1st Oct 2007 13:06
Dragon Oil PLC01 October 2007 1 October 2007 PRESS RELEASE DRAGON OIL plc Dragon Oil Plc ("Dragon Oil") DRILLING UPDATE WELL A/122 ON PRODUCTION CIS-1 RIG SPUDS FIRST WELL FOR DRAGON OIL Highlights • NEW PRODUCTION HIGH of 39,637 barrels of oil per day ("bopd") achieved on 29th September 2007; • Dragon Oil's development well Dzheitune (Lam) A/122 is on production and yields an initial, combined flow rate of 3,563 bopd; • The 'Iran Khazar' jack-up drilling rig has moved to spud a further development well, Dzheitune (Lam) A/123; and • The 'CIS-1' platform-based drilling rig has spudded its first well, Dzheitune (Lam) 22/124, for Dragon Oil on 30th September. Hussain M. Sultan, Chairman and CEO of Dragon Oil, commented: "I am pleased to announce the successful completion and initial testing of theDzheitune (Lam) A/122 development well drilled from the Company's Dzheitune(Lam) A production platform. The flow rate from this well is very promising andcontinues to reflect the improved results that we have seen in other recentwells from this area of the field. I am also pleased to report a new peakproduction just short of the 40,000 bopd which we had targeted to reach by 2008. "The CIS-1 rig has spudded its first well for the Company from the Dzheitune(Lam) 22 production platform. This is an historic step for the Company as itwill now have at least two rigs drilling at the same time for the foreseeablefuture. Our focus will now be on mobilizing the Company's own Rig 40 as soon aspossible." Drilling update details Dragon Oil announces that it has completed its sixth well in the year to date,Dzheitune (Lam) A/122, which has been drilled from the Dzheitune (Lam) Aplatform using the 'Iran Khazar' rig. The well is yielding an initial flow rateof 3,563 bopd from the short and long strings. Testing of the individual shortand long strings resulted in initial production rates of 2,153 bopd (on 20/64thschoke) and 1,410 bopd (on 22/64ths chokes) respectively. The 'Iran Khazar' rig has since skidded to slot 5 on the Dzheitune (Lam) Aplatform and has spudded a further development well, Dzheitune (Lam) A/123. Thenew development well has a target depth of 4,100 metres. The 'CIS-1' rig has been mobilized fully and has spudded a development well,Dzheitune (Lam) 22/124, on the Dzheitune (Lam) 22 platform. The 'CIS-1' rig isplanned to drill a series of development wells from this platform and this newwell is the first in that series. The well has a target depth of 3,800 metres. Enquiries: Citigate Dewe Rogerson +44 207 638 9571Media enquiries: Martin JacksonAnalyst enquiries: George Cazenove Notes to Editors: (1) Dragon Oil is an international oil and gas development and production company, and its principal producing asset is in the Cheleken Contract Area, in the eastern section of the Caspian Sea, offshore Turkmenistan. Dragon Oil is listed on the London Stock Exchange and the Irish Stock Exchange ('DGO.') (2) Dragon Oil (Turkmenistan) Ltd., a wholly owned subsidiary of Dragon Oil plc, holds 100% interest in and is the operator for a 25-year base term of the Production Sharing Agreement ("PSA") for the Cheleken Contract Area. Development of the two oil producing fields, Dzheitune (Lam) and Dzhygalybeg (Zhdanov) in the Contract Area commenced in May 2000. Dragon has an exclusive right to negotiate an extension to the PSA for a further period of not less than 10 years. (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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