Noster issues Dragon Oil statement

Noster Capital welcomes the statement put out by ENOC regarding its offer on Dragon Oil Plc.

It is encouraging to see that ENOC remains a committed long term shareholder to Dragon Oil Plc (DGO) should the undervalued offer that is on the table not be accepted by the minorities.

During the past five months, the Independent Committee has not replied to repeated requests from Noster Capital to engage in a discussion regarding our view of the intrinsic value of DGO’s assets. We continue to believe that it would be in the best interests of all stakeholders for the Independent Committee to acknowledge requests by significant minority shareholders to discuss detailed analyses of the underlying fundamentals of the Company.

Noster Capital understands that the financing to the deal might not be able to be increased and that as a result ENOC may have difficulties in raising the offer to a level that would start reflecting the intrinsic value of DGO. If that is the case, we welcome the long term commitment that was made by ENOC in this announcement and look forward to enjoy the future success of DGO as a public company, where all of us together, will benefit from the extremely strong fundamentals that we believe are in place for the oil & gas sector and for DGO in particular.

We would like to publicly encourage the Independent Committee to run an auction, and to openly share all the information with the market, where every interested party would be invited to submit a bid for the minorities of DGO. In this way, every investor would be certain that the committee tried to maximise the value for all minorities, to whom they have a primary fiduciary duty. Noster Capital LLP is the investment manager for Noster Capital Master Fund, a Global Value Investing fund which invests for the medium to long term in public equities of companies who are selling at deep discounts
to their intrinsic value.