22nd May 2007 09:35
Dragon Oil PLC22 May 2007 DRILLING UPDATE - WELL 28/120 ON PRODUCTION Highlights • NEW HIGH of 33,716 barrels of oil per day ("bopd") achieved on 21 May2007; • Dragon Oil's successful FIRST APPRAISAL WELL 28/120 yields an initialflow rate of 3,014 bopd from the first phase of perforation and testing; • Well 28/120 is the first of Dragon Oil's planned appraisal wells andis its first well on the Djeitun (LAM) West structure; • There will be further perforation and testing of additional zones onwell 28/120 in due course, which are expected to yield additional production. Hussain M. Sultan, Chairman and CEO of Dragon Oil, commented: "I am pleased to announce the successful completion and testing of the Djeitun(LAM) 28/120 appraisal well. This well was drilled from the Djeitun (LAM) 28platform in order to appraise the potential for commercial hydrocarbons in theDjeitun (LAM) West part of the Cheleken Contract Area. The results from thiswell are particularly encouraging because this is the first time that thisstructure has tested significant oil. The well also confirms significant oilpotential in other reservoir zones, which will be perforated at a later date.This success gives me confidence that the Djeitun (LAM) West structure ispromising and that there is sufficient data for further development in thisarea. I am also very pleased that we have reached a new gross peak production well inexcess of 33,000 bopd. This rewards the great efforts being put in by theCompany personnel to improve production from its asset and reflects verypositively on the Company's ability to meet its stated goals." Enquiries: Citigate Dewe Rogerson +44 207 638 9571Media enquiries: Martin Jackson / George CazenoveAnalyst enquiries: Nina Soon Drilling update details Following on from the recent announcement that drilling of the Company's firstappraisal well 28/120 had been completed on the Djeitun (LAM) West structure,Dragon Oil announces the results of initial testing of the well. The first phaseof testing of reservoir zones 4, 6 and 8 has yielded an initial flow rate of3,014 bopd. Interpretations of reservoir zones 2 and 3 have suggested that there aresignificant, additional hydrocarbon-bearing zones in the well; however,perforation and testing of these zones has not yet commenced. Additional testresults will be announced in due course but the results confirm the earlierinterpretation of the Djeitun (LAM) West structure and the potential for futuredrilling. Ends 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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