Award of contracts in Turkmenistan

23 October 2012

DRAGON OIL PLC

(the "Company" or together with its subsidiaries "Dragon Oil" or the "Group")

Award of contracts for two platform-based drilling rigs

Dragon Oil plc (Ticker: DGO), an international oil and gas exploration, development and production company, today announces that it has awarded separate contracts for the lease and management of two 2000 horse-power platform-based ("land") rigs with specifications in the Cheleken Contract Area, Turkmenistan. The contracts were awarded to international suppliers and are for the term of two years with an option to extend the contracts for another year.

One of the land rigs ("Land Rig 1") is to be rigged up on the Dzhygalybeg (Zhdanov) A platform when the platform is ready for drilling in 1Q 2013; the drilling from this platform is to commence shortly after. The other land rig ("Land Rig 2") is to be mobilised for drilling from the Dzhygalybeg (Zhdanov) B platform, expected to be ready in 2Q 2013.

Dr Abdul Jaleel Al Khalifa, Chief Executive Officer, commented:

"I am delighted to announce that Dragon Oil has secured two platform-based rigs for a period of two years with an extension option. We have further firmed up the drilling programme for 2013 and beyond with the lease of these two rigs."

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About Dragon Oil

Dragon Oil plc is an international oil and gas exploration, development and production company, quoted on the London and Irish Stock exchanges (Ticker symbol: DGO). Its principal producing asset is in the Cheleken Contract Area, in the eastern section of the Caspian Sea, offshore Turkmenistan.

Dragon Oil (Turkmenistan) Ltd., a wholly owned subsidiary of Dragon Oil plc, holds 100% interest in and is the operator of the Production Sharing Agreement for the Cheleken Contract Area. The operational focus is on the re-development of two oil-producing fields, Dzheitune (Lam) and Dzhygalybeg (Zhdanov).

www.dragonoil.com

Disclaimer

This news release may contain forward-looking statements concerning the financial condition and results of operations of Dragon Oil. Forward-looking statements are statements of future expectations that are based on management's current expectations and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in these statements. No assurances can be given as to future results, levels of activity and achievements and actual results, levels of activity and achievements may differ materially from those expressed or implied by any forward-looking statements contained in this report. Dragon Oil does not undertake any obligation to update publicly or revise any forward-looking statement as a result of new information, future events or other information.