have retrospective impact and
thus require to be applied in the 2005 financial statements and the related 2004
comparatives. As a result, it is possible that further changes may be required
to the full year 2004 financial information contained in this document prior to
its inclusion as comparative data in the published 2005 year-end consolidated
financial statements under IFRS.


Accounting policies


The accounting policies used are consistent with those set out in the audited
Annual Report for the year ended 31 December 2004 which is available on Dragon's
website www.dragonoil.com/, except for the following:

* As part of Dragon's adoption of IFRS, an election was made under IFRS
1 First-time Adoption of International Financial Reporting Standards as at 1
January 2004 in respect of IFRS 2 Share - Based Payment that has only been
applied to options issued after 7 November 2002 and not vested by 1 January
2005.

* Cash and cash equivalents comprise cash on hand together with demand
deposits. Deposits repayable on demand are defined as short-term, highly liquid
investments that are readily convertible to known amounts of cash and which are
subject to an insignificant risk of changes in value.


(2) All trading activity arose from a single class of business, crude oil
sales and related activities in Central Asia. Accordingly, no segmental
information is provided.


(3) Dragon's share of proven and probable oil reserves, at 30 June 2005
is 292 million barrels (2004: 315 million barrels) of total field reserves of
658 million barrels (2004: 661 million barrels). In arriving at Dragon's share
of reserves and, consequently, the depletion charge, significant assumptions
have been made in the following areas and any material change to the underlying
assumptions will have a material effect on Dragon's share of oil reserves and
therefore the annual depletion charge:

* management's long term view of the crude oil price for the next 30
years;

* timing of the capital expenditure spend;

* crude oil production profile for the next 30 years; and

* cost estimates for capital and non-capital expenditure and production
costs.


Effective from 1 January 2005, Dragon revised its long-term view of oil prices
from US$25 per barrel to US$30 per barrel. The effect of an upward revision in
the long-term oil price is to lower the number of attributable reserves to
Dragon and this consequently increases the depletion charge per barrel. This
revision has resulted in the increase in depletion charge for the period by US$1
million.


(4) The Directors do not recommend the payment of a dividend in respect
of the six months ended 30 June 2005 (2004: nil).


(5) The calculation of basic earnings per ordinary share is based on the
weighted average number of 432,535,574 ordinary shares in issue during the six
months to 30 June 2005 (1H 2004: 404,013,422) and on the profit for the period
of US$49.6 million (1H 2004: Profit of US$15.3 million).


Calculation of fully diluted earnings per ordinary share is based on the diluted
number of 439,745,015 ordinary shares in issue during the six months to 30 June
2005 (1H 2004: 408,495,662) and is adjusted to assume conversion of all
potential dilutive options over ordinary shares.


(6) Reconciliation of profit before tax to cash generated from operations


6 months ended 6 months ended Year ended
30 June 2005 30 June 2004 31 Dec 2004
US$'000 US$'000 US$'000

Profit on ordinary activities before 71,413 15,274 49,745
taxation
Adjustments for:
Depletion and depreciation 15,640 5,374 16,717
Provision for slow moving inventories 1,900 - 379
Fair valuation of options 283 - -
Other income (2,347) - -
Write down of oil derivative put option - 779 -
Interest received on bank deposits (1,001) (58) (388)
Interest expense and loan issue costs 3,438 3,530 7,314
------------------- ------------------- -------------------
Operating cash flow before changes in 89,326 24,899 73,767
working capital
Changes in working capital
-inventories before movement in provision 354 (4,432) (9,184)

-trade and other receivables (4,255) (227) 205
-trade and other payables 1,612 3,125 7,376
------------------- ------------------- -------------------
Cash generated from operations 87,037 23,365 72,164
========= ========= =========


(7) Cash at bank and in hand


30 June 2005 30 June 2004 31 Dec 2004
US$'000 US$'000 US$'000

Cash at bank and in hand 194,997 38,029 39,437
Less: Decommissioning fund (6,224) (3,356) (4,527)
Less: Interest collateral account (6,459) (808) (813)
------------------- ----------------- -----------------
Cash and cash equivalents 182,314 33,865 34,097
========= ======== ========


Included in cash at bank are term deposits of US$ 116.2 million (2004: US$1
million). Term deposits represent interest bearing deposits with a maturity of
less than three months. Amounts held in the decommissioning fund reflects
Dragon's contractual obligations under the PSA to set aside specific amounts for
decommissioning activities and the interest collateral account relates to the
amount that Dragon is required to maintain in order to meet the interest
obligations under the terms of the EBRD facility.


The recoverability of amounts recorded as assets for oil and gas interests is
dependent upon the satisfactory completion of the development of the oil
reserves in Turkmenistan. In May 2005, Dragon issued 99,564,661 ordinary shares
of Euro 0.10 at Stg 88p per share pursuant to a private placing and open offer.
Costs associated with the issue of these shares were US$9.7 million. ENOC has
subscribed fully to its entitlement of 23,849,866 ordinary shares of Euro 0.10
each under the open offer, the proceeds of which were utilised to repay the
existing loan of US$40 million due to ENOC.


(8) The EBRD loan facility has a term of 7 years commencing from 29
December 2000. This loan is secured in favour of EBRD by the pledge of the
shares of the following subsidiaries of Dragon Oil Plc: Dragon (Holdings) Ltd.,
Tampimex Oil Trading Ltd., D&M Drilling Ltd. and Dragon Oil (Turkmenistan) Ltd.
These subsidiaries own substantially all the assets of Dragon. Dragon's rights
and benefits under certain agreements, in particular the PSA, have also been
assigned to EBRD and this loan agreement includes certain other conditions and
covenants.


There were no further drawdowns during the period under the EBRD loan facility.
During the period, US$0.5 million was repaid in February 2005 following the
seventh borrowing base review. Subsequent to the period-end, an amount of
US$5.4 million was repaid in August 2005, and a further amount of US$5.4 million
is due to be repaid in February 2006 under the terms of the loan facility. These
amounts are accordingly reclassified at the period-end as amounts falling due
within one year.


The net proceeds of the loan at 30 June 2005 were US$32.1 million after
deducting financing costs of US$0.9 million. Interest is charged on outstanding
amounts at LIBOR plus 325 basis points.


(9) Dragon has recognised an estimated net deferred tax liability of
US$21.9 million due to the timing differences between the charges to the income
statement and those computed under the tax laws of Turkmenistan.


