Dragon Oil's share price has taken a beating in the past few weeks, mainly because its biggest shareholders are heavily exposed to the financial crises in the Far East. The shares are down over 7 per cent on the turn of the year but may be set to rise with the appointment of a new market-maker and financial adviser.

Dragon appointed Dresdner Kleinwort Benson as financial adviser and market-maker and DKB's clout should ensure the shares find a wider market.

The reaction in the market to DKB's appointment was positive with the shares trading up a few pence to 65p sterling, but still a long way off the 109p sterling 12-month high.

The slump is hardly justified with Dragon's prime assets in the Caspian Sea, many thousands of miles from the Far East trouble spots. Dragon's offshore exploration interests in Thailand and the Philippines may, however, be affected by the local turmoil, and the dominant position on the share register of Indonesian investor Arfin Panigor.