Dragon Oil Extends Contract for Lukoil's Jackup

Dragon Oil has signed a further contract with LukOil Shelf Limited ('LukOil') which extends the provision of the Lukoil's jackup, Astra, on Dragon's LAM field in Turkmenistan through March 31, 2005.

The initial contract term was for Lukoil to provide the jackup rig from early November 2003 for eight months, with plans for up to four new wells to be drilled in that period.

Hussain M. Sultan, Chairman and CEO of Dragon, said:

'We are extremely pleased to have signed this extension to the contract with LukOil. Dragon is satisfied that it will achieve the objectives and timetable set out in the original contract term and by Lukoil and Dragon extending the term of the contract, it will enable Dragon's continuous drilling program in the Cheleken block to continue to March 2005, by which time the results of the marine 3D seismic survey for the LAM and the Zhdanov field are expected to have been interpreted.