Turkmenistan: Dragon Oil Completes Testing of Dzheitune Wells

Dragon Oil plc , an international oil and gas exploration and production company, announces the completion and initial testing of both the Dzheitune (Lam) 13/144 and 28/146development wells together with the sidetrack of the Dzheitune (Lam) A/129 well.

Dzheitune (Lam) 13/144whichwas drilled to a depth of 3,434metres on a single completion basis by Rig 40,tested at an initial rate of 1,809 bopd. Rig 40 will now be cold-stacked on the Dzheitune (Lam) 13 platform and may be used for some additional workovers in future years.

Dzheitune (Lam) 28/146 which was drilled to adepth of3,200metres on a single completion basis by the NIS rig, tested at an initial rate of 2,311 bopd. This represents the first in a series of development wells to be drilled by the NIS rig from the Dzheitune (Lam) 28 platform. The NIS rig has now skidded to the next slot on the Dzheitune (Lam) 28 platform and has spudded the Dzheitune (Lam) 28/147 well.

The Iran Khazar rig has completed a sidetrack of the Dzheitune (Lam) A/129 well which was drilled to a depth of 1,815 metres on a single completion basis and has yielded incremental production of 1,140 bopd. This completes the planned workover programme for 2010. The Iran Khazar rig has since moved to the Dzheitune (Lam) B platform where it is planned to spud the Dzheitune (Lam) B/148 well, after first undergoing routine maintenance.

Dr Abdul Jaleel Al Khalifa, Chief Executive Officer, commented:

“I am delighted to report the successful completion and initial testing of both the Dzheitune (Lam) 13/144 and 28/146 development wells together with the sidetrack of the Dzheitune (Lam) A/129 well. This brings us to a total of six new development wells to date this year and we remain on target to complete 11 new wells in 2010.”

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.

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 in the Caspian Sea, offshore Turkmenistan. Operational focus is on the re-development of two oil producing fields, Dzheitune (Lam) and Dzhygalybeg (Zhdanov).

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Source: Dragonoil,July 20, 2010;