Block 9, Iraq: Exploration Well Update

10 September 2014

DRAGON OIL PLC

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

Block 9, Iraq: Exploration Well Update

Dragon Oil plc (Ticker: DGO), an international oil and gas exploration, development and production company, advises that Kuwait Energy, Dragon Oil's partner in Block 9, Iraq (Dragon Oil 30% interest), today issued the following update on the exploration well, Faihaa-1, being drilled in the block.

FAIHAA-1 WELL UPDATE

"Kuwait, September 10, 2014: Kuwait Energy ("the Company") announces that the consortium comprised of Kuwait Energy (70% and operator) and Dragon Oil (30%) has made its first oil discovery at 'Block 9', Iraq.

The successful discovery was at the consortium's first target, the Mishrif formation at 2,700 meters, in its Block 9 exploration well, 'Faihaa-1', located in Northern Basra, Iraq.

Preliminary tests of the Faihaa-1 Mishrif formation resulted in a flow rate of circa 2,000 BOPD of 20 API oil on 32/64" choke. The consortium will conduct more detailed testing on Mishrif towards the end of the year.

The consortium's strategy is to continue drilling activities, exploring deeper horizons and collecting further data, to fully evaluate the discovery and to define an appraisal plan."

Dr Abdul Jaleel Al Khalifa, CEO, Dragon Oil plc, commented:

"We are pleased to report along with our operating partner Kuwait Energy an oil discovery in the first target, the Mishrif formation, in Block 9, Iraq. This represents the first significant success in Dragon Oil's exploration portfolio. Drilling continues towards the second target, which will be tested later this year, and we look forward to a full evaluation of the discovery and the drawing up of a block appraisal plan by the consortium."

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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 and gas producing fields, Dzheitune (Lam) and Dzhygalybeg (Zhdanov).

The Group has exploration blocks in Tunisia, Iraq, Afghanistan, Egypt and the Philippines. Dragon Oil's diversification strategy is to add exploration and production assets within Africa, parts of Asia and the Middle East in order to create a diversified and balanced portfolio of assets for the Group.

www.dragonoil.com

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