Shares in Dragon Oil surged today on the back of rumours that the firm's drilling programme offshore of Turkmenistan will deliver promising returns. The shares closed up a massive 38.6% to 61 cents in trading in Dublin today.
A Dragon spokesman said information about drilling in the Caspian Sea was unlikely to be released before early April.
'The share is trading at a huge discount to our net asset value,' said Job Langbroek of Davys Stockbrokers in a recent report. 'We have no difficulty projecting a share price target of 50 pence. The stock should be bought,' he said.
Dragon has outperformed the FTSE All Share Oil and Gas Index by 55% since January.
Dragon has previously said it has proven and probably reserves of about 600 million barrels of oil and 2.2 trillion standard cubic feet of gas in the eastern Caspian's Cheleken Block.
