Dragon Oil Reaches Peak Production in Cheleken Contract Area

Dragon Oil has commissioned its first wellhead and production platform in the LAM field. A Gross peak production record of 28,025 barrels of oil per day ('bopd') has been achieved.

The company says its 16th development well, 13/116, has been completed using the Astra jackup from the LAM 13 platform. The well was tested and is producing 2,501 bopd.

The workover of well 22/22 has been successfully completed from the LAM 22 platform, using the hydraulic workover unit, and the well is producing 1,210 bopd. A production gain of 808 bopd has been obtained from the successful wireline workover of well 10/57 from the LAM 10 platform; and the Astra has spudded a second development well, 13/118, from the LAM 13 platform.

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

'There has been a big push within Dragon throughout 2006, both in terms of increasing production and improving infrastructure. In particular, the Company has installed the new LAM 'A' platform and it is now ready for drilling. We expect the Iran Khazar jackup to start drilling a series of development wells from it shortly. Construction of this platform is a major achievement and opens new and exciting opportunities for Dragon in 2007.

I am particularly pleased that we have reached a new peak production of over 28,000 bopd for the Cheleken Contract Area offshore Turkmenistan as a whole. We have pushed on from earlier peaks and continued to achieve new milestones for the Company.

It is also pleasing that the Company has two jackups working simultaneously for the first time in Dragon's history and that the Astra rig has completed its first well. The Company completed four wells during 2006 and is now close to completing another development well. We are working on keeping both jackups for as much of 2007 as possible, enabling us to further accelerate our development program.'

For More Information on the Offshore Rig Fleet:
RigLogix can provide the information that you need about the offshore rig fleet, whether you need utilization and industry trends or detailed reports on future rig contracts. Subscribing to RigLogix will allow you to access dozens of prebuilt reports and build your own custom reports using hundreds of available data columns. For more information about a RigLogix subscription, visit www.riglogix.com.