Turkmenistan: Dragon Oil to Start Production from Dzheitune Well Before Quarter End

Dragon Oil plc , an international oil and gas exploration and production company, announces the completion and initial testing of the Dzheitune (Lam) 28/154 development well. The Dzheitune (Lam) 28/154 well was drilled to a depth of 1,830 metres and completed as a single producer by the NIS rig.

The initial test result from the well was 3,081 barrels of oil per day (“bopd”). The NIS rig has skidded to the next slot and spudded the Dzheitune (Lam) 28/156 well.

The Iran Khazar rig (photo) is currently drilling the Dzheitune (Lam) B/155 well, which Dragon expects to put into production towards the end of 2Q11.

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

“I am pleased to report that Dragon Oil has successfully completed and conducted initial testing of the flow rate from the Dzheitune (Lam) 28/154 development well; one more well is to be put into production before the end of this quarter.”

About Dragon Oil

Dragon Oil plc is an 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. The operational focus is on the re-development of two oil-producing fields, Dzheitune (Lam) and Dzhygalybeg (Zhdanov).

Source: Dragon Oil, May 10, 2011

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