ENOC mulls Dragon Oil acquisition

U.A.E.-based energy company Emirates National Oil Co. (ENOC) is contemplating acquiring all of the outstanding shares in U.K.-listed oil producer Dragon Oil P.L.C., which is based in Turkmenistan. ENOC, which presently owns 52% of Dragon Oil’s shares, said it has held preliminary discussions with Dragon Oil regarding its plan to offer a price that would represent a modest premium to Dragon Oil’s closing share price as of June 3, 2009. Dragon Oil’s shares closed at £3.38 (US$5.56) per share on June 3, valuing the company at around £1.73 billion (US$2.84 billion). Dragon produced 43,787 barrels per day of oil in the first quarter. The company’s total production comes from a 100% operator interest in the Cheleken contract area in the Caspian Sea, off the shore of Turkmenistan, for which it signed a 25-year production-sharing contract in 1999. In February, the company said the Cheleken contract area has been confirmed to hold proved and probable reserves of 645 million barrels of oil and gas. (June 5, 2009)