(10) During the period, Dragon has issued an irrevocable stand-by
letter of credit in favour of the jack-up rig contractor in an amount of US$2.5
million as security for payments in connection with rental of the jack-up rig
and relevant equipment and services under the contract. The stand-by letter of
credit is valid until 14 May 2007.


(11) In May 2005, the Company issued 99,564,661 ordinary shares of Euro
0.10 at Stg 88p per share pursuant to a private placing and open offer. Costs
associated with the issue of these shares were US$ 9.7 million. ENOC has
subscribed fully to its entitlement of 23,849,866 ordinary shares of Euro 0.10
each under the open offer, the proceeds of which were utilised to repay the
existing loan of US$40 million due to ENOC. The Company also issued 210,000
ordinary shares of Euro 0.10 each pursuant to the exercise of share options
during the period. The shares issued during the period resulted in an increase
of US$12.9 million and US$143.3 million (net of costs) in Equity Share Capital
and Share Premium account respectively.


(12) Dragon reported under Irish GAAP in its previously published
financial statements for the year ended 31 December 2004. There were no
differences noted in the net assets and profit as reported under Irish GAAP as
at 30 June 2004 and 31 December 2004 to the revised net assets and profit under
IFRS as reported in these financial statements.


The main IFRS transition effect presented by Dragon in its statement of cash
flow for the six months ended 30 June 2004 and 31 December 2004 is that cash and
cash equivalents under Irish GAAP included term deposits with a maturity period
of not more than 24 hours. Under IFRS, term deposits with the original maturity
period of three months or less, totalling US$15.2 million and US$0.3 million
respectively are considered as cash and cash equivalent.


Independent review report to Dragon Oil plc


Introduction

We have been instructed by the company to review the financial information for
the six months ended 30 June 2005 which comprises consolidated interim balance
sheet as at 30 June 2005 and the related consolidated interim statements of
income, cash flows and changes in shareholders' equity for the six months then
ended and related notes. We have read the other information contained in the
interim report and considered whether it contains any apparent misstatements or
material inconsistencies with the financial information.


Directors' responsibilities

The interim report, including the financial information contained therein, is
the responsibility of, and has been approved by the directors. The directors are
responsible for preparing the interim report in accordance with the Listing
Rules of the Irish Stock Exchange.


As disclosed in note (1) the next annual financial statements of the group will
be prepared in accordance with accounting standards adopted for use in the
European Union. This interim report has been prepared in accordance with
International Accounting Standard 34, 'Interim financial reporting'.


The accounting policies are consistent with those that the directors intend to
use in the next annual financial statements. This interim financial information
has been prepared in accordance with those IFRS standards and IFRIC
interpretations issued and effective or issued and early adopted as at the time
of preparing this information (September 2005). The IFRS standards and IFRIC
interpretations that will be applicable and adopted for use in the European
Union at 31 December 2005, are not known with certainty at the time of preparing
this interim financial information.


Review work performed

We conducted our review in accordance with guidance contained in Bulletin 1999/4
issued by the Auditing Practices Board for use in the Republic of Ireland. A
review consists principally of making enquiries of group management and applying
analytical procedures to the financial information and underlying financial data
and, based thereon, assessing whether the disclosed accounting policies have
been applied. A review excludes audit procedures such as tests of controls and
verification of assets, liabilities and transactions. It is substantially less
in scope than an audit and therefore provides a lower level of assurance.
Accordingly we do not express an audit opinion on the financial information.
This report, including the conclusion, has been prepared for and only for the
company for the purpose of the Listing Rules of the Irish Stock Exchange and for
no other purpose. We do not, in producing this report, accept or assume
responsibility for any other purpose or to any other person to whom this report
is shown or into whose hands it may come save where expressly agreed by our
prior consent in writing.


Review conclusion

On the basis of our review we are not aware of any material modifications that
should be made to the financial information as presented for the six months
ended 30 June 2005.



PricewaterhouseCoopers
Chartered Accountants
Dublin
26 September 2005


Notes:

(a) The maintenance and integrity of the Dragon Oil web site is the
responsibility of the directors; the work carried out by the auditors does not
involve consideration of these matters and, accordingly, the auditors accept no
responsibility for any changes that may have occurred to the interim report
since it was initially presented on the web site.

(b) Legislation in the Republic of Ireland governing the preparation and
dissemination of financial information may differ from legislation in other
jurisdictions.




This information is provided by RNS
The company news service from the London Stock Exchange
END

Share News for Dragon Oil (DGO)

Dragon Oil starts production at LAM 10

Wed, 12th Oct 2005, 14:21
LIFE STYLE EXTRA (UK) - Dragon Oil has started production at its LAM 10/111 well on the refurbished LAM 10 platform in the Cheleken Contract Area, offshore Turkmenistan.

The well tested oil from Zones 4, 5 and 6 at a combined rate of 2,586 barrels of oil per day, said Dragon.

Drilling will commence at the third well from the LAM 10 platform, well LAM 10/112, which is planned to be drilled to a total depth of around 3,600 metres.

Chairman Hussain Sultan said, "We are pleased with the result of well LAM 10/111 and with the successful application of dual completion technology. It is planned to use this technology on future wells."

sind auch sehr interessant!

According to company specialists, the construction of new wells may increase oil production 10-fold in the coming years. The company’s average daily output could reach 50,000 barrels from the current average daily output of over 20,000 barrels. Given these factors, the company has started to implement projects to expand pipelines through which oil is transported from the offshore fields to the coast as well as to storage facilities in which oil is prepared for transportation to Alaja port for further exporting. A 10-inch pipeline has been already built so far connecting Jeitun 22 (LAM 22) sea platform with Block-2.

Modernization of permanent offshore platforms at Jeitun (LAM) field is designed to ensure further drilling of wells with jack-up drilling rigs. In fact, until recently there were used Astra jack-up drilling rig rented from Lukoil company. At present, new wells are drilled with Iranian Khazar jack-up drilling rig.

A US $ 25-million investment project began at the start of the year to set up onshore infrastructure. The project contractor is Ukraine's Petrogaz which was chosen on a tender basis. The point is that the onshore infrastructure became obsolete and hardly handles processing greater volumes of raw materials. According to the project, the construction of reservoirs and pipelines, gas separation, oil dehydration and oil desalting units, semi-automatic control units is under way. Equipment and technologies for new infrastructure are shipped from Canada and Germany as well as a number of other European states. The project is to be completed by summer 2006. There are also plans to upgrade the existing oil shipping terminal. Alaja seaport was last reconstructed in 1994. It will serve two tankers at the same time in the near future.

