17th May 2007 13:06
Dragon Oil PLC17 May 2007 DRILLING UPDATE SUCCESSFUL COMPLETION AND TESTING OF WELL LAM A/119 Highlights • Perforation and flow-testing of the well has confirmed production from well, A/119, with a combined initial production rate of 3,100 barrels of oil per day ("bopd"). Hussain M. Sultan, Chairman and CEO of Dragon commented: "I am pleased to announce the successful completion and testing of the A/119development well. This is the first well from the new LAM A Platform and theinitial production test results are excellent, exceeding our originalexpectations for this well. Well A/119 is the first to be drilled into thewestern end of the LAM structure and the positive test results have raised ourexpectations for future wells in this part of the Cheleken Contract Area." Enquiries: Citigate Dewe Rogerson +44 207 638 9571 Media enquiries: Martin Jackson / George Cazenove Analyst enquiries: Nina Soon Drilling update details As announced in an earlier press release, Dragon Oil completed the drilling ofthe development well A/119 using the Iran Khazar jack-up drilling rig on the newLAM A platform. Following on from that announcement, Dragon Oil announces theresults of initial testing of the well. The well tested at a combined, initialrate of 3,100 bopd from reservoir zones 4, 5 and 8. Meanwhile, the Iran Khazar rig spudded the second development well from the LAMA platform, A/121, on 2 May 2007. Drilling is continuing and the current depthis at approximately 2,000 metres. Ends Notes to Editors: (1) Dragon Oil plc is an independent oil and gas exploration and production company with interest in the Caspian Sea, Turkmenistan. Dragon is listed on the London Stock Exchange and the Irish Stock Exchange ('DGO.') (2) Dragon Oil (Turkmenistan) Ltd., a wholly owned subsidiary of Dragon Oil plc, holds 100% interest in and is the operator for a 25-year base term of the Production Sharing Agreement ("PSA") for the Cheleken Contract Area. Development of the two oil producing fields, Dzheitun ("LAM") and Dzhygalybeg ("Zhdanov") in the Contract Area commenced in May 2000. Dragon has an exclusive right to negotiate an extension to the PSA for a further period of not less than 10 years. (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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