Dragon Oil Posts Initial Test Rates for Lam Well

Dragon Oil plc, an international oil and gas exploration, development and production company, published the results of successful completion and initial testing for the Dzheitune (Lam) C/175 development well and an update on the results and work at the Dzheitune (Lam) 13/171 well.

The Dzheitune (Lam) C/175 well was completed as a single producer to a depth of 1,691 feet (2,721 meters). The well tested at an initial production rate of 1,420 barrels of oil per day ("bopd") from the deep layers. This is an excellent result for these layers. The shallow layers, which were also targeted for this well, contained oil bearing sands as predicted by the geological model; however, these zones were between gas and water formations and the decision was made to perforate these sands at a later stage. Hence, the well was completed with a single string. The results of this well will help in optimizing locations of future wells in this platform.

The drilling rig has been mobilized to the Dzheitune (Lam) A platform and is now drilling the Dzheitune (Lam) A/176 development well.

The Dzheitune (Lam) 13/171 development well, which was drilled on the Dzheitune (Lam) 13 platform to a depth of 1,798 feet (2,893 meters) and did not yield commercial oil rates, is being considered for conversion into a water injector-type well in the Dzheitune (Lam) 13 area. This will be the second water injection project besides the pilot Dzheitune (Lam) 75 area. The Dzheitune (Lam) 13 area has been producing for many years and is due for pressure support, which could help enhance the production potential and reserves in this area.

The land rig will be stacked on the platform pending the evaluation of options for its further use. The leased land rig is undergoing maintenance in preparation for spudding the Dzheitune (Lam) 28/177 development well later this month.