DGO.L Regulatory News (DGO)

9 January 2014

DRAGON OIL PLC

(the "Company" or together with its subsidiaries "Dragon Oil" or the "Group")

Drilling and Production Update

· Dzheitune (Lam) C/185 well tested at an initial combined rate of 3,727 barrels of oil per day

· Dzheitune (Lam) C/186 well tested at an initial combined rate of 2,933 barrels of oil per day

· Average gross production in 2013 reached 73,750 bopd, a 9.1% increase over the corresponding 2012 average gross production

Dragon Oil plc (Ticker: DGO), an international oil and gas exploration, development and production company, today publishes an update on the wells completed in the Cheleken Contract Area in Turkmenistan in the fourth quarter of 2013 and production numbers for 2013 and December 2013.

Since the previous quarterly drilling update on 4 October 2013, Dragon Oil has completed two wells. Both wells were completed using the jack-up rig on the Dzheitune (Lam) C platform. The Dzheitune (Lam) C/185 well was drilled to a depth of 2,905 metres and completed as a dual producer in November 2013. It tested for initial production at 2,053 barrels of oil per day (bopd) from the short string and 1,674 bopd from the long string. The depth of the Dzheitune (Lam) C/186 well was 2,833 metres and it was completed as a dual producer in December 2013. The short string tested at the initial rate of 1,090 bopd with the long string testing at 1,843 bopd.

Four drilling rigs will be operational in the Cheleken Contract Area in the coming two months. The jack-up rig has been mobilised to the Dzheitune (Lam) B platform to sidetrack the Dzheitune (Lam) B/155 well. The other three rigs are expected to commence drilling in February 2014: the Neptune jack-up drilling rig is being prepared for spudding the Dzhygalybeg (Zhdanov) 21/101 well; the leased platform-based rig ("Land Rig 1") is expected to commence drilling on the Dzheitune (Lam) 22 platform and the contracted platform-based rig ("Land Rig 2") is being prepared to commence drilling the Dzhygalybeg (Zhdanov) A/102 appraisal/development well.

The average Cheleken gross field production for 2013 was approximately 73,750 bopd (2012: 67,600 bopd), representing an increase of 9.1% over the corresponding period in 2012. The average production for December 2013 was 72,900 bopd (December 2012: 73,500 bopd). The exit rate in 2013 was 74,812 bopd (2012: 73,520 bopd).

The Trading Statement is due for publication on 14 January 2014.

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For further information please contact:

Investor and analyst enquiries

Dragon Oil plc (+44 (0)20 7647 7804)

Anna Gavrilova

Media enquiries

Citigate Dewe Rogerson (+44 (0)20 7638 9571)

Martin Jackson

About Dragon Oil

Dragon Oil plc is an international oil and gas exploration, development and production company, quoted on the London and Irish Stock exchanges (Ticker symbol: DGO). Its principal producing asset is in the Cheleken Contract Area, in the eastