Drilling Update

11 June 2010

DRAGON OIL PLC

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

Drilling Update

Completion and Initial Testing Completed of Development well Dzheitune (Lam ) B/145

Dragon Oil plc (Ticker: DGO), an international oil and gas exploration and production company, announces the completion and initial testing of the Dzheitune (Lam) B/145 development well. This is the second well to be drilled from Dragon Oil's new Dzheitune (Lam) B platform and was drilled to a depth of 3,344 metres by the Astra jack-up rig. The well tested at an initial rate of 1,054 bopd.

The Astra jack-up rig has now been demobilised following the completion of its short term contract but is planned to be redeployed later in the year.

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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 (+ 44 20 7647 7804)

Sally Marshak, Investor Relations

About Dragon Oil

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.

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

Note

This statement 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.