In total, Dragon oil plans to invest some US $ 100 mln in drilling and modernizing onshore infrastructure on the Caspian Sea in 2005.

turkmenistan.ru/...d=en&elem_id=7221&type=event&sort=date_desc

A letter from JP Morgan Securities Ltd., 124 London Wall, London, EC2Y 5AJ, dated 16 September 2005 received by Dragon on 2 October 2005, addressed to Dragon Oil Plc.


On behalf of J.P. Morgan Chase & Co. ('JPMCC') of 270 Park Avenue, New York, NY 10017, we would like to advise that
JPMCC has increased its total aggregate holding in the share capital of Dragon Oil plc (to) 5.01%.

Total number of shares (% of share capital): 25,247,350 (5.01%).


For and on behalf of
JP Morgan Securities Ltd and J.P. Morgan Chase & Co.
Gapsun Rhee
EMEA Surveillance


This announcement has been issued through the Companies Announcement Service of The Irish Stock Exchange.

          §  

appraisers could not use a recovery ratio in excess of 25%. This means the Cheleken block
could have approximately 3bn bbls of original oil in place (OOIP), making it a world-class
reservoir by any standards.
We believe that with a water injection program ultimately in the offing, auditors could be
able to increase the recovery ratio used for estimating Dragon’s reserves to the industry
average of 30%-35%. This may significantly increase the recoverable reserves at the
Cheleken block.
We also note that a recent 3D seismic study has yet to be incorporated in the reservoir
appraisal. With little disclosure of the fields’ geology the impact of the 3D survey is
difficult to estimate; however, in the case of complicated fields (like the Cheleken block)
more detail tends to lead to positive changes in reservoir estimates.
The two fields also contain 3tcf (100bcm or 629mn boe) of “best estimate” gross
associated gas resources consisting of dissolved gas and free gas, which until now have
been ignored by the market. Recent high-level multi-party negotiations over gas shipments
from the Caspian east coast suggest the chances of Cheleken gas finding its way to the
international markets have increased significantly. We thus believe that Dragon’s gas
reserves deserve at least some valuation credit.
The Cheleken block has been under development since Soviet times (from the late 1960s
and early 1970s); however, the technological limitations of the period meant fields were
largely untapped. We estimate that only about 40mn bbls (less than 2% of estimated
original oil in place) were recovered before 1999, when Dragon Oil signed its 25-year
Production Sharing Agreement (PSA).
The reasons for the very low depletion are discussed in more detail below, but the
important point we want to emphasize here is that although its development began
roughly 35 years ago, the Cheleken field is effectively at the beginning of its life cycle.
The picture below clearly demonstrates the Cheleken block is not a mature field struggling
to maintain production and not even a rehabilitation play, but a young, world-class oil
reservoir with current reserve life just short of 80 years (on a gross basis).

Gas sales - net DGO output, bcm
2003 2004 2005F 2006F 2007F 2008F 2009F 2010F 2011F 2012F 2013F 2014F 2015F
0.0  0.0   0.0  0.0   0.6   0.6   0.7   0.8   0.9   1.1   1.2   1.3   1.4  

Dragon Oil ist in den letzten Tagen einer der wenigen Ölförderer am Kaspischen Meer, der wieder zulegen konnte. Da ich keine neuen Nachrichten finden konnte, gehe ich davon aus das die Erholung des kurses charttechnischer Natur ist.
Wobei ich Dragon Oil noch immer als den aussichtsreichsten Ölförderer in dieser Region ansehe, vor allem weil ein zweites Standbein mit der Gasförderung hinzu kommt.

Oil & Gas. Turkmenistan may open deep Caspian shelf to foreign investment; DGO, BUR may benefit
Turkmenistan's President Saparmurat Niyazov said today in an official statement that Turkmenistan may open to foreign investment the deep offshore blocks located in the Turkmen section of the Caspian Sea, as the country wants to step up its oil production in a period of record high oil prices.

While deep offshore projects will likely require very substantial capital expenditures that could well be above the financial capabilities of the two listed Turkmenistan-related plays, Dragon Oil and Burren Energy, we nonetheless expect Dragon and Burren to benefit from the upcoming auctions. The two companies' multi-year track records of successful operations in the country, together with good working relationships with the authorities and, in the case of Dragon, offshore experience, would likely make them very valuable JV partners to majors seeking to establish a foothold in the region or may enable them to bid independently for smaller offshore blocks.

We reiterate our Hold recommendations on DGO and BUR, though both companies stand to gain the most if future oil prices exceed our fairly conservative forecasts. Of the two, we particularly like Burren Energy due to its exploration upside in India and Egypt and spotless operating execution in 2004-2005.

Quelle: aton.ru

www.russia4u.de/14-2005_OG_outlook_Sep05_presentation_.pdf

Should you buy shares in Dragon Oil?
www.timesonline.co.uk/newspaper/0,,2769-1859030_1,00.html


