LONDON, July 17, 2015 /PRNewswire/ --
Funds advised by Elliott Advisors (UK) Limited ("Elliott") hold
a significant economic position relating to 3.3% of the shares of
Dragon Oil, plc ("Dragon Oil" or the "Company") (LSE:DGO).
Elliott notes the recent offer from Emirates National Oil
Company Ltd. (ENOC) L.L.C ("ENOC") to acquire the interests of the
Company's minority shareholders for 750p per share (the
"Offer").
Elliott believes that the Offer substantially undervalues
Dragon Oil and that ENOC's proposed price fails to reflect any of
the multiple sources of value described below.
Elliott believes that Dragon Oil benefits from the opportunity
to grow oil production meaningfully in excess of management's
guidance of 100,000 bopd over the near term as well as to monetize
the Cheleken Contract Area's considerable gas reserves over the
medium term. Elliott sees scope for the discount to Brent at which
Cheleken Contract Area output is sold by Dragon Oil to narrow
significantly over the coming years. Elliott views Dragon Oil as
being very well placed to secure an extension of the current
Cheleken Contract Area PSA beyond its original expiry on favourable
terms and believes that the value of Dragon Oil's 30% working
interest in Block 9 in Iraq is
likely to become significantly clearer over the coming 12
months.
About Elliott
Elliott Advisors (UK) Limited advises two funds, Elliott
Associates, L.P. and Elliott International Limited, with assets
under management totalling more than $26
billion. The Elliott group employs a staff of nearly 350
people, including 160 investment professionals, in its New York headquarters and affiliated offices
in London, Hong Kong and Tokyo.
Notes to editors:
The views expressed above are those of Elliott and should not be
considered as advice or a recommendation to buy, sell or hold a
particular investment. Investment markets and conditions can
change rapidly, therefore the views expressed should not be taken
as statements of fact nor should reliance be placed on them when
making investment decisions.
Investment markets can go down as well as up and market
conditions can change rapidly. The value of an investment and any
income from it can fall as well as rise and investors may not get
back the amount invested.