Drilling Update

12 March 2010

DRAGON OIL PLC

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

Drilling Update

Highlights

·; Development well Dzheitune (Lam) A/142 tested at an initial combined rate of 2,103 barrels of oil per day ("bopd")

·; Development well Dzheitune (Lam) 13/143 tested at an initial combined rate of 2,168 bopd

Dragon Oil plc (Ticker: DGO), an international oil and gas exploration and production company, announces the completion and initial testing of both the Dzheitune (Lam) A/142 and 13/143 development wells. Dzheitune (Lam) A/142 well was drilled to a depth of 3,961metres by the Iran Khazar rig. The well tested at a combined rate of 2,103 bopd with the short string contributing 1,180 bopd and the long string contributing 923 bopd.

Dzheitune (Lam) 13/143 was drilled to a depth of 3,450metres by Rig 40. The well tested at a combined rate of 2,168 bopd with the short string and the long string contributing 1,144 bopd and 1,024 bopd respectively. Further testing and optimisation of both wells are scheduled to take place over the coming weeks.

The Iran Khazar rig has repositioned to workover a well on the same platform in order to enhance its production. Rig 40 has skidded to Slot 1 on the Dzheitune (Lam) 13 platform and will shortly commence drilling the Dzheitune (Lam) 13/144 well.

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

"I am pleased to report the successful completion and initial testing of both the Dzheitune (Lam) A/142 and 13/143 development wells, marking our first two successfully-completed development wells this year. Our field production is subject to normal decline and adding wells will ensure that we meet our 2010 committed production growth target."

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For further information please contact:

Media enquiries:

Citigate Dewe Rogerson (+44 20 7638 9571)

Martin Jackson

George Cazenove

Investor and analyst enquiries:

Dragon Oil plc (+ 44 20 7647 7804)

Sally Marshak, Investor Relations

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 and recently acquired interests in Blocks 35, 49 and R2 (10%) in the Republic of Yemen.

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 in the Caspian Sea, offshore Turkmenistan. Operational focus is on the re-development of two oil producing fields, Dzheitune (Lam) and Dzhygalybeg (Zhdanov).

www.dragonoil.com

Note

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.