DRAGON OIL has an unusual corporate structure for an Irish company listed on the Dublin and London stock exchanges. Its primary activity is the redevelopment of two oil fields in the Turkmenistan sector of the Caspian Sea. It is managed out of Dubai in the Middle East and its main shareholder is the Emirate National Oil Corporation (ENOC), which holds a 52% share.
The share is a member of the Iseq index and it has been a stellar performer on the back of a growing production profile and the surge in oil prices over the past year.
The two experts below have been selected for their skills in a number of investment areas. They, or the funds they manage, may hold shares in the companies or sectors discussed.
Job Langbroek, resource equity analyst, Davy
DRAGON OIL first became involved in Turkmenistan during the 1990s following the state’s move to independence. Enoc did not become involved in Dragon until 1999, when it bought its initial stake and provided working capital.
A large-scale refinancing was completed earlier this year, which resulted in an equity injection of $160m (€135m). This, together with growing production cash flow, provides the financial platform to develop the near 300m barrels of oil due to Dragon in the Lam and Zhadanov fields. A huge potential resource of gas, estimated at 3.5 trillion cubic feet, also remains to be exploited.
The plan is to grow total production to 40,000 barrels of oil per day by 2008. This compares with a little over 20,000 barrels of oil per day at present.
This is a redevelopment play, and increasing the level of oil production will depend on drilling enough new wells to drain the reserves in the field. New infrastructure, chiefly pipelines and oil/water/gas separation facilities, is therefore required. A well programme and new production facilities will account for the lion’s share of the $250m worth of planned investment in the next two years.
At current oil prices, Dragon’s business is hugely profitable. We are forecasting after-tax profits of about $120m for the current year and $145m for 2006. It is possible the group could, at least this year, comfortably exceed this projected performance.
As a single-asset play with a defined field life, Dragon lends itself to discounted cash-flow analysis. Our work suggests that the market is using an oil price of between $40 and $50 per barrel to value the group. Increasing production beyond a rate of 40,000 barrels of oil per day, which we believe is likely, will accelerate cash flows and further increase the value of the group.
Risks are largely centred on geography and, as an oil producer, lower oil prices will mean lower cash flows and value to shareholders. However, trading at a discount to current oil prices provides a comfort zone and the gas resource is mouth-watering.
Judgment: looks good value at the current share price
Kevin McConnell, head of research, Bloxham Stockbrokers
DRAGON OIL has been the best performing stock on the Iseq over the past year, gaining more than 220%. Yet, since oil peaked at $70 (€59) a barrel in late August, shares in the company have fallen back 23%, demonstrating the company’s high correlation to the oil price and the risky nature of oil exploration stocks.
The $160m of funding raised in May radically reduced the financial uncertainty surrounding the group’s future.
Over the next two years, Dragon intends to invest about $250m, ensuring it maximises its reserve capacity by producing 40,000 barrels of oil per day by 2008 or earlier, double its current capacity. It is estimated that the group has reserves of up to 600m barrels and a sizeable quantity of gas, which has yet to be explored and is not valued in the current share price.
Dragon’s takeover potential has been well publicised of late, with reports linking OAO Lukoil, Russia’s largest oil producer, and the China National Petroleum Corporation (CNPC) to the company. The 52% share owned by Enoc entitles it to block any potential deal and the group has stated publicly that it has no plans to sell its stake.
The decision to switch to medium-term oil price hedging is proving highly beneficial. Not only does it reduce exposure to a volatile oil price, but it improves credit profile and provides future financial stability.
Dragon trades on a forward 2005 price/earnings multiple of 8.2 times, a 40% discount to the sector average. Even taking into account the risks associated with this single-asset company, the discount seems unwarranted and may not fully reflect the group’s growth prospects.
Overall, we believe Dragon needs to reduce its risk profile by diversifying into areas that are politically stable. Ultimately, Dragon is a speculative stock, but if the group can execute its goals and diversify its portfolio, there could be further upside for risk-seeking investors. However, any investment should be viewed in the context of an investor’s current portfolio, assessing the additional stock-specific risk that Dragon would add.
Judgment: speculative buy
Market cap: €1.21bn

Year end: December 05
EPS forecast: 25.9c
Dividend forecast: nil


The Firm at a Glance
Share price: 239c

grassi.siteboard.de/grassi-about29.html

An up-to-date seismic data base was obtained, which helped supply the Turkmen government with the most accurate information on oil and gas reserves. For the first time, data on deep-occurring geological boundaries was obtained, which served as the critical technical basis for evaluation and classification of hydrocarbon potential as well as for identifying further strategies for raising foreign investment in the oil and gas exploration and production projects.

As a result of processing the earth science data, an undertaking in which Turkmen staff and Western Geco experts participated, an assessment was made of possible and future hydrocarbon resources of the Turkmenistan Caspian sector. They are estimated to be 11 billion tons of oil and 5.5 trillion cubic meters of gas. In other words, more than half of oil reserves and around 25 percent (one quarter) of Turkmenistan’s natural gas reserves are concentrated in the Turkmenistan sector of the Caspian Sea.

Within the Turkmen Caspian sector, two major oil-and-gas-bearing basins have been identified on the basis of specific geological features, namely Middle Caspian and South Caspian, divided by a transition zone.

Middle Caspian oil and Gas Basin is relatively less studied with geological and geophysical methods and has potential for oil and gas in Mesozoic and Paleozoic formations. Near the Turan Plate fringes, an area has been identified which became known as an “onlap / pinch-out trap zone”.

Based on the unique features of how oil and gas traps were formed within the studies area, the following oil and gas accumulation zones have been revealed in this region.

Interpretation of the seismic data indicates that the potential of the Middle Caspian is likely associated with carbonate reservoirs that settled on the edge of the continental shelf, rather than with structural traps of terrigenous rocks.

A number of prospects such as Charlak, Garadashlyk and Ak-Deniz are examples of possible reef structures in the Miocene cross-section within a shallow-water area of the Turan Plate.

Within the transition zone, inversion depressions and the Khazar-Osman Swell have been identified, their potential predominantly linked to Cenozoic deposits.

The Apsheron-Khazar Swell was interpreted as a boundary of continental crust of the Scythian-Turan Plate and oceanic crust of the South Caspian Basin.

The Khazar-Osman zone has been indicated to be confined to clayey diapir uplift. This area is characterized by multiple trusts associated with re-activation of more ancient normal folds and further clay diaprism. The diapir uplift and thrusts stretch from northwest toward southeast.

The geosynclinal South Caspian oil and gas Basin is characterized by a great diversity of highly potential zones, primarily in Neogena sequences. As of today, the best explored areas include: the Ogurdzhaly-Bilal Val (Swell), the Western zone of diapirs, the delta complex, the zone of clayey upwarps, the Southern zone of clayey diapirs.

In the northern areas of the Southern Caspian, seismic studies revealed the NW-SE Ogurzhaly-Bilal Swell. The 2005 recommendations include assessment of prospective hydrocarbon resources within the confined anticlinal traps of the swell.

Blocks 18, 19, 20, 21, 22 and the marginal north-eastern sections of blocks 27, 28, 29, 30, 31 are believed to be highly prospective in terms of potential identification of stratigraphic oil and gas traps in the paleodelta complex.

Seismic data from the western section of the Ogurdzhaly prospect has revealed clustered channels and a hilly pattern of the peleodelta complex in the upper-redstone cross-section.

North-eastern sections of blocks 26, 27, 28, 29, 30 and 31 tectonically lie within the zone of clayey upwarps. Here, shifting clay, scoop-shaped fractures and related bending structures are found.

The northern section of block 24 tectonically lies in the western zone of diapirs. Here, large structural uplifts are located, which are linked to tectonic disturbances and are complicated by clay dipirism under excess pressure.

South-western sections of blocks 25, 26, 27, 28 and 29 tectonically occur in the southern zone of clayey diapirs. Here, unexplored traps closed along dips and fractures are located, stretching from west-north-west to east-south-east. Clay diapirism suggests the presence of highly abnormal pressures.

In conclusion of this geological overview, I would like to point out that the consistent patterns of the location of oil and gas deposits, established on both land and sea areas of the Middle Caspian and South Caspian oil and gas basins, as well as the latest geological and geophysical data, make it possible to highly assess the above oil and gas accumulation zones in terms of the potential of large oil and gas discoveries.

