20th Aug 2008 11:26
DRAGON OIL plc
("Dragon Oil" or the "Company")
Drilling Update
Dzheitune (Lam) A/129 on production
Highlights
Development well Dzheitune (Lam) A/129 yielded a combined rate of 2,123 barrels of oil per day ('bopd') from the short and long strings following initial testing
Completion of well Dzheitune (Lam) 22/130 is scheduled for October 2008
The Iran Khazar rig will spud a further development well, Dzheitune (Lam) A/131, which is scheduled for completion in November 2008.
Hussain M. Sultan, Executive Chairman, commented:
"I am pleased to announce the successful completion and initial testing of the Dzheitune (Lam) 22/129 development well using the Iran Khazar rig. This is the sixth well we have completed this year on schedule and in line with Dragon Oil's drilling programme. We remain confident that we will meet our 2008 targets for both the number of wells drilled and production."
Drilling Details
Initial testing of the Dzheitune (Lam) A/129 well was completed on schedule. The well was drilled to a depth of 4,135 metres, with testing of the short and long strings resulting in production rates of 1,417 bopd and 796 bopd respectively. Further testing and optimisation is scheduled to take place over the next few weeks.
The CIS-1 rig is currently drilling the development well Dzheitune (Lam) 22/130 from the Dzheitune (Lam) 22 platform. This new development well has a target depth of 3,840 metres and is expected to come on production October 2008. Once well Dzheitune (Lam) 22/130 is completed, the CIS-1 rig will be moved to the Dzheitune (Lam) 28 platform for the next phase of its drilling programme
The Iran Khazar rig will skid to slot 8 on the Dzheitune (Lam) A platform and will spud a further development well, Dzheitune (Lam) A/131. The new development well has a target depth of 4,164 metres and is expected to come on production in November 2008. Once this well has completed, the Iran Khazar rig will go for planned maintenance works and thereafter will commence drilling in January 2009
Background Note
Dragon Oil Plc is an innovative international oil and gas 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 and recently acquired interests in Blocks 35, 49 and R2 (10%) in the Republic of Yemen.
Dragon Oil (Turkmenistan) Ltd., a wholly owned subsidiary of Dragon Oil plc, holds a 100% interest in and is the operator of the Production Sharing Agreement for the Cheleken Contract Area in the Caspian Sea, offshore Turkmenistan. Operational focus is on the re-development of two oil producing fields, Dzheitune (Lam) and Dzhygalybeg (Zhdanov).
www.dragonoil.com
For further information please contact:
|
Media enquiries |
|
Citigate Dewe Rogerson (+44 20 7638 9571) |
|
Martin Jackson |
|
George Cazenove |
|
Investor and Analyst enquiries |
|
Dragon Oil Plc (+971 4 305 3600) |
|
Leanne Denman, Investor Relations Officer |
Related Shares:
DGO.L