Dragon Oil Completes Workover on LAM 63/67 Well

Dragon announces the successful workover of well LAM63/67 which was re-completed with a hydraulic work-over unit. The workover of LAM 63/67 is part of the continuing well work-over program in the Cheleken Contract Area located in the Caspian Sea, offshore Turkmenistan. Well LAM 63/67, which was previously producing intermittent and low volumes, has achieved a substantial increase in production to a total of 1,338 barrels of oil per day ('bopd'), with low gas and zero water cut.

To date a total of seven wells have been worked over in 2004. All the wells worked over have a low water cut and low gas to oil ratio. The well work-over program will continue and it is planned that a further three wells will be worked over and re-completed this year using the hydraulic work-over unit.

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

'This further achievement in our well work-over program, together with the continuous drilling program, continues to increase production toward our end of year target. Well LAM 21/109, which has been completed, is currently under testing.'