Dragon to resolve funding issues in 2004

Independent oil and gas exploration firm Dragon Oil plc has posted after tax profits of $28.8m (€23.28m) up from $15.5m (€12.53m) in 2002.

Increased production, improved oil prices and prudent cost control helped power the figures.

Turnover was up 62% to $82m (€66m) while operating profit was up 78% to €37.3m (€30.16m), according to 2003 year end results issued today.

Last month, well LAM 21/106 at offshore Turkmenistan was plugged and temporarily suspended due to technical reasons but Dragon remains optimistic of encouraging reservoir potential and will evaluate options to complete it later in 2004.

According to Chairman Hussain M Sultan: "2003 has been a very good year for Dragon with another set of record operating and financial results. Dragon has a strong asset base and excellent development prospects.

"Dragon’s focus in 2004 is to resolve the funding issues that will underwrite its long term development plans and achieve continuing success in its current drilling programme that includes up to four wells from the LAM 21 platform."

An equity placing in December 2003 saw Dragon raise $18m (€14.56m) with 36.5 million shares released at stg 28p (€0.42c) each.

Emirates National Oil Company (ENOC)is the main stakeholder in Dragon Oil with over two-thirds of the shares.