Dragon Oil, the exploration and oil/gas producer, controlled by Asian investors, has recorded a sharp rise in pre-tax profit from $160,000 (£107,000) to $643,000 in the six months ended June 30th 1997. This was due to the jump in sales from $1,576,000 to $10,156,000 and reflects higher production levels. The results also benefited from lower administrative expenses and an improvement in transport discounts.

"We have been encouraged by the recent reduction in the sales discount to market oil prices and we are discussing ways to reduce this discount further," said chairman Mr Arifin Panigoro.

The momentum of the group's operations is growing with an expansion of its reserve base. The emphasis will be on the Caspian region, Mr Panigoro said.

Dragon, which has its headquarters in Dublin, with share listings in Dublin and London, has 18,000 Irish shareholders out of a total 88,000.

The company still has a deficit of $17.8 million in its accumulated profit and loss account which rules out dividend payments. However, Dr Oliver Waldron, chief executive officer, said this should be changed within four years.