Drilling Update

FOR IMMEDIATE RELEASE18 November 2011

DRAGON OIL PLC

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

Drilling Update

Dzheitune (Lam) A/162 well tested at initial rate of 1,096 barrels of oil per day

Dragon Oil plc (Ticker: DGO), an international oil and gas exploration, development and production company, announces the completion and initial testing of the Dzheitune (Lam) A/162 development well. The well was drilled as a single producer to a depth of 2,970 metres by the Iran Khazar rig. The well tested for initial production at 1,096 barrels of oil per day. The Iran Khazar rig has skidded to the next slot and has spudded the Dzheitune (Lam) A/165 development well. The workover of the Dzheitune (Lam) A/127 well has been scheduled for 2012. The NIS rig and Rig 40 are currently drilling the Dzheitune (Lam) 28/164 and 13/163 wells, respectively.

Dr Abdul Jaleel Al Khalifa, Chief Executive Officer, commented:

"Dragon Oil is on track to complete 13 wells within the 2011 drilling programme: 11 wells have been successfully put into production with the remaining two wells, the Dzheitune (Lam) 13/163 and 28/164 development wells to be completed in the next few weeks. By the end of this year, we will have completed a record number of wells, which will put us on course to exit the year at a production level of approximately 70,000 barrels of oil per day."

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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.