Dragon Oil Completes LAM 21/107 Well

Dragon reports that drilling of well LAM 21/107 has been successfully completed. Well LAM 21/107 tested at a rate of 2,035 barrels of oil per day (bopd) from reservoir Zones 7, 8 and 9. The well is producing oil from five intervals (in the three Zones) at a depth of 4,051 to 3,583 meters. Wireline logs indicate further production potential of 2,000 bopd in reservoir Zone 4, giving a total production potential of 4,035 bopd for the well. Zone 4 was not flowed and tested at this time, due to pressure differentials.

Well LAM 21/107, is the second development well to be drilled on the refurbished LAM 21 platform in the Cheleken Contract Area, offshore Turkmenistan.

Well LAM 21/107 was spudded on February 29, 2004 as part of Dragon's continuous drilling program in the Cheleken block. It was drilled to a depth of 4,264 meters.

The jackup, Astra, has been skidded to spud the third development well LAM 21/108.

Hussain M. Sultan, Chairman of Dragon Oil commented:

'This is the second well to be drilled on the refurbished LAM 21 platform and we are extremely satisfied to have successfully drilled to a depth of 4,264 meters and achieved a test rate of 2,035 bopd, with the potential of additional production from a shallower reservoir interval. Once the pressure differentials are equated we will look to flow all the Zones.'