LONDON, Feb 23 - Oil and gas explorer Dragon Oil (DGO.L)(DGO.I) said it was hopeful of progress on a gas sales deal in Turkmenistan this year but would also diversify into other areas as lower oil prices led to a 30 percent fall in 2009 profit.
Turkmenistan-focused Dragon said on Tuesday it would use its cash balance of more than $1 billion to help it commercialise its gas resources and make acquisitions to diversify its asset base away from Turkmenistan.
Chief Executive Abdul Jaleel Al Khalifa said Dragon had tried to start talks last year with the Turkmen government to sell its gas in the country but problems with the logistics of meeting had held up progress.
"We have proposals that we are trying to put on the table to start the discussion on this," Al Kalifato told Reuters in an interview with Reuters. "Hopefully within the first half of 2010 we can make significant progress in this area."
Evolution Securities analyst David Farrell said given that Dragon's portfolio contained no material exploration, upside was focused on the monetisation of gas and leverage to the oil price.
Dragon shares were up 1.14 percent to 467.5 pence at 1114 GMT, valuing the company at 2.4 billion pounds ($3.7 billion).
The explorer said pretax profit slumped to $259 million in 2009 from $369 million the previous year as sales of crude oil grew by 40 percent but revenue were hit by a lower comparative oil price.
Average daily production rose 9 percent to 44,765 barrels of oil per day (bopd) from 40,992 in 2008. Dragon said it would target annual output growth of 15 percent in 2010 and between 10 and 15 percent on average up to 2012.
Dragon said it was re-assessing whether to create an incorporated holding company in Bermuda, a plan that was announced last year, and remained on the lookout for acquisitions.
Al Kalifa said the company would consider corporate and asset acquisitions in North Africa, the Middle East and Central Asia.
"Our vision is to be in more than one place in the future," he said.
Turkmenistan-focused Dragon said on Tuesday it would use its cash balance of more than $1 billion to help it commercialise its gas resources and make acquisitions to diversify its asset base away from Turkmenistan.
Chief Executive Abdul Jaleel Al Khalifa said Dragon had tried to start talks last year with the Turkmen government to sell its gas in the country but problems with the logistics of meeting had held up progress.
"We have proposals that we are trying to put on the table to start the discussion on this," Al Kalifato told Reuters in an interview with Reuters. "Hopefully within the first half of 2010 we can make significant progress in this area."
Evolution Securities analyst David Farrell said given that Dragon's portfolio contained no material exploration, upside was focused on the monetisation of gas and leverage to the oil price.
Dragon shares were up 1.14 percent to 467.5 pence at 1114 GMT, valuing the company at 2.4 billion pounds ($3.7 billion).
The explorer said pretax profit slumped to $259 million in 2009 from $369 million the previous year as sales of crude oil grew by 40 percent but revenue were hit by a lower comparative oil price.
Average daily production rose 9 percent to 44,765 barrels of oil per day (bopd) from 40,992 in 2008. Dragon said it would target annual output growth of 15 percent in 2010 and between 10 and 15 percent on average up to 2012.
Dragon said it was re-assessing whether to create an incorporated holding company in Bermuda, a plan that was announced last year, and remained on the lookout for acquisitions.
Al Kalifa said the company would consider corporate and asset acquisitions in North Africa, the Middle East and Central Asia.
"Our vision is to be in more than one place in the future," he said.
