29th May 2007 10:57
Dragon Oil PLC29 May 2007 UPDATE - 3D SEISMIC SURVEY Highlights • Completion of the full set of structural maps for the key reservoir levels expected by the end of June 2007; • Completion of the static models of both the Dzheitun ('LAM') and Dzhygalybeg ('Zhdanov') fields expected by the end of 2007; and • Completion of the first phase of dynamic simulation modeling, an update to the fields' reserves and incorporation in the Field Development Plan ('FDP') expected by mid-2008. Hussain M. Sultan, Chairman and CEO of Dragon commented: "I am pleased to provide an update of the Company's efforts to interpret the 3Dseismic data relating to the Cheleken Contract Area. The completion of thisproject is very important to the long-term development of the Cheleken field andto the Company as a whole. We are making good progress and we expect to havesubstantially completed interpretation by the end of the year." Enquiries: Citigate Dewe Rogerson +44 207 638 9571 Media enquiries: Martin Jackson / George Cazenove Analyst enquiries: Nina Soon 3D Seismic update details During 2004, the Company acquired a full-block 3D seismic programme (652 kms2)across both the LAM and Zhdanov fields. This data was then processed and madeavailable for interpretation in the fourth quarter of 2005. A preliminaryinterpretation of the time-migrated data set was initiated at this time and theresultant maps were used by the Company's Reservoir Development team to positionthe LAM A platform and to identify the potential for hydrocarbons in the LAMWest structure. As announced in recent releases, both of these areas have tested positively forhydrocarbons, by way of well A/119 and well 28/120 respectively. In spite ofthese successes, the Company recognized there were significant imaging problemsof the time migrated seismic data set due to the structural complexity of thefields. To overcome these problems, a full depth migration of the data wasrequired and this was received in late 2006 with a significant improvement inthe data quality. Presently, the Reservoir Development team is working with external consultantsto complete a full set of maps at three key reservoir levels by the end of June2007. In the meantime, the 3D seismic data is being used on a daily basis toassist with the planning/placement of new well locations. These maps will be thefirst input into a major exercise of subsurface (static and dynamic) reservoirmodelling which will commence in the second half of 2007. The results of themodelling efforts, coupled with the integration the data from the new wells tobe drilled in 2007/08, will be used as the basis for an update of thehydrocarbon volumes, recoverable reserves and will incorporated in the FDP. Thiswill be undertaken during 2008. Ends Notes to Editors: (1) Dragon Oil plc is an independent oil and gas exploration and productioncompany with interest in the Caspian Sea, Turkmenistan. Dragon is listed on theLondon Stock Exchange and the Irish Stock Exchange ('DGO.') (2) Dragon Oil (Turkmenistan) Ltd., a wholly owned subsidiary of Dragon Oilplc, holds 100% interest in and is the operator for a 25-year base term of theProduction Sharing Agreement ("PSA") for the Cheleken Contract Area. Developmentof the two oil producing fields, LAM and Zhdanov in the Contract Area commencedin May 2000. Dragon has an exclusive right to negotiate an extension to the PSAfor a further period of not less than 10 years. (3) For further information on Dragon see www.dragonoil.com This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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