23rd Dec 2009 07:01
For immediate release
23 December 2009
DRAGON OIL PLC
(the "Company" or together with its subsidiaries "Dragon Oil" or the "Group")
Contract for a platform-based rig awarded
Dragon Oil plc (Ticker: DGO), an international oil and gas exploration and production company, announces that it has awarded a two-year contract to Naftna Industrija Srbije (NIS) Naftagas for the lease and management of a land rig (the "NIS Rig" and formerly known as "CIS Rig 1") in the Cheleken Contract Area.
The Group previously employed the rig (CIS Rig 1) under a different contractor to drill from the Dzheitune (Lam) 22 platform. Dragon Oil released the CIS Rig 1 with the intention to secure a platform-based rig with higher specifications. However, during the tendering processes, Dragon Oil recognised the challenges of sourcing such a rig taking into account mobilisation time, contract terms and the Group's standard requirements. It was, therefore, considered in the Group's best operational interests to proceed with the same rig but at more favorable contract terms and conditions.
The Group plans to drill seven wells using the NIS Rig during its contract term. The rig is to be mobilised to the Dzheitune (Lam) 28 platform shortly.
Dr Abdul Jaleel Al Khalifa, Chief Executive Officer, commented:
"I am pleased to announce that Dragon Oil has awarded the contract for the lease and management of the NIS platform-based rig for a period of two years. We have now secured three full-time rigs alongside the Astra jack-up rig, which is contracted on a short-term basis to support our drilling programme in the Cheleken Contract Area."
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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.
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