Dragon Oil, the international oil and gas exploration and production company, has recorded after tax profit of $1.5 million (€1.69 million), helped by improved cash-flow due to increases in production from the Turkmenistan Cheleken block and improved oil prices. This compares with a loss of $3.1 million for the same period in 1999.

Mr Hussain Sultan, the chairman, said the company anticipated that drilling of the first new well on the Turkmenistan block would start in early September. Longer term, success in Cheleken would allow the company to invest in new opportunities that would build on their expertise within the natural resources industry.