Further details of Contract Awards

13 May 2010

DRAGON OIL PLC

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

Further Details on Contracts Awarded for the Construction of Two New Platforms

Dragon Oil plc (Ticker: DGO), an international oil and gas exploration and production company, today announces further details regarding two contracts awarded for the construction of two new platforms in its Cheleken Contract Area, located in the Caspian Sea, off-shore Turkmenistan.

The first contract was awarded for the construction of the Dzhygalybeg (Zhdanov) A platform which will support both a land rig and jack-up rig. Up to 8 wells can be drilled from this platform which will be installed in the Zhdanov Field and is due to be completed in Q1 2012.

The second contract was awarded for the construction of the Dzheitune (Lam) C platform which will support a jack-up rig. Up to 8 wells can be drilled from this platform which will be installed in the Lam Field and is due to be completed in Q4 2011.

The contract for the construction of the Dzhygalybeg (Zhdanov) A platform was awarded to Caspian Energy Projects LLC., while the contract for the construction of the Dzheitune (Lam) C platform was awarded to ILK Insaat Taah, San. Ve.tic Ltd.

Dragon Oil expects to spend around US$ 250 million this year and around US$600-700 million in total on infrastructure projects in the planning period of 2010-12 including expenditure on these two new production platforms.

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

"I am pleased that Dragon Oil has awarded these contracts for the construction of two new platforms which can support a total of up to 16 new wells in the future. This is a significant investment in our infrastructure and will ensure that we are well placed to meet our production targets in the years to come."

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About Dragon Oil

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. The Company acquired interests in Blocks 35, 49 and R2 (10%) in the Republic of Yemen in December 2007.

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

Note

This statement 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.