Dragon Oil Pleased with Results at LAM 10 Platform

Dragon reports that well LAM 10/112 drilled from the refurbished LAM 10 platform in the Cheleken Contract Area, offshore Turkmenistan, has tested oil from Zones 4, 5 and 6 at a combined rate of 2,950 barrels of oil per day.

Well LAM10/112 was spudded on October 14, 2005 and drilled to a total depth of 3,629 meters in reservoir Zone 7. The well was successfully completed using a dual completion which enables two reservoir intervals, at different reservoir pressures, to be produced simultaneously.

Reservoir Zones 5 (lower part) and 6 were produced through the lower completion string and tested at a rate of 863 bopd. The upper part of reservoir Zone 5 and Zone 4 was produced through the upper completion string and tested at a rate of 2,087 bopd. Both intervals will be produced together.

The Iran Khazar jackup has been skidded to commence drilling the fourth well from the LAM 10 platform, well LAM 10/113. This well is planned to be drilled to a total depth of around 3,700 meters.

Hussain M. Sultan, Chairman of Dragon commented: "We are pleased with the result of well LAM 10/112 which was drilled using dual completion technology."

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