Drilling and Production Update

8 April 2014

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 a quarterly update on the drilling activity in the Cheleken Contract Area and its exploration assets in the first quarter of 2014.

In the Cheleken Contract Area, the Dzheitune (Lam) B/155A sidetrack was completed by the jack-up rig Elima as a single producer to a depth of 2,447 metres and tested in February 2014 at an initial production rate of 1,027 barrels of oil per day. Currently, the well is producing 1,175 barrels of oil per day. The jack-up rig has been mobilised to the Dzheitune (Lam) 4 platform and is drilling the Dzheitune (Lam) 4/187B well to appraise a location for a future platform: the current depth is 2,550 metres with a high angle inclination.

In March 2014, the Neptune rig spudded the Dzhygalybeg (Zhdanov) 21/101 development well. Land Rig 1 is currently drilling the Dzheitune (Lam) 22/188 well. Work is ongoing on the Dzhygalybeg (Zhdanov) A platform to accept Land Rig 2, which is expected to spud the Dzhygalybeg (Zhdanov) A/102 well in 2Q 2014.

There are three drilling rigs currently operating in the Cheleken Contract Area. We anticipate Land Rig 2, currently being mobilised offshore, to commence drilling later this quarter and the arrival of the Caspian Driller in 2H 2014.

The average field production in the Cheleken Contract Area for 1Q 2014 was 72,300 bopd (1Q 2013: 71,800 bopd). The average production for March 2014 was 73,400 (March 2013: 74,000 bopd) with the quarter's exit rate just above 73,000 bopd. The final production figures for the quarter will be published in the Interim Management Statement due to be released on 22 April 2014.

Due to the delayed start or anticipated later start of drilling by the rigs on site or arriving to the Cheleken Contract Area later this year, we now anticipate that the production growth in 2014 will be around 10% on the basis of 14-16 wells being completed during the year. The drilling programme is now expected to be weighed more towards the second half of the year.

In Iraq, the consortium of Dragon Oil (30%) and Kuwait Energy Corporation (70% and operator) spudded an exploration well using a drilling rig from the Iraqi Drilling Company on the 25th March 2014. The well is targeting two prospective reservoirs; testing is expected to take place in 2H 2014.

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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

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.