The Duabi-based explorer Dragon Oil has said it has put aside more than $1 billion (Ôé¼738 million) to work on acquisitions this year after falling energy prices caused a drop in its full-year profits.
The Turkmenistan-focused explorer is looking for oil and gas assets in central Asia, Africa and the Middle East as it seeks to diversify its assets.
Dragon said it is targeting annual output growth of 10 to 15 per cent through to 2012 as it seeks expansion. Its average daily production rose nine per cent in 2009 to 44,765 barrels of oil per day from 40,992 barrels per day in 2008.
The company said output would average at least 51,000 barrels per day this year. It also said it would spend around $250 million (Ôé¼184 million) on drilling each year through to 2012.
Abdul Jaleel Al Khalifa, CEO of Dragon, commented: ÔÇ£Our significant achievements during the course of the year are a testament to the hard work and dedication of all of our employees.
ÔÇ£Going forward we have a strong balance sheet with a net cash position of more than $1 billion and no debt which provides us with significant financial flexibility as we look to diversify our asset base and commercialise our gas resources.ÔÇØ
He concluded: ÔÇ£Looking ahead we will continue to invest for growth and are working hard to translate this strategy into value for the business for the benefit of our shareholders, our employees and our hosts."
Dragon Oil also plans to spend up to $870 million (Ôé¼642 million) over three years on infrastructure in Turkmenistan to boost oil output and sell natural gas that is wasted due to the lack of a market.
The company already has extensive operations in the central Asian country, where it is currently planning a 40 kilometre trunk line to carry oil and gas onshore, as well as expansion of a processing plant.
The company is also heavily involved with discussions about gas pricing and contracts with the Turkmenistan government, which it says are moving ahead.
In addition, Dragon said it was currently re-assessing whether to create an incorporated holding company in Bermuda, a plan that was announced last year.
The number of Dragon employees increased this year to 1,015ÔÇöan 11 per cent increase on the previous year.
The companyÔÇÖs principal producing asset is in the eastern Caspian Sea, offshore Turkmenistan. However, it also owns 10 per cent participating interests in blocks in Yemen.
