Dragon Oil Awards Seismic Contract to PetroAlliance

Dragon has signed an agreement with PetroAlliance Services Company Limited for the provision of marine 3D seismic acquisition services, in Dragon's Cheleken Block offshore Turkmenistan.

PetroAlliance has been awarded a contract to provide Ocean Bottom Cable ('OBC') marine 3D seismic acquisition services in Dragon's Cheleken block in Turkmenistan. The survey will cover 652 square kilometers, which is the entire area of LAM and Zhdanov fields. The survey will be completed in 2004.

Chairman Hussain M. Sultan commented: 'The signing of the agreement with PetroAlliance for the OBS 3D seismic survey is a significant step for Dragon in our efforts to develop our Cheleken fields LAM and Zhdanov. We look forward to the early commencement of the survey in May 2004.

A 3D seismic has always been of the utmost importance to the successful development of the Cheleken fields. It is thanks to the efforts of the Company, the Aton Capital Group and corporate sponsors Davy, in introducing new shareholders in last December's US$18 million equity placing that has made this possible.

Whilst our new drilling has predominantly been located in the LAM field a 3D seismic survey of our entire block will allow us the opportunity to further best assess where our drilling should be located.

We are optimistic that with a 3D seismic survey we are much better placed to carry out our continuous drilling program.'