Drilling Update

FOR IMMEDIATE RELEASE

19 March 2012

DRAGON OIL PLC

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

Drilling Update

Dzheitune (Lam) C/167 well tested at initial rate of 3,396 barrels of oil per day

Dragon Oil plc (Ticker: DGO), an international oil and gas exploration, development and production company, announces the successful completion and initial testing of the Dzheitune (Lam) C/167 development well.

The well was completed as a dual producer to a depth of 2,765 metres. It tested for initial production at 1,682 barrels of oil per day at the short string with the long string testing at 1,714 barrels of oil per day. The combined rate of initial production was 3,396 barrels of oil per day. The drilling rig has skidded to the next slot and spudded the Dzheitune (Lam) C/170 well.

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

"I am pleased to report solid drilling results from the first appraisal and development well to have been completed from the new wellhead and production Dzheitune (Lam) C platform. The drilling results together with logs and pressure tests indicate that the prolific oil bearing sands in the reservoirs under the Dzheitune (Lam) 28 platform extend to the west towards the Dzheitune (Lam) C platform location. The findings from this well further prove our understanding of the Dzheitune (Lam) West area."

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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.