Dragon Oil Says Cheleken 3D Survey Completed

Dragon reports the successful completion of its marine 3D seismic survey in the Cheleken Contract Area, Turkmenistan. In December 2003, Dragon raised US$18 million before expenses by way of a private placement largely with new and existing institutional investors, principally to fund the marine 3D seismic survey.

A total of 653.8 square kilometers of data has been acquired over the LAM and Zhdanov fields and includes the fields' undrilled structures.

A portion of the seismic data on the LAM field has already been 'fast-track' processed and interpreted, and the results will be utilized to select the location of a new wellhead and production platform to be installed in 2006.

Processing of the full seismic dataset is currently in progress and this will be followed by interpretation and re-mapping, expected to be completed in 1Q 2006. In addition to identification of new drilling opportunities Dragon expects the marine 3D seismic survey to provide a clearer picture of the fields' internal reservoir architecture, and thereby improve identification of drilling targets and reduce uncertainty.

Hussain M. Sultan, Chairman of Dragon commented:

'This is a key milestone in our development of the Cheleken Contract Area, which will lead to an improved understanding of it. We have fast tracked the processing of some of the data for the LAM field so that we can identify the location of a new wellhead and production platform.

We anticipate that the marine 3D seismic survey results, together with the workover program and continuous drilling program, will be an important contributor in our drive to increase production.'

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