Dragon Oil, the London and Dublin-listed independent majority owned by the Dubai government with major assets in Turkmenistan, has announced a $200 million share buy-back programme.
The firm said the buy-back programme, which will buy up to 5% of the issued share capital of the company commencing today, still leaves pleanty from the company’s $1.65 billion cash pile for more investment in existing and new assets.
“The Board is confident that the Group’s financial position and its cash generating abilities allow the Company to finance organic development of the Cheleken Contract Area, add new assets to its portfolio, pay regular dividends and return surplus funds to shareholders through a share buyback programme,” said Chariman Mohammed Al Ghurair. “Accordingly, the Board believes that the buyback of shares is in the best interests of the Company and its shareholders.”
“Diversification remains at the top of our agenda as we seek to deploy our expertise and resources to become a multi-asset company,” Chief Executive Abdul Jaleel Al Khalifa said in a statement.
Shares in London are currently trading at 5.15p, up 6.5% on the day.
Dragon Oil successfully bid with Kuwait Energy and the Turkish Petroleum Corporation for respect of Block 9 in Iraq’s latest oilfield auction, with Dragon taking a 30% interest.
