Dragon Oil Restores Production Flow at Dzheitune

Dragon Oil's development well Dzheitune (Lam) 22/126 yields a rate of 1,602 barrels of oil per day ('bopd') on the short string and a rate of 1,193 bopd on the long string.

Dragon Oil restores the production flow from the well Dzheitune (Lam) 28/120.

Hussain M. Sultan, Chairman and CEO of Dragon Oil, commented, "I am pleased to announce the successful completion and initial testing of the Dzheitune (Lam) 22/126 development well, drilled from the Dzheitune (Lam) 22 platform. The results from the well are in line with our forecasted production rates. This is the second well completed by the platform-based drilling rig, the CIS-1, and we now have a greater understanding of the rig's capabilities.

"Dragon Oil has also managed to overcome the difficulties posed by the unusually cold weather in Turkmenistan this winter and has restored the flow from the well Dzheitune (Lam) 28/120. This is an important well for Dragon Oil, situated as it is in the Dzheitune (Lam) West structure, and we will continue to monitor the production from the well closely."

Drilling Details

Initial testing of the well 22/126, which was drilled to a depth of 4,307 metres, has been completed successfully with a dual completion. The short string tested at a rate of 1,602 bopd on a 20/64ths choke whilst the long string tested 1,193 bopd on a 12/64ths choke. The CIS-1 drilling rig is currently skidding to well Dzheitune (Lam) 22/128 and will commence drilling shortly.

The Iran Khazar jack-up drilling rig is drilling a development well, Dzheitune (Lam) A/127, and to date has reached a depth of 3,278 metres (with a target depth of 4,164 metres). The Iran Khazar rig is expected to complete the well during June 2008.

Operational Update Details

Dragon Oil has restored the production flow from the well Dzheitune (Lam) 28/120 which had been shut-in since early March as a result of technical problems arising from the extreme weather conditions in Turkmenistan. The well had been shut-in while Dragon Oil personnel assessed the impact of the cold weather on the production of the crude oil from this well. The well has now been restored to full production after the installation of a new coflex alternate pipeline from the Dzheitune (Lam) 28 platform whilst work is on-going to improve the flow through the existing infield pipeline.


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