Elliott Believes That ENOC's Offer Substantially Undervalues Dragon Oil

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.