Dragon Oil's Lam Well Knighted Dual Producer

Dragon Oil announced the completion and initial testing of the Dzheitune (Lam) 28/152 and B/153 development wells. The Dzheitune (Lam) 28/152 well was drilled to a depth of 3,768 meters and completed as a dual producer by the NIS rig. The short string tested at the initial rate of 2,091 barrels of oil per day ("bopd") with the long string testing at 1,372 bopd. The NIS rig has skidded to the next slot and spudded the Dzheitune (Lam) 28/154 well.

The Dzheitune (Lam) B/153 well was drilled by the Iran Khazar rig to the depth of 3,668 meters and completed with dual strings. The short string tested at the initial rate of 1,080 bopd while the initial test result from the long string was 1,348 bopd. The Iran Khazar rig has skidded to the next slot on the Dzheitune (Lam) B platform and spudded the Dzheitune (Lam) B/155 well.

Dr. Abdul Jaleel Al Khalifa, Chief Executive Officer, commented, "I am pleased to report the successful completion and solid initial test results of the Dzheitune (Lam) 28/152 and B/153 development wells, the first two wells of this year's 11-well drilling program to have been put into production. Both rigs, the NIS rig and the Iran Khazar rig, are already drilling the next two wells.

"Following the transition over to the new 30-inch trunkline and associated in-field pipelines, we are continuing to see strong average daily production rates in excess of 57,000 bopd in February and March 2011."

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