Dragon Oil to miss output goal; Enoc talks continue

Dragon Oil (DGO.L) said it would likely undershoot its production growth target in 2009 due to technical problems, and continues to talk to majority shareholder Emirates National Oil Company (Enoc) about a possible takeover bid.

Dubai-based Dragon said gross output growth for the full year is likely to be below the 15 percent level which the company is aiming for, annually, over 2009-11, as it unveiled a 37 percent drop in net profit to $105 million in the first half of 2009, due to lower oil prices.

"The results today are disappointing in regard to the group's statement that it will undershoot its production growth target," Ed Woolfitt, Head of Trading at Galvan Research, said.