Dragon Oil Says LAM 21/107 Workover Successful

Dragon has successfully completed the workover of well LAM21/107 in the Cheleken Contract Area, offshore Turkmenistan. Reservoir intervals in Zone 4 and Zone 5 were perforated resulting in incremental production of 1,481 barrels of oil per day ('bopd'). The addition of new perforations is facilitated by the well's monobore completion design, which allows additional zones to be perforated at lower cost without running a new completion.

It is planned to continue the well workover program in 2005 with operations comprising both rigless perforation and a hydraulic workover unit.

Hussain M. Sultan, Chairman of Dragon commented: 'I am pleased with the success of the workover of well 21/107 which will deliver a useful contribution towards our production targets for 2005. The continuous drilling and workover programs will enable us to achieve consistent and improved performance.'