Dragon Oil receives takeover approach from Emirates National Oil

Irish-listed explorer Dragon Oil has received a takeover approach from Emirates National Oil.

The company said Dubai-based Emirates made an approach, but added there can be no certainty an offer will be made.

“There can be no certainty that any firm offer for the company will be made nor as to the terms on which any firm offer might be made,” Dragon said in a brief statement.

Emirates National Oil, which is owned by Dubai’s government, is the largest shareholder in Dragon Oil, holding a 53 per cent stake according to Bloomberg Data. Dragon said the explorer had made an offer for the shares in the company it doesn’t already own.

Revenues at Dragon Oil rose to $1.1 billion last year, a result of higher sales volumes, which were offset by lower realised prices. The oil exploration firm generated $0.8 billion in cash from operations. Pre-tax profits dipped by 15 per cent to fall back to $589 million.

Dragon Oil said it would complete between 15 and 20 wells a year in 2015 and 2016, and is targeting annual production growth of around 10 per cent or higher in 2015 at 100,000 barrels of oil per day.