Drilling and Production Update

10 July 2013

DRAGON OIL PLC

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

Drilling and Production Update

Dragon Oil plc (Ticker: DGO), an international oil and gas exploration, development and production company, today publishes an update on the wells completed in the second quarter of 2013 and production numbers for 1H and June 2013.

Since the previous quarterly drilling update on 2 April 2013, Dragon Oil has completed four wells, including one sidetrack, and performed workovers on three existing wells.

The leased platform-based rig has completed the Dzheitune (Lam) 28/182 development well as a single producer in April and performed the Dzheitune (Lam) 28/151A sidetrack in June. The Dzheitune (Lam) 28/182 well was drilled and completed to a depth of 1,986 metres and the well tested for initial production at 1,876 barrels of oil per day (bopd). The Dzheitune (Lam) 28/151A sidetrack was completed as a single producer to a depth of 2,000 metres and tested for initial production at a rate of 869 bopd. The rig is currently being mobilised to the Dzheitune (Lam) 22 platform where it is to drill two additional wells before the end of the year.

The jack-up rig has drilled the Dzheitune (Lam) 21/180 and 21/181 development wells in a batch drilling mode. The Dzheitune (Lam) 21/180 well encountered a high gas pressure zone and was temporarily suspended. The Dzheitune (Lam) 21/181 well was drilled to a depth of 3,475 metres and completed as a dual producer in June. It is currently being optimised and is producing at a rate of 960 bopd from both strings. The rig has been mobilised to drill three slots on the Dzheitune (Lam) C platform and is currently drilling the Dzheitune (Lam) C/183 well.

The 2013 workover programme on old wells continued with the hydraulic workover unit on the Dzheitune (Lam) 4/4 and 4/8 wells with recompletions in new horizons and added perforations in the Dzhygalybeg (Zhdanov) 60/68 well. The total incremental production from these activities was 450 bopd.

The average Cheleken field production for 1H 2013 was 73,600 bopd (1H 2012: 64,200 bopd), representing an increase of 14% over the corresponding period in 2012. The average production for June 2013 was 75,800 bopd (June 2012: 61,600 bopd). We reiterate our guidance for the growth rate for the full year 2013 to be at the lower end of the medium-term growth rate range of 10% to 15%.

The final production figures for the first half of this year will be published in the Trading Statement due on 16 July 2013. Interim financial and operational results for the period ended 30 June 2013 are scheduled for release on 6 August 2013.

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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.