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Dragon Oil Updates Ops at Lam Well

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Dragon Oil plc, an international oil and gas exploration, development and production company, published a quarterly update on the wells completed and tested in the first quarter of 2013.

The Dzheitune (Lam) 28/178 well, in the Cheleken Contract Area offshore Turkmenistan, was completed as a single producer to a depth of 6,594 feet (2,010 meters) and tested in February 2013. The well tested at an initial production rate of 1,653 barrels of oil per day (bopd). This well is currently stabilized and producing at a rate of 2,065 bopd. The jackup rig is currently drilling the Dzheitune (Lam) 21/180 and 21/181 development wells in a batch drilling mode.

The Dzheitune (Lam) 28/179 well was also completed as a single producer in March 2013. The depth of the well was 6,184 feet (1,885 meters) and the well tested for initial production of 1,975 bopd. This well is presently producing at a rate of 2,218 bopd. The land rig is currently drilling the Dzheitune (Lam) 28/182 well.

The average field production for 1Q 2013 was 71,800 bopd (1Q 2012: 70,600 bopd). The average production for March 2013 was 74,000 (March 2012: 72,000 bopd) with the quarter's exit rate at approximately 76,400 bopd.

We reiterate our guidance for the growth rate for the full year 2013 to be at the lower end of the medium-term growth rate of 10 to 15 percent.


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