In this regard, I would like to briefly dwell on thee results of oil operations of foreign oil companies that operate under the Production Sharing Agreements within four prospective blocks.

Dragon Oil
This year, Dragon Oil is to produce in this block more than 900000 tons of oil. The share of offshore production in nationwide total oil production has reached 6.4%.

In 2004, a new stationary platform, LAM-21, was commissioned. This year, two wells were successfully drilled – Dzheitun 10/110 and 10/111. Both wells were drilled using a directional drilling technique. These wells are currently under operation and are developed in three productive horizons of the redstone formation. The use of new equipment and technology by the company enabled it to obtain daily flow rates of oil from the new wells ranging between 400 tons and 600 tons.

In 2006, the company expects to drill and bring on-stream another eight new wells. Also, drilling of one appraisal well, West-A is expected at the Dzheitun field, which is hoped to deliver an increase in oil reserves in this field.

Dragon Oil is significantly expanding its prospecting operational area. This year, PetroAlliance Services Ltd. completed a 3D swidmic survey aiming to identify optimum drilling locations for potential new wells. The study area covered 652 square kilometers. Furthermore, during this work, seismic data were gathered using an ocean bottom cable drawn across the Dzheitun and Dzhygalibeg fields. The maximum design study depth was 6 kilometers below the seabed surface. Seismic data interpretation is performed by France’s CGS (Companie Generale de Geophysique). The scope of investments Dragon Oil has earmarked for the contractual acreage in 2006 is estimated at US $ 280 million.

In 2010, Dragon Oil hopes to bring up the annual production rate to 2.5 million tons of oil.

Petronas
Petronas has drilled seven wells in its offshore prospect; all of them have yielded commercial inflows of oil, gas and condensate. Daily oil flow rates in the wells vary from 600 tons to 2000 tons.

As my esteemed colleagues know, Petronas has conducted a set of geological and geophysical studies, including 2D and 3D seismic surveys, as well as drilling exploration and appraisal wells. The results of these operations have helped significantly expand the field productivity range in terms of both the surface area and downhole operations.

In order to ascertain reserve calculations for Block 1provided by Petronas, a contract was made with Gafney Klein for an expert review of the identified hydrocarbon reserves.

During this year, Petronas put in significant efforts to prepare the contract area for pilot commercial operation of the oil and gas fields. A Mobile Offshore Production Unit (MOPU) and an Offshore Oil Storage facility were constructed. At present, they have been delivered to the Caspian Sea and are being installed at the production site.

This year, the company began construction of an onshore gas terminal at Gyyanly and sections of a self-mounted production platform in Malaysia.

Petronas expects to launch a full-scale development of the oil/gas/condensate fields in its block in late 2007.

Maersk Oil
A turning point in the history of development of Turkmenistan’s oil and gas resources came with the signing of a Production Sharing Agreement on the unified block 11-12. The critical significance of this event is in the fact that for the first time ever, oil and gas prospecting operations were taken to the Middle Caspian oil and gas basin, an area of huge oil and gas potential associated with three prospective oil and gas bearing complexes: Paleozoic, Mesozoic and Cenozoic. The Cenozoic complex is confined to southern sections of the offshore blocks 11-12 at the junction with the South Caspian mega-depression and is also characterized by favourable conditions for potential discoveries of oil and gas deposits of lithologo-stratigraphic type.

Project operator here is the Danish company Maersk Oil. Today, 2D seismic studies have been completed, which yielded a total of 5070 linear kilometers of seismic profiles. As a result of seismic data interpretation, large oil and gas traps were revealed, and the Garadashlyk prospect was identified as the top priority for construction of a prospecting well. The well design depth is 3900 meters. Sea depths range between 20 meters and 80 meters. Drilling of the well is ongoing as we speak.

Wintershall
Wintershall signed an agreement with the Turkmenistan ministry of oil and gas industry and mineral resources for study of northern blocks within the Turkmenistan sector of the Caspian Sea in order to determine the most promising potential oil and gas accumulation zones. As a next step, the company hopes to sign a production sharing agreement for one of the offshore blocks.


Licensing of the offshore projects on the basis of direct negotiations is continuing. At present, we are negotiating production sharing agreements with several companies for six blocks in the Turkmen Caspian sector.

By 2020, the share of investments in offshore project development is to reach 40% of total investments in the oil and gas sector, which have been planned at US $ 63 billion.

Dear Colleagues! A number of significant steps have been taken in the country in order to sustain national environmental safety, which is one of the topmost priorities of the national policy. “While engaging in economic activity, using natural resources, we must always remember that environmental systems are highly vulnerable, and without a caring attitude toward them, future generations would have to make much greater efforts and spend more resources for their production.” These words by Turkmenistan’s President Saparmurat Niyazov Turkmenbashy the Great express the gist of Turkmenistan’s environmental practices, which combine aspects and factors that originate from both national interests and international obligations of our country. Turkmenistan remains true to the principles of active participation in environmental protection and preservation programmes, preventing ecological anomalies on both the national global levels. The country has developed and implemented a number of regulations and laws, such as “On Environmental Protection”, “On Subsoil”, “On Hydrocarbon Resources”, and the National Caspian Sea Oil Spill Prevention and Response Plan.

Turkmenistan has enthusiastically cooperated with Caspian littoral nations under the jointly-developed Framework Convention for protection of the offshore environment of the Caspian Sea. Adopting this crucial environmental protection document was a real step that responded to the letter and spirit of international approaches to addressing the paramount environmental challenges faced by the Caspian., Turkmenistan was one of the first Caspian states to ratify this document.

In step with the concept of sustainable development and principles of international cooperation, the further strategy of our government is based on attracting foreign companies that use state-of-the-art, environmentally safe technology that meets international standards.

I would like to conclude by saying that further details on the offshore blocks to be licensed in the Turkmenistan sector of the Caspian Sea are available from the ministry of oil and gas and mineral resources, which is Turkmenistan’s competent authority in negotiations with foreign investors under production sharing agreements. The ministry will provide you with all the necessary legislation and technical data. The technical data is presented as data packages with varying sets of contents of geological, geophysical and technical information.

Thank you and I wish you all the best.

www.newscentralasia.com/modules.php?name=News&file=ar...

Kazakhstan-China oil pipeline completed

Eric Watkins
Senior Correspondent

LOS ANGELES, Nov 15 -- China National Petroleum Corp. and Kazakhstan's National Petroleum & Natural Gas Co. have completed construction of the 1,000-km Atasu-Alashankou oil pipeline.

The new line, which extends from Atasu in Kazakhstan's central Karaganda region through the Alashankou rail crossing with China's western province of Xinjiang, is designed to carry 140 million bbl/year of crude from Kazakhstan to China starting Jan. 1, 2006.

In October, Kazakh Prime Minister Danial Akhmetov said the Atasu-Alashankou pipeline also could be used by Russian oil companies.

Russian state-owned oil company Rosneft, which currently transports oil to China by rail, has applied for permission to transport 1.2 million tonnes of oil via the Kazakhstan-China pipeline in 2006. OAO Lukoil also is said to have shown interest in the pipeline.

Meanwhile, Chinese state media said the Altaw Pass, where the final link in the pipeline was completed, is expected to become a hub for railway, road, and pipeline networks for the remote region in China's northwest.

ogj.pennnet.com/articles/...NART&C=Trasp&ARTICLE_ID=241570&p=7

Work on TAP gas pipeline starts next year


ASHGABAT, Nov 10: The construction of a proposed gas pipeline from Turkmenistan to Pakistan across Afghanistan will start next year, despite continuing unrest in the region, an Afghan minister said on Thursday.

“January, in my opinion, will see the last meeting to found a consortium for the TAP (Turkmenistan-Afghanistan-Pakistan pipeline),” Afghan Minister for Mines and Industries Mir Mohammad Sadiq told Reuters in an interview.

Mr Sadiq said work would then start on a project that he estimated would cost $3.6 billion. He gave no estimate for a completion date for the pipeline or details on financing plans or likely consortium members.

The long-delayed project envisages a pipeline running 1,600 km and providing Turkmenistan with a new outlet for its gas, Afghanistan with transit revenue and Pakistan with much-needed energy.

Afghan President Khamid Karzai said last month that the project was “very real and feasible”.

Mr Sadiq said the planned pipeline would have enough gas supplies to run for 20 years at a rate of 30 billion cubic metres of gas annually. The line could be extended to India.

While concerns remain over security in Afghanistan, questions have also been asked about the size of Turkmenistan’s Daulatabad gas field slated to feed the pipeline with the fuel. The Asian Development Bank has said reserves information from Turkmenistan shows a lower-than-expected gas deliverability there.

“Turkmenistan’s reserves in Daulatabad are more than needed for Pakistan and India,” Mr Sadiq said. “The volume ... is enough for 20 years.”

Turkmenistan, which currently ships the bulk of its gas exports to Ukraine via a pipeline controlled by Russian gas giant Gazprom, says Daulatabad holds 1.7 trillion cubic metres of gas which makes it the world’s fourth largest.

It is still unclear who will form the pipeline consortium. Mr Sadiq said the ADB was providing results of Daulatabad’s international audit to all those interested in the project.—Reuters

www.dawn.com/2005/11/11/ebr9.htm

dürfte durch die erheblichen Gasreserven ein großer Profiteur dieses Vertrages sein sein.

Turkmenistan, China to Sign Gas Deal

Central Asia's Turkmenistan will sign a major agreement next year to sell natural gas to China and jointly develop Turkmen gas fields, President Saparmurat Niyazov said Wednesday.
China is increasingly looking abroad to secure reliable oil and gas supplies for its booming economy. Turkmenistan, a largely desert nation, has huge natural gas reserves and is the second-largest gas producer in the former Soviet Union after Russia.
Niyazov said the deal, expected to be signed during his visit to China early next year, would involve building a gas pipeline to China from eastern Turkmenistan, where the fields planned for joint extraction are located.
The pipeline will be able to carry 30 billion cubic meters (1 trillion cubic feet) of natural gas a year, Niyazov told a meeting of transport officials from former Soviet republics in the capital Ashgabat.
The financial terms of the agreement were not disclosed.
In July, Turkmenistan and China signed an agreement on oil and gas cooperation and China extended a $24 million low-interest loan to Turkmenistan for the development of its oil and gas industry.
Wednesday's announcement comes days after Niyazov warned Russia and Ukraine that Turkmenistan can do without their markets if they do not agree to pay more for gas supplies. The country, citing increased production costs and higher costs of gas extraction equipment, is seeking to boost its prices for natural gas exports by about 35 percent.
Ukraine relies on Turkmenistan for about 45 percent of its natural gas needs, and was planning to buy about 39 billion cubic meters in 2006. Russia was expected to buy about 7 billion cubic meters and Iran 8 billion.

www.washingtonpost.com/wp-dyn/content/.../AR2005112300381.html

Turkmenistan offers to export gas to Germany
          §MENAFN - 25/11/2005

(MENAFN) Turkmenistan's president told German businessmen that his country could export natural gas to Germany but only if Russia approved, AP reported.

According to Turkmen television the president told the visiting delegation that Turkmenistan could export up to 30 billion cubic meters (1,059 billion cubic feet) of gas to Western Europe via the "Central Asia-Center" pipeline going from Turkmenistan to Russia.

Currently, most of Germany's -- and Europe's -- gas imports go through pipelines traversing Poland and Belarus or Ukraine, Slovakia and the Czech Republic. Russia supplies a third of Germany's gas and a quarter of Europe's.

www.menafn.com/qn_news_story_s.asp?StoryId=115631

hochgestuft. Seit der Herabstufung im September hatte Dragon Oil eine schlechtere Performance im Vergleich zu anderen russischen Ölförderen.

Dragon Oil hat sehr gute Wachstumsaussichten, vor allem im Gassektor. Als einzigstes Unternehmen verfügt es über enorme Gasreserven, bei den anderen Ölförderen am Kaspischen Meer sind es nur geringe Gasvorkommen, die in den Ölreserven mit eingerechnet sind. Meistens fällt es als "Abfallprodukt" bei der Ölförderung an, das in der Vergangenheit abgefackelt wurde und in der jüngsten Zeit ebenfals verkauft wird.
Dragon Oil investiert einige 100 mio in die Erschliessung der Gasfelder, die sie aber aus dem laufenden Gewinn finanzieren wollen.

In 2006 will die Ukraine 39 millarden m³, Russland 7 millarden m³ und der Iran 8 millarden m³ abnehmen.
Turkmenistan will über Russland nach Westeuropa Gas liefern, hat ein Abkommen mit China abgeschlossen incl. dem Bau einer Gaspipeline, ab 2006 wird die Gaspipeline nach Pakistan und Inden gebaut.


Aton zum Ölpreis und Dragon Oil:

We have upgraded our long-term oil price forecast from $35/bbl Brent to $40/bbl Brent to bring it in line with the global consensus, which now appears to include authoritative industry organizations (IEA), oil super-majors (BP) and leading global commodity research teams. $40/bbl Brent is also in line with the trailing price over the last three years. Our long-term price forecasts for export gas prices as well as export and domestic refined product prices were also revised higher. Our near-term forecasts – $55/bbl Brent in 2005 and $50/bbl in 2006 – were left intact. Following these changes, we have revised higher the target prices for most of the companies we cover.

Dragon Oil – Upgraded to Buy from Hold. The stock has underperformed Russian oils and Burren Energy since our downgrade in September, but strong leverage to oil prices and a solid production growth outlook make the stock seem attractive at current levels. At an ’06F EBITDA multiple of 4X and P/E of 7, the stock looks very attractively priced; our DCF-based target of $3.8 suggests 40% upside.

in Takt. Durch die Wachstumsaussichten, weiterhin positiven News, Heraufstufung von Aton auf buy und einigen anderen Analysten auf ein spekulatives buy, wird in 2006 der Aufwärtstrend weitergehen.  

In 2006, the Russian gas giant “GasProm” will increase gas purchases in Turkmenistan, Uzbekistan and Kazakhstan up to almost 26 billion cubic/metres. The company’s representatives say that today Central Asian gas appears to be an important element in forming a widespread resource base of “GasProm”, meeting the requirements of the domestic market of Russia, the CIS countries and far abroad. Today the Russians jointly with the Central Asian states are realizing a program on the restoration and expansion of the gas-transport system Central Asia –Centre. Specialists think that the realization of the project will allow “GasProm” to increase volumes of long-term natural gas deliveries from the Central-Asian region.
02.12.2005 11:43

www.caspionet.kz/index.cfm?id=6385

(#13) auf 6,3 % !


Dragon Oil Plc ('Dragon' or the 'Company')

Holding in Company

A letter from JP Morgan Securities Ltd., 125 London Wall, London, EC2Y 5AJ,
dated 29th November 2005 received by Dragon on 11th December 2005, addressed to
Dragon Oil Plc.

On behalf of J.P. Morgan Chase & Co. ('JPMCC') of 270 Park Avenue, New York, NY
10017, we would like to advise that JPMCC has increased its total aggregate
holding in the share capital of Dragon Oil plc (to) 6.30%.

Total number of shares (% of share capital): 32,098,512 (6.30%).

For and on behalf of

JP Morgan Securities Ltd and J.P. Morgan Chase & Co.

Dragon Oil Plc ("Dragon" or the "Company")

Holding in Company

A letter from Julius Baer Investment Management LLC of 330 Madison Avenue, New York, NY 10017, dated 19th December 2005 received by Dragon on 20th December 2005, addressed to Dragon Oil Plc.

Julius Baer Investment Management LLC advises that it has increased its holding in the issued share capital of Dragon Oil plc to 6.79%.

Total number of shares : 34,603,218

For and on behalf of

Julius Baer Investment Management LLC

Donald Delano

Chief Compliance Officer

www.londonstockexchange.com/LSECWS/...px?id=1129198&source=RNS

Dragon Oil Pleased with Results at LAM 10 Platform    
          §Dragon Oil      Wednesday, December 28, 2005


Dragon reports that well LAM 10/112 drilled from the refurbished LAM 10 platform in the Cheleken Contract Area, offshore Turkmenistan, has tested oil from Zones 4, 5 and 6 at a combined rate of 2,950 barrels of oil per day.

Well LAM10/112 was spudded on October 14, 2005 and drilled to a total depth of 3,629 meters in reservoir Zone 7. The well was successfully completed using a dual completion which enables two reservoir intervals, at different reservoir pressures, to be produced simultaneously.

          §Related Products

Drilling Technology for the Man on the Rig

Drill String Design Handbook
Reservoir Zones 5 (lower part) and 6 were produced through the lower completion string and tested at a rate of 2,087 bopd. The upper part of reservoir Zone 5 and Zone 4 was produced through the upper completion string and tested at a rate of 863 bopd. Both intervals will be produced together.

The Iran Khazar jackup has been skidded to commence drilling the fourth well from the LAM 10 platform, well LAM 10/113. This well is planned to be drilled to a total depth of around 3,700 meters.

Hussain M. Sultan, Chairman of Dragon commented: "We are pleased with the result of well LAM 10/112 which was drilled using dual completion technology."

www.rigzone.com/news/article.asp?a_id=28118

Ashgabat, 29 December 2005 (nCa) --- Turkmenistan agreed Thursday to sell 30 billion cubic meters (bcm) of natural gas to Russian Gazprom in 2006. The gas would be sold at US $ 65 per 1000 cubic meters -- five dollars more than the initial asking price of Turkmenistan.

Of the committed volumes, 15 bcm would be pumped during the first quarter of 2006.

The agreement was signed during a meeting between President Niyazov and Alexi Miller, chairman of Gazprom.

A press release by the foreign office of Turkmenistan says that both sides hailed the contract as an important document for not only successful partnership in the gas sphere between the two countries but also as a whole for the Turkmen-Russian relations.

According to initial reports Russia was planning to buy 7 bcm from Turkmenistan in 2006. The sudden jump in volumes may suggest that, unless the demand has risen correspondingly from the European buyers, Gazprom could be planning to resell the additional volumes to Ukraine at a price that has still not been agreed to between Russia and Ukraine.

There is, as yet, no news about the pending gas purchase agreement between Ukraine and Turkmenistan for 2006.



Turkmenistan plans to raise the price for its gas deliveries  
to Gazprom (Rusukrenergo) to $85 per 1,000 cubic meters in 2H06 from the $65 level contracted for 1H06. That might further complicate realization of the recently signed agreement between Russia and Ukraine, under which Rosukrenergo is obliged to supply Ukraine with gas at $95 per 1,000 cubic meters at the Russian-Ukrainian border.

Sollte sich der Ölpreis weiterhin im Bereich von 70$ bewegen, werden neue Jahreshochs folgen. Solange keine Einigung mit dem Iran in Sicht ist und der Winter anhält, dürfte es keine Korrektur beim Ölpreis geben und somit die Aufwärtsbewegeung bei Dragon Oil weiter gehen. Mit einer erneuten Korrektur bei Dragon Oil rechne im Februar. Der Anstehende Frühling dürfte dann auch für einen fallenden Ölpreis sorgen.


www.newscentralasia.com/

A visiting Japanese delegation has expressed serious interest in joint hydrocarbon projects and modernization of Seyidi refinery, the second largest refining facility of Turkmenistan. The delegation, led by Norioshi Yabe (phonetically spelled) of Itochu, visited oil and gas installations in Turkmenistan and expressed firm desire to participate in a number of hydrocarbon projects including modernization and upgrading of Seyidi refinery near the border of Uzbekistan. The Itochu rep said that his company would soon present concrete proposals for mutually beneficial cooperation. In a parallel development, Minoru Sakai, director of information centre for exploration of hydrocarbon resources, visited Ashgabat and held meetings with a number of top officials. He told that in February 2006 an international seminar would be held in Japan where major Japanese companies, organizations and industry leaders would get together to discuss deep, long-term hydrocarbon cooperation with Turkmenistan.

A powerful Chinese delegation, led by Chzhan Gobao (phonetically spelled), vice chairman of China state committee, would begin preliminary round of talks tomorrow in Ashgabat for construction of a gas pipeline to China. Other important projects are also on the agenda.
The Chinese delegation is visiting Ashgabat in the run up to Niyazov’s landmark visit to China in spring this year. It is expected that Gobao and his team would thrash out the details with their Turkmen counterparts for a draft agreement to lay a natural gas pipeline from Turkmenistan to China. The pipeline is likely to have a designed capacity of 30 billion cubic meters. Turkmenistan is attaching great importance to Gobao visit as President Niyazov held yesterday a special brainstorming session with the oil and gas officials to give finalise the Turkmen stance in negotiations with the Chinese delegation. China has offered broad and deep hydrocarbon cooperation to Turkmenistan. The package, as early reports suggest, could include establishment and modernization of oil and gas exploration and extraction facilities and supply of related technology and equipment. In addition to the proposed pipeline project, China has offered to set up a silk fabric production facility and a velvet weaving plant in Turkmenistan. China is active in the Turkmen communications, transportation and construction sectors also. During the recent gas spate between Ukraine and Russia, Turkmenistan maintained a consistently neutral stance and adhered to its commitments, demonstrating that Turkmenistan can be relied upon as a long-term, stable energy provider.

tons of oil in Turkmenistan in 2005

Foreign partners of the Turkmen government produced over 2,3 million tons of oil in 2005, up 30% year-on-year, the state news agency of Turkmenistan reported referring to data released by the Ministry of oil and gas industry and mineral resources of Turkmenistan. Oil production in Turkmenistan is currently conducted by two foreign PSA operators: British-Arab Dragon Oil, working in the Cheleken field, and Britain's Burren Energy, which extracts oil at the Nebitdag block. The Khazar consortium, which includes Mitro International, a foreign contractor of the operator Turkmenneft state consortium, produces oil onshore also on PSA terms.
Dragon Oil produced over 940,000 tons of oil in 2005 with average daily output exceeding 2700 tons of oil. In 2006, the company plans to drill and put into operation 8 new wells. Dragon Oil plans to invest some US $ 280 mln in development of the contracted block and raise oil production to 2,5 mln tons by 2010. Britain’s Burren Energy produced some 950 thousand tons of oil in 2005 with average daily output amounting to 2600 tons of oil. Under the PSA the Nebitdag block includes five oil fields. Only one of them, Burun field, is being currently developed. As of now, 20 new well have been drilled at this field. Petronas (Malaysia) and Maersk Oil (Denmark) are also producing oil offshore on PSA terms in the Turkmen sector of the Caspian Sea. In 2006, Petronas is expected to begin production of early oil under the Block-1 project. Maersk completed the program of seismic testing at the contracted territory last year. According to seismic data interpretation, large oil and gas deposits were identified. A prospecting well will be drilled at the promising structure Garadashlyk which was singled out as priority field. Preparations for drilling the first well at the combined 11th and 12th offshore blocks in the territory of the middle-Caspian oil and gas bearing basin is under way. According to the ministry, over US $ 1,2 billion have been invested in implementation of production sharing agreements in Turkmenistan since 1996. Large-scale plans are expected to be fulfilled by PSA contractors in 2006. Investments will presumably total some US $ 1 billion and there are plans to increase hydrocarbon production to 3 mln tons.

grassi.siteboard.de/viewtopic.php?t=21

LONDON (AFX) - Dragon Oil PLC said it has repaid, early and in full, the outstanding loan, interest and expenses relating to its borrowing form the European Bank for Reconstruction and Development. (EBRD)

The loan facility of up to 60 mln usd was signed in November 2000 and required full repayment by Feb 5, 2008. During the course of the loan facility, Dragon said it availed of a total of 38.3 mln usd and has repaid, early and in full, the outstanding principal amount of 27.6 mln usd, interest of 1.023 mln and minor expenses of 13,721.

Dragon said its increased cash balances have enabled it to conclude that it is in its best interests to repay the EBRD loan and thereby free up group assets against which the loan was secured.

Dragon's Chairman Hussain M. Sultan said: "Now that Dragon has achieved a healthy cash position, the time is opportune for us to repay, not just early, but the entirety of the EBRD loan... This is a positive step forward in our plans to develop the Cheleken Contract Area and grow our production." newsdesk@afxnews.com tc

www.iii.co.uk/news/...5546280&subject=companies&action=article

Dragon Oil ein neues ATH.
Ich hab mit einer stärkeren Korrektur im Februar gerechnet, soll mir aber recht sein, dass es wieder weiter geht zu neuen ATH.

LONDON (AFX) - Dragon Oil PLC said production started from its LAM 10/113 well on the refurbished LAM 10 platform in the Cheleken Contract Area, offshore Turkmenistan.

The well tested oil from Zones 3, 4, 5 and 6 at a combined rate of 3,453 barrels of oil per day.

"This is the first time that oil has been found in the Zone 3 reservoirs in the LAM 10 sector of the field," the company said.

The rig has been moved to the fifth well from the LAM 10 platform: LAM 10/114. newsdesk@afxnews.com jc

www.iii.co.uk/news/...5578180&subject=companies&action=article

.. jau fein .. im  freien fall nach unten ....

13.08.2007
New well at LAM field flows at 2.9mbpd

Dragon Oil reported another operational success on Friday, with its recently finished LAM well 121 reportedly flowing at 2,900bpd from multiple producing horizons. The new producing well should further increase the company's recently reported peak output of 34mbpd, improving its chances to exceed our annual average production forecast of 30.6mbpd.

The announcement confirms the geological quality of the company's assets and our view of Dragon Oil as one of the most financially and operationally sound small-cap stories in the FSU.

Our recommendation for Dragon Oil is Buy, with end-2007 fair value of $6.64.