20th Mar 2008 07:00
Dragon Oil PLC20 March 2008 20th March 2008 DRAGON OIL plc ("Dragon Oil" or the "Company") Drilling Update Dzheitune (Lam) A/125B on production Highlight • Dragon Oil's development well Dzheitune (Lam) A/125B yields an initial, combined flow rate exceeding 4,082 bopd from the short and long strings. Hussain M. Sultan, Chairman and CEO of Dragon Oil, commented: "The successful completion and initial testing of the Dzheitune (Lam) A/125Bdevelopment well, drilled from the Dzheitune (Lam) A platform, is the secondwell completed by Dragon Oil in 2008. The results from this well are especiallyencouraging as it is the first time we have perforated and produced from theupper most part of reservoir zone CH2." Drilling Details Initial testing of the well A/125B, which was drilled to a depth of 4080 metres, has been successfully completed. The well yielded an initial combined flowrate of 4,082 bopd from the short and long strings. Testing of the individualshort and long strings resulted in production rates of 2,399 bopd and 1,683 bopdrespectively. Further testing and optimisation is scheduled to take place overthe coming weeks. The 'Iran Khazar' rig has since been skidded to slot 7 on the Dzheitune (Lam) Aplatform and will spud a further development well, Dzheitune (Lam) A/127shortly. The new development well has a target depth of 4,164 metres. Background Note Dragon Oil Plc is an innovative international oil and gas development andproduction company, quoted on the London and Irish Stock exchanges (Tickersymbol: DGO). Its principal producing asset is in the Cheleken Contract Area, inthe eastern section of the Caspian Sea, offshore Turkmenistan and recentlyacquired 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 100% interest in and is the operator of the Production Sharing Agreementfor 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 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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