Dragon Oil Secures Astra Jackup for Cheleken Devt in Caspian Sea

Dragon Oil has signed a contract with BKE Shelf Limited to hire the Astra jackup rig for a period of six months commencing in November 2009 on favorable terms. The Group plans to use this jackup rig to drill two wells during the contract term. Dragon Oil has previously employed this rig on a short-term contract basis.

Dr. Abdul Jaleel Al Khalifa, Chief Executive Officer, commented, "I am pleased to report that Dragon Oil has secured the availability of the Astra jackup rig to drill two wells and to help achieve its production growth forecast. The Group remains committed to securing additional rigs on attractive terms for the development of the Cheleken asset."

Cheleken Reserves

In February 2009, Dragon Oil announced the results of the recent certification of its oil and condensate reserves in the Cheleken Contract Area in the Caspian Sea, offshore Turkmenistan. The certification was completed by Gaffney, Cline and Associates.

The latest reserves certification placed Cheleken's proved and probable (2P) reserves at 645 million barrels of oil and condensate and 3.2 tcf of gas resources. This certification incorporates the results of full field remapping for all the reservoir levels based on the 3D seismic survey conducted from 2004 to 2005.