5th Aug 2009 07:00
FOR IMMEDIATE RELEASE
5 August 2009
DRAGON OIL PLC
(the "Company" or together with its subsidiaries "Dragon Oil" or the "Group")
Drilling Update
Dzheitune (Lam) 13/135 well on production with an initial combined tested rate of 1,320 barrels of oil per day ("bopd")
Dragon Oil plc (Ticker: DGO), an international oil and gas exploration and production company, today announces the successful completion and initial testing of the Dzheitune (Lam) 13/135 development well. The well was drilled to a depth of 3,302 metres resulting in an initial combined tested rate of 1,320 bopd with further testing and optimisation scheduled to take place over the coming weeks.
The tested rate was slightly below expectations; however, it is expected to improve in line with other wells in this area as the pressures of the gassy zones are normalised enabling the oil zones to produce at normal levels.
The platform-based Rig 40 has now skidded to Slot 5 on the Dzheitune (Lam) 13 platform where it has spudded the development well Dzheitune (Lam) 13/138.
Dr Abdul Jaleel Al Khalifa, Chief Executive Officer, commented:
"I am pleased to report that the Dzheitune (Lam) 13/135 development well has now been completed. Although the combined test rate is below the average production rates expected from this area of the field, the rate will improve as the well pressures normalise. We continue to progress the drilling programme in line with the field development strategy and the projected production target for 2009-2011."
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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. The Company acquired interests in Blocks 35, 49 and R2 (10%) in the Republic of Yemen in December 2007.
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 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.
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