Dragon Sees Continued Success with Well Work-Over Program

Dragon is pleased to announce that its well work-over program has continued successfully with the testing of the fourth and fifth wells in the program (well LAM63/85 and well LAM63/64). The wells tested at 918 barrels of oil per day (bopd) with less than 1% water and 348 bopd with 12.4% water respectively. Total incremental production from the work-over program since mid June now exceeds 3600 bopd.

In June 2004, Dragon 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 have significant potential for untapped reserves.

The work-over program will continue as previously reported, with three of the upcoming wells planned to be re-completed using a hydraulic work-over unit. The expected time for program completion remains the fourth quarter of this year.