Dragon Oil Puts Third Well from Lam Field On Stream

Dragon reports that well Lam 22-103, the third development well to be drilled as part of Dragon's redevelopment of the Lam Field in the Cheleken block, was put on production on June 27, following which it was tested at a rate of 2,892 barrels of oil per day.

Well Lam 22-103 was completed in four zones and is currently producing oil from the upper two at a depth of 2,546 to 3,316m.

The current field production has reached approximately 12,000 bopd.

The rig was skidded, on June 29, 2002, to start drilling the fourth well, Lam 22-104 as part of the continuous drilling program. The well is currently drilling at a depth of 207 meters.

The abandonment and decommissioning program continues with the three most critical wells having been secured and cemented, two more wells have been secured prior to mobilization of a coiled tubing unit later in the year. The abandonment of these wells is part of Dragon's commitment towards environmental protection.

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