18th Jan 2005 10:39
Dragon Oil PLC18 January 2005 PRESS RELEASE DRAGON OIL Dragon Oil Plc ("Dragon" or the "Company") Operations Update Dragon is pleased to announce that progress on the new build Lam A wellhead andproduction platform and the new processing facility is continuing as planned.The platform forms part of Dragon's development of the LAM Field in the ChelekenBlock, offshore Turkmenistan. The processing facility is being located onshoreof the Cheleken Block and is expected to have the capacity to process up to50,000 barrels oil per day (bopd), together with associated gas and water fromthe offshore LAM Field. Both the platform and the processing facility areplanned to be commissioned in 2006. Dragon has signed a contract with an initial two year term with the NationalDrilling Company of Iran for the Iran Khazar jack-up rig. The rig is expected tobe mobilized to the Cheleken Block in March 2005 to drill from the LAM 10platform. Production from the LAM Field continues to be maintained above 20,000 bopd,together with approximately 48 million standard cubic feet of gas per day.Following a concept design study for gas utilization conducted last year, Dragonplans to proceed with a review of the development and marketing alternatives. Dragon has completed its 2004 workover of seven wells achieving totalincremental production of 6,979 bopd, following choke optimization. The workoverof the last well in the programme, LAM 86/86, has been temporarily suspended dueto technical problems and may be re-entered in the future. The workoverprogramme will continue in 2005. Hussain M. Sultan, Chairman of Dragon Oil, commented: "I am very pleased that production is currently being maintained above the20,000 bopd level. The new build LAM A platform, new processing facility andjack-up rig contract underscore Dragon's commitment to develop the LAM Field andfurther increase production levels. The Company will also focus on gasdevelopment and marketing alternatives this year". Ends Inquiries: Citigate Dewe Rogerson +44 207 638 9571 Martin Jackson Date: 18th January 2005 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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