Dragon Oil Completes Fourth Well in Lam Field

Dragon Oil has completed testing of well Lam 22-104, the fourth development well to be drilled as part of the Company's redevelopment of the Lam Field in the Cheleken block, Turkmenistan. Well Lam 22-104 tested at a cumulative rate of 3,956 barrels of oil per day. The well was completed in five zones and is producing oil from the upper two zones at a depth of 2,367 to 2,989 meters. The well has now been put into production. The rig has been skidded to start drilling the fifth well, Lam 22-105 as part of the 2002 continuous drilling program.

Hussain M. Sultan, Chairman of Dragon Oil commented: 'This is the third well put into production this year and Lam 22-104 production brings us closer to our target production of 15,000 bopd by the end of 2002. We are very satisfied to have achieved further reductions in our drilling and overall costs and we shall continue with our efforts to increase production.'