9th Aug 2007 13:25
Dragon Oil PLC09 August 2007 9 August 2007 PRESS RELEASE DRAGON OIL plc Dragon Oil Plc ("Dragon Oil") DRILLING UPDATE - WELL A/121 ON PRODUCTION Highlights • Dragon Oil's development well A/121 yields an initial, combined flowrate exceeding 2,900 bopd from the short and long strings. Hussain M. Sultan, Chairman and CEO of Dragon Oil, commented: "I am pleased to announce the successful completion and initial testing of theDjeitun (LAM) A/121 development well drilled from the Djeitun (LAM) A platform.With the completion of this well, we have completed five wells this year, fourdevelopment wells and one appraisal well." Drilling update details Dragon Oil announces the results of initial testing of the well A/121 on theDjeitun (LAM) structure, which was drilled to a depth of 4,010 metres. Initialtesting is ongoing and the well is yielding an initial flow rate exceeding 2,900bopd from the lower and upper zones combined. With ongoing drilling activitieson the Lam A wellhead tower, full optimization the A/121 well is restricted.Testing of the individual short and long strings resulted in production rates of2,216 bopd and 714 bopd respectively on 24/64ths chokes with no produced water.Further testing and optimization is scheduled to take place over the course ofthe next few weeks. Enquiries: Citigate Dewe Rogerson +44 207 638 9571 Media enquiries: Martin Jackson / George Cazenove Notes to Editors: (1) Dragon Oil plc is an independent oil and gas exploration and productioncompany with interest in the Caspian Sea, Turkmenistan. Dragon is listed on theLondon Stock Exchange and the Irish Stock Exchange ('DGO.') (2) Dragon Oil (Turkmenistan) Ltd., a wholly owned subsidiary of Dragon Oilplc, holds 100% interest in and is the operator for a 25-year base term of theProduction Sharing Agreement ("PSA") for the Cheleken Contract Area. Developmentof the two oil producing fields, Dzheitun ("LAM") and Dzhygalybeg ("Zhdanov") inthe Contract Area commenced in May 2000. Dragon has an exclusive right tonegotiate an extension to the PSA for a further period of not less than 10years. (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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