26th May 2005 12:05
Dragon Oil PLC26 May 2005 DRAGON OIL PLC ("Dragon") Operations Update Dragon announces that testing of well LAM 10/110 has been temporarily suspendeddue to perforation guns having become stuck in the well during perforation ofthe third test interval. Well LAM 10/110 is the first development well to bedrilled from the LAM 10 platform in the LAM Field, Cheleken Contract Area,located offshore Turkmenistan. The testing in reservoir zones 8 and 9 flowedoil, and indications are that there are substantial hydrocarbons in zones 4, 5and 6, and after the retrieval of the guns these will be tested. Specialised equipment is being immediately mobilised to retrieve the guns andre-complete the well. This equipment is expected to arrive in early June. The Iran Khazar jack-up rig will be skidded to drill the upper 26" and 16" holesections of the next well LAM 10/111. Upon arrival in the LAM Field of theequipment the rig will be skidded back to well LAM 10/110 to retrieve the gunsand to re-complete the well. Dragon plans to mobilise a second hydraulic workover unit (HWU) to the ChelekenContract Area. It is planned that both HWU units will work continuously duringthe remainder of 2005 and 2006. The first HWU will workover wells in the LAMField and the second HWU will workover wells in the Zhdanov Field. This is thefirst time that Dragon will conduct workover operations in the Zhdanov Fieldsince the start of the PSA in 2000. Inquiries: Citigate Dewe Rogerson+44 207 638 9571Martin Jackson 26 May, 2005 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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