Dragon Oil Tests Positive at Dzheitune 22/128, Drilling Continues

Dragon Oil plc has reported that the development well Dzheitune (Lam) 22/128 yielded a combined rate of 2,600 barrels of oil per day ('bopd') from the short and long strings following initial testing.

The Company also announced that the completion of well Dzheitune (Lam) A/129 Dzheitis is scheduled for August 2008, and the CIS-1 rig will spud a further development well, Dzheitune (Lam) 22/130 shortly, which is scheduled for completion in October 2008.

Hussain M. Sultan, Executive Chairman, commented, "I am pleased to announce the successful completion and initial testing of the Dzheitune (Lam) A/128 development well which was drilled from the Dzheitune (Lam) 22 platform using the CIS-1 rig. This is the fifth well we have completed this year on schedule and in line with Dragon Oil's drilling program. We are confident that we will meet our 2008 targets for both the number of wells drilled and production."

Drilling Details

Initial testing of the Dzheitune (Lam) 22/128 well was completed on schedule. The well was drilled to a depth of 3,848 meters, with testing of the short and long strings resulting in production rates of 1,484 bopd and 1,116 bopd respectively. Further testing and optimization is scheduled to take place over the next few weeks.

The Iran Khazar rig is currently drilling the 8 1/2 ' hole section of the Dzheitune (Lam) A/129 well with completion expected in August 2008.

The CIS-1 rig has since skidded to slot 1 on the Dzheitune (Lam) 22 platform and will spud a further development well, Dzheitune (Lam) 22/130 shortly. This new development well has a target depth of 3,840 meters and is expected to come on production in October 2008.


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