Dragon Begins Says LAM 10/113 Well Tests Oil from Four Zones

Dragon reports that well LAM 10/113 drilled from the refurbished LAM 10 platform in the Cheleken Contract Area, offshore Turkmenistan, has tested oil from Zones 3, 4, 5 and 6 at a combined rate of 3,453 barrels of oil per day, ('bopd').

Well LAM 10/113 was spudded on December 29, 2005 and drilled to a total depth of 3,753 m in reservoir Zone 7. A dual completion was successfully installed in the well, which enables two reservoir intervals at different pressures, to be produced simultaneously. This is the third well that has used successfully dual completion technology in the Cheleken Contract Area.

Reservoir Zone 3 and the upper part of Zone 4 were produced through the upper completion string and tested at a rate of 2,774 bopd. Reservoir Zone 4 (lower part), Zone 5 and 6 were produced through the lower completion string and tested at a rate of 679 bopd. Both intervals will be produced together. This is the first time that oil has been found in the Zone 3 reservoirs in the LAM 10 sector of the field.

The Iran Khazar jackup has been skidded to commence drilling the fifth well from the LAM 10 platform, well LAM 10/114. This well is planned to be drilled to a total depth of around 5,030 meters.

Hussain M. Sultan, Chairman of Dragon commented:
'We are very pleased with the results of well LAM 10/113 and particularly that oil has been discovered in Zone 3.'

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