Dragon Oil Begins LAM Field Workover Program

Dragon has commenced a work-over program for various wells in its LAM Field in the Cheleken Contract Area, offshore Turkmenistan. These old wells were drilled prior to Dragon signing its production sharing agreement and more recent drilling and have significant potential for untapped behind-pipe reserves. New reservoir intervals will be logged and perforated, and three of the wells will be re-completed using a hydraulic work-over unit supplied by contractor High Arctic.

The first well, LAM 75/78 has already shown a substantial increase in production from 150 barrels oil per day before work-over, to 1,333 barrels oil per day after new perforations were added. A low water cut of 0.4% and low gas to oil ratio of 562 standard cubic feet per barrel of oil indicates that this is a new, untapped reservoir.

Hussain M. Sultan, Chairman of Dragon Oil commented:

'This is an excellent start to the work-over program. Work-over of the old wells in our LAM field provides an opportunity to increase production levels at relatively low cost.'