Production Growth Guidance Update

25 June 2014

DRAGON OIL PLC

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

Production Growth Guidance Update

Dragon Oil plc (Ticker: DGO), an international oil and gas exploration, development and production company, publishes an update on the guidance for the 2014 gross annual production growth in the Cheleken Contract Area, Turkmenistan.

In the second quarter of 2014, Dragon Oil completed two sidetracks and is currently completing two development wells, the results of which will be reported in the quarterly drilling update at the beginning of July. The sidetrack drilled from the Dzheitune (Lam) 4 platform to appraise the location for the Dzheitune (Lam) H platform encountered water and will be side-tracked in the future. We anticipate that recoverable reserves attributed to this area to be downgraded; however, we expect that this will be balanced by addition of reserves from drilling results we are seeing in the A-sands, jet pump application and water injection pilot project.

Taking into account the performance in the first half of the year and our forecasts for the second half of the year, we now expect the average gross production growth from the Cheleken Contract Area to be in the range of 5% to 10% in 2014. We re-iterate our drilling programme of between 14 and 16 wells, most of which will come into production in 2H 2014; we expect to exit at 87,000-90,0000 bopd in 2014 and maintain our guidance for an exit rate of 100,000 bopd in 2015.

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Martin Jackson

About Dragon Oil

Dragon Oil plc is an international oil and gas exploration, 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.

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 and gas producing fields, Dzheitune (Lam) and Dzhygalybeg (Zhdanov).

The Group has exploration blocks in Tunisia, Iraq, Afghanistan, Egypt and the Philippines. Dragon Oil's diversification strategy is to add exploration and production assets within Africa, parts of Asia and the Middle East in order to create a diversified and balanced portfolio of assets for the Group.

www.dragonoil.com

Disclaimer

This news release 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.