Drilling Update

28 December 2012

DRAGON OIL PLC

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

Drilling Update

Dzheitune (Lam) A/177 well tested at initial rate of 1,796 bopd

Dragon Oil plc (Ticker: DGO), an international oil and gas exploration, development and production company, today publishes the results of successful completion and initial testing for the Dzheitune (Lam) A/177 development well.

The Dzheitune (Lam) A/177 well was completed as a single producer to a depth of 3,085 metres. The well tested at an initial production rate of 1,796 barrels of oil per day. The jack-up rig that has competed this well is currently undergoing scheduled maintenance.

Dr Abdul Jaleel Al Khalifa, CEO, commented:

"I am pleased to report the successful completion and testing of the Dzheitune (Lam) A/177 development well. With this well we conclude an intensive drilling programme for this year, having completed 15 wells against the initial target of between 13 and 15 wells set at the beginning of the year.

"We have been producing at well above 70,000 bopd since mid-August and we firmly re-iterate our production growth guidance of 10% for 2012. The final production numbers will be reported in the Trading Statement due on 15 January 2013."

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About Dragon Oil

Dragon Oil plc is an international oil and gas exploration, 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

Disclaimer

This news release 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.