Dragon Oil Begins 2005 Well Workover Program

Dragon reports that its 2005 well workover program has begun successfully with the workover of well LAM21/108 in the Cheleken Contract Area, offshore Turkmenistan. Reservoir intervals in Zone 3 were perforated resulting in a net production gain of 879 barrels of oil per day ('bopd'). Wireline logs indicate further production potential in reservoir Zones 4 and 5 and because of pressure differentials these intervals will be perforated at a future date.

Following the success of the well workover program in 2004, it is planned to continue the program in 2005, with operations comprising both rigless perforation and a hydraulic workover unit.

Dragon's production remains above 20,000 bopd.

Hussain M. Sultan, Chairman of Dragon commented:

'This is an encouraging start to our 2005 well workover program which together with the continuous drilling program on the LAM10 platform will further increase our production levels.'