17th Dec 2007 09:55
Dragon Oil PLC17 December 2007 17 December 2007 DRAGON OIL plc ("Dragon Oil" or the "Company") Farm-in Agreement Dragon Oil Plc, the international oil and gas development and productioncompany, is pleased to announce that, in line with its corporate strategy, thecompany has agreed, (subject to certain required approvals), to acquireinterests in Blocks 35 (10%), 49 (up to 10%) and R2 (10%) in the Republic ofYemen from Virgin Resources Limited. This is a significant step forward in the company's strategy to achieve greaterportfolio diversification. Management firmly believes that Dragon Oil will beable to utilise this valuable new foothold in Yemen as a platform from which toaccelerate growth and to expand further within the region. A drilling programme for Blocks 49 and R2 is under way, with up to 6 prospectsbeing drilled as part of the first phase of development. Yemen has an extensive and stable oil and gas infrastructure, which will enableearly low cost production and cost effective drilling. In addition, the countryhas proven remaining reserves of over 1 billion barrels of oil with facilitiesto load super tankers through modern pipelines. Mr. Hussain M. Sultan, Chairman & Chief Executive, commented: "This farm-in agreement emphasises our continued commitment to securing futuregrowth and value for Dragon Oil's shareholders. We look forward to working withVirgin Resources Limited and developing what we see as a first step towardsgreater diversification and geographic expansion. The management team willcontinue to actively pursue acquiring new assets which will enhance and furtherdiversify Dragon Oil's portfolio." For further information please contact: PressCitigate Dewe Rogerson (+44 20 7638 9571)Martin JacksonGeorge Cazenove Investor and AnalystDragon Oil Plc (+971 4 305 3600)Leanne Denman, Investor Relations Officer Background Note Dragon Oil Plc is an innovative international oil and gas development andproduction company, quoted on the London and Irish Stock exchanges ("DGO"). Itsprincipal producing asset is in the Cheleken Contract Area, in the easternsection 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 Agreementfor 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). In addition, Dragon Oil now owns 10%participating interests in blocks 35, 49 and R2 in the Republic of Yemen. www.dragonoil.com This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
DGO.L