Companies: DGO   

Dragon Oil, which is developing oil and gas fields off the shores of Turkmenistan, increased pre-tax profits 80 per cent last year to £26 million and says its share of year-end reserves was 315 million barrels of oil, with potential gas reserves of 3.5 trillion cubic feet. Robert Tyerman reports.

Fully-listed Dragon improved profitability last year, nearly doubling profits on turnover 18 per cent ahead to £51 million. Chairman Hussain Sultan says estimated oil reserves at the Dzheitun and Dzhygalybeg fields in the Cheleken contract area offshore Turkmenistan, in which the company is participating, stood at 661 million barrels at the end of December, of which Dragon is entitled to 315 million barrels.

At the same time, 'the best estimate for contingent gross gas reserves' at Cheleken was 3.5 trillion cubic feet. The reserve estimates reflect an assumed extension of the current production sharing agreement there.

Dragon's high-flying shares are 3.25p off today, along with much of the market. But there could well be more life left in them.