5th Feb 2007 12:32
Dragon Oil PLC05 February 2007 Dragon Oil Plc ("Dragon") DRILLING UPDATE DRILLING COMPLETED ON LAM 21/117 AND LAM 13/118 Dragon today issued the following drilling update. Highlights • Dragon completes drilling of development wells, LAM 21/117 and LAM 13/118. Perforation and flow-testing of these wells will follow and initial flowrates will be published separately; • The 'Iran Khazar' rig has moved to the new LAM 'A' platform and hasspudded the first in a series of development wells, well LAM A/119; and • The 'Astra' rig will move shortly to the LAM 28 platform and willdrill the Company's first exploration / appraisal well, well LAM 28/120, in theCheleken Contract Area, on the 'LAM West' structure. Hussain M. Sultan, Chairman and CEO of Dragon commented: "I am pleased to announce the completion of the Company's first two developmentwells in the current year. I am now looking forward to seeing the results ofthe next wells on our drilling schedule, which includes the first well to bedrilled from our new 'LAM A' platform and our first exploration / appraisal wellto be drilled on the LAM West structure." Enquiries: Citigate Dewe Rogerson +44 207 638 9571Media enquiries: Martin Jackson / George CazenoveAnalyst enquiries: Nina Soon Drilling update details Dragon announces that well LAM 21/117, drilled from the LAM 21 platform in theCheleken Contract Area, offshore Turkmenistan, has been completed using the 'Iran Khazar' jack-up drilling rig. While there were some problems with thedrilling and completion operations which caused delays, these problems weresuccessfully overcome. The well is currently in the perforation and testingphase and the results will be announced after completion of this phase ofoperations. The 'Iran Khazar' has jacked up alongside the Company's new wellhead andproduction platform, LAM 'A', and has spudded the first in a series ofdevelopment wells, well LAM A/119. The new development well has a target depthof 4,431 metres. Dragon further announces that well LAM 13/118, drilled from the LAM 13 platformhas been completed using the 'Astra' jack-up drilling rig. The well was drilledto a depth of 3,205 metres and the perforating and testing operations willshortly commence. The results of this well will be announced after completion ofthe perforation and testing phase. The 'Astra' will move in the coming days to the LAM 28 platform, where it willjack-up and spud the Company's first exploration / appraisal well, well LAM 28/120, on the LAM West Structure. Results from the new well, which has a targetdepth of 4,273 metres, will be used to evaluate the potential for commercialhydrocarbons in this area. Ends Notes to Editors: (1) Dragon Oil plc is an independent oil and gas exploration and productioncompany with interest in the Caspian Sea, Turkmenistan. Dragon is listed on theLondon Stock Exchange and the Irish Stock Exchange ('DGO.') (2) Dragon Oil (Turkmenistan) Ltd., a wholly owned subsidiary of Dragon Oilplc, holds 100% interest in and is the operator for a 25-year base term of theProduction Sharing Agreement ("PSA") for the Cheleken Contract Area. Developmentof the two oil producing fields, Dzheitun ("LAM") and Dzhygalybeg ("Zhdanov") inthe Contract Area commenced in May 2000. Dragon has an exclusive right tonegotiate an extension to the PSA for a further period of not less than 10years. (3) For further information on Dragon see www.dragonoil.com This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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