Placing

RNS Number:5591T
Dragon Oil PLC
22 December 2003

Dragon Oil PLC

22 December 2003





Dragon Oil PLC ('Dragon' or the 'Group') Placing of 36,500,000 new ordinary
shares of Euro0.10 each (the 'New Ordinary Shares') at a price Stg#0.28 per share.





Dragon Oil PLC is pleased to announce that the Company has entered into
arrangements to place 36,500,000 Ordinary Shares in the capital of the Company
(representing approximately 10% of the existing issued share capital of the
Company) at a price of Stg#0.28 per share ('the Placing'). The Placing has been
arranged by Aton Capital Group LLC and Davy Stockbrokers.



It is envisaged that the proceeds of the Placing, amounting to approximately
US$18 million before expenses, will be to primarily fund the 3D Seismic Survey
of the entire block in the Cheleken Contract Area.



Application will be made to the Irish Stock Exchange Limited and to the London
Stock Exchange plc for the New Ordinary Shares to be admitted to the Official
List of the Irish Stock Exchange and the Official List maintained by the UK
Listing Authority respectively, and to the Irish Stock Exchange and the London
Stock Exchange for admission of the New Ordinary Shares to trading. It is
expected that admission will be effective and that dealings in the New Ordinary
Shares will commence on 2 January 2004.



Dragon's Chairman and CEO, Hussain M Sultan said:



"The completion of a 3D seismic survey is an essential element for the
development of a long term continuous drilling field development programme and
is pleasing that both existing and new institutional shareholders have supported
this equity placing.



Dragon will continue to review all equity and debt financing options required to
support its long term field development programme."



For reference:



Citigate Dewe Rogerson ([phone])

Martin Jackson



Aton Capital Group LLC  ([phone])

Khalid Dianov



Davy Corporate Finance  ([phone])

Hugh McCutcheon






                      This information is provided by RNS
            The company news service from the London Stock Exchange
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