Dragon Finds Oil with LAM 10/111 Well Offshore Turkmenistan

Dragon reports that well LAM 10/111 on the refurbished LAM 10 platform in the Cheleken Contract Area, offshore Turkmenistan, has tested oil from Zones 4, 5 and 6 at a combined rate of 2,586 barrels of oil per day, ('bopd').

Well 10/111 was spudded on July 19, 2005 and drilled to a total depth of 3,544m MD (measured depth) in reservoir Zone 7. The well was successfully completed using dual completion which enables two reservoir intervals, at different reservoir pressures, to be produced simultaneously. This is the first time that Dragon has used dual completion technology.

Reservoir Zones 4 (lower part), 5 and 6 were produced through the lower completion string and tested at a rate of 1,506 bopd. The upper part of reservoir Zone 4 was produced through the upper completion string and tested at a rate of 1,080 bopd. Both intervals will be produced together.

The Iran Khazar jackup has been skidded to commence drilling the third well from the LAM 10 platform, well LAM 10/112. This well is planned to be drilled to a total depth of around 3,600 meters.

Hussain M. Sultan, Chairman of Dragon commented:
'We are pleased with the result of well LAM 10/111 and with the successful application of dual completion technology. It is planned to use this technology on future wells.'