4th Jan 2008 07:00
Dragon Oil PLC04 January 2008 DRAGON OIL plc ("Dragon Oil" or the "Company") Production and Drilling Update Production Exceeds Target of 40,000 bopd Highlights • New gross peak production record of 40,038 bopd achieved Dzheitune (Lam) A/123 is now on production yielding an initialcombined flow rate of 3,284 bopd; • The 'Iran Khazar' jack-up drilling rig has moved to spud a furtherdevelopment well, Dzheitune (Lam) A/125; and • Dzheitune (Lam) 22/124 has reached TD and is currently beingcompleted by the CIS-1 platform-based drilling rig. Hussain M. Sultan, Chairman and CEO of Dragon Oil, commented: "I am very pleased to report that we have delivered on our promise to achieve aproduction rate of 40,000 bopd by 2008. A new record production of 40,038barrels of oil was achieved on 31st December 2007 concluding Dragon's year on ahigh note and enabling us to look forward to 2008 with optimism for continuedprogress. "This success is due to the completion of the initial testing of the Dzheitune(Lam) A/123 development well drilled from our Dzheitune (Lam) A productionplatform. The flow rate from this well is consistent with the results from theprevious three wells drilled in this area." "I am also pleased to announce that we were honoured with a very positivemeeting with the President of Turkmenistan on 26th December 2007. HisExcellency, the President expressed his support for Dragon Oil's strategy toincrease oil production as well as our plans for the utilisation of theconsiderable gas resources contained in the Cheleken Contract Area." Drilling update Dragon Oil announces that it has completed its seventh well during 2007,Dzheitune (Lam) A/123, which has been drilled from the Dzheitune (Lam) Aplatform using the 'Iran Khazar' rig. The well yielded an initial flow rate of3,284 bopd from the short and long strings. Testing of the individual short andlong strings resulted in initial production rates of 1,750 bopd and 1,534 bopdrespectively. The 'Iran Khazar' rig has since skidded to slot 3 on the Dzheitune (Lam) Aplatform and has spudded a further development well, Dzheitune (Lam) A/125 witha target depth of 4,390 metres. The 'CIS-1' rig is currently completing the development well, Dzheitune (Lam) 22/124, on the Dzheitune (Lam) 22 platform. Upon completion of this well, the 'CIS-1' rig will drill three additional development wells from this platformbefore moving to the Dzheitune (Lam) 28 platform. Background Note Dragon Oil Plc is an innovative international oil and gas development andproduction company, quoted on the London and Irish Stock exchanges (Tickersymbol: DGO). Its principal producing asset is in the Cheleken Contract Area, inthe eastern section of the Caspian Sea, offshore Turkmenistan and recentlyacquired interests in Blocks 35, 49 and R2 (10%) in the Republic of Yemen. 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). www.dragonoil.com For further information please contact: Media enquiriesCitigate Dewe Rogerson (+44 20 7638 9571)Martin JacksonGeorge Cazenove Investor and Analyst enquiriesDragon Oil Plc (+971 4 305 3600)Leanne Denman, Investor Relations Officer This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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