The recently announced successful re-entry, sidetrack and completion of its development well LAM 21/106 drilled on the refurbished LAM 21 platform was achieved despite the technical difficulties encountered in the first quarter of the year.
Well workovers during 2004 have yielded excellent results and due to the expanded program these workover wells are now contributing significantly to the production from the Cheleken Block. Dragon plans to further expand the workover program in 2005.
Despite delays in the 3-D seismic survey resulting from adverse weather conditions, the acquisition of the key Stage 1 area of LAM Field and western Zhdanov Field has been completed. This data is under fast-track processing in the UK and will be used to select the location of a new wellhead and production platform to be installed in 2006 as part of the continued field development. The 3-D seismic survey continues over Zhdanov Field, comprising the Stage 2 area, and is due to be completed in 2005.
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