Dragon Oil Carries Out Production Testing in Caspian Sea

Dragon Oil announced that the production testing programme on the Lam 22-102 well commenced on Friday 18 January and will continue for approximately 10 days. The well has been completed with a production string that will enable testing and production from 4 separate zones. Each zone will be tested separately to determine the optimal way in which to produce the well. Oil has been produced from the first zone being tested, which lies between 3300 and 3338 meters over which 18 meters of sand were perforated. This zone is the same one being produced in the Lam 22-101 well and the results indicate they are in pressure communication but in this case it is oil bearing rather than gas condensate. Testing of the other three zones in the well will be completed during the coming week. The Company also stated that the newly installed 10 inch pipeline from the Lam 22 platform to the main trunk line has been commissioned and is ready to receive production from the Lam 22 wells. Up to six wells can be drilled from Lam 22 platform and it is the intention that further drilling will be carried out from new platform locations. Ian Baron, Chief Executive of Dragon Oil, commented: 'This represents continued good progress. However we have some further production tests to complete before we announce the final results of this second well. The data we have gathered from these first wells is excellent and will help tremendously in the drilling and completing of future development wells.'

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