16th Jul 2008 07:00
DRAGON OIL plc
("Dragon Oil" or the "Company")
Drilling Update
Dzheitune (Lam) 22/128 on production
Highlights
Development well Dzheitune (Lam) 22/128 yielded a combined rate of 2,600 barrels of oil per day ('bopd') from the short and long strings following initial testing
Completion of well Dzheitune (Lam) A/129 is scheduled for August 2008
The CIS-1 rig will spud a further development well, Dzheitune (Lam) 22/130 shortly, which is scheduled for completion in October 2008.
Hussain M. Sultan, Executive Chairman, commented:
"I am pleased to announce the successful completion and initial testing of the Dzheitune (Lam) A/128 development well which was drilled from the Dzheitune (Lam) 22 platform using the CIS-1 rig. This is the fifth well we have completed this year on schedule and in line with Dragon Oil's drilling programme. We are confident that we will meet our 2008 targets for both the number of wells drilled and production."
Drilling Details
Initial testing of the Dzheitune (Lam) 22/128 well was completed on schedule. The well was drilled to a depth of 3,848 metres, with testing of the short and long strings resulting in production rates of 1,484 bopd and 1,116 bopd respectively. Further testing and optimisation is scheduled to take place over the next few weeks.
The Iran Khazar rig is currently drilling the 8 ½" hole section of the Dzheitune (Lam) A/129 well with completion expected in August 2008.
The CIS-1 rig has since skidded to slot 1 on the Dzheitune (Lam) 22 platform and will spud a further development well, Dzheitune (Lam) 22/130 shortly. This new development well has a target depth of 3,840 metres and is expected to come on production in October 2008.
Background Note
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
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 (+971 4 305 3600)
Leanne Denman, Investor Relations Officer
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