DUBAI-BASED Dragon Oil, which is listed in London and Dublin, is considering a takeover of exploration company, Bowleven, a listed UK oil company with interests in Cameroon.

The stock exchange announcement was made by the company yesterday.

“Dragon Oil notes the recent movement in Bowleven’s share price and confirms that it is in the preliminary stages of exploring a possible offer for all of the issued and to be issued share capital of Bowleven”, the company said.

The acquisition would significantly expand Dragon’s reach beyond Turkmenistas where its operations are based.

Its principal producing asset is in the Cheleken Contract Area, in the eastern section of the Caspian Sea, offshore Turkmenistan.

Dragon, which is 52 per cent owned by Dubai’s Emirates National Oil Company, has expressed its intention to expand its reach beyond Turkmenistan.

Dragon must declare its firm intention to make an offer for the company by March 16th.

Its shares were up 1.5 per cent at €6.55 in Dublin yesterday.