Drilling Update

DRAGON OIL PLC

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

Drilling Update

Dragon Oil plc (Ticker: DGO), an international oil and gas exploration, development and production company, publishes the results of completion and initial testing for three development wells and an updated rate for the 28/169 well in the Dzheitune (Lam) field.

The Dzheitune (Lam) C/170 well was completed as a dual producer to a depth of 2,730 metres. The well tested for initial production at 2,072 barrels of oil per day ("bopd"). The drilling rig has skidded to the next slot and spudded the Dzheitune (Lam) C/173 well.

The Dzheitune (Lam) 13/171 is under completion testing and evaluation; further rigless optimisation will be performed on the well. At the moment the well is yielding limited production. The drilling rig has been moved to the Dzheitune (Lam) 13/144 existing well to perform a sidetrack.

The Dzheitune (Lam) 28/169 well, the initial test results for which were reported in May 2012, was re-tested following further optimisation and yielded incremental production of over 300 bopd to reach a test rate of 2,097 bopd. Rigless testing was performed once the well was completed to allow the drilling rig to spud the next well on time.

The Dzheitune (Lam) 28/172 well was drilled to a depth of 2,007 metres and completed as a single producer. The well tested for initial production at 1,976 bopd. The drilling rig has been moved to the next slot and has spudded the Dzheitune (Lam) 28/174 well.

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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.