Kuwait Energy Discovers Oil at Faihaa-1 Well in Block 9 in Basra, Iraq

Dragon Oil plc, an international oil and gas exploration, development and production firm based in Dubai, United Arab Emirates, announced Wednesday that field operator Kuwait Energy has struck oil at Faihaa-1 exploration well in Block 9 in northern Basra, Iraq.

The successful discovery was made by the consortium, comprising Kuwait Energy and Dragon Oil in a 70-30 percent partnership, at the Mishrif formation at 8,858 feet (2,700 meters) in the Block 9 exploration well. Preliminary tests of the Faihaa-1 Mishrif formation resulted in a flow rate of circa 2,000 barrels of oil per day (bopd) of 20 degree API oil on 32/64 inch choke. The consortium will conduct more detailed testing on Mishrif towards the end of the year.

Kuwait Energy revealed that the consortium intends to continue drilling activities, exploring deeper horizons and collecting further data to fully evaluate the discovery and to define an appraisal plan.

"We are pleased to report along with our operating partner Kuwait Energy an oil discovery in the first target, the Mishrif formation, in Block 9, Iraq. This represents the first significant success in Dragon Oil's exploration portfolio. Drilling continues towards the second target, which will be tested later this year, and we look forward to a full evaluation of the discovery and the drawing up of a block appraisal plan by the consortium." Dr Abdul Jaleel Al Khalifa, Dragon Oil's CEO said in the press release.