DRAGON Oil has reported record financial results but stayed tight-lipped over a potential offer for Scottish exploration company Bowleven.
In 2011, Dragon's turnover increased by 47% from $780.4 million (£494m) to $1.15 billion (£728m) while profits were up 68% to $648.4m (£410m).
Dragon, majority owned by Dubai's Emirates National Oil Company, confirmed last week it was in the early stages of making an offer for Edinburgh-based Bowleven, which has the bulk of its interests in Cameroon.
However, in annual results announced yesterday, Dragon would only state a commitment to diversifying beyond its Caspian Sea assets.
Any acquisitions could be funded from a cash balance that grew by almost a third to $1.53bn (£968m).
Production rose by 30% to 61,500 barrels of oil per day (bopd) with a plan to hit 100,000 barrels by 2015. The company drilled 13 wells in the year and intends to complete 15 this year and as many as 20 annually between 2013 and 2015.
Dr Abdul Jaleel Al Khalifa, chief executive, said: "We surpassed the $1bn mark in terms of turnover for the first time and generated substantial cash, some of which will be distributed as dividends and will also finance infrastructure expansion and drilling activities.
"Most of the cash generated will be retained to help achieve our strategy of diversification through acquiring or investing in new assets as and when such opportunities become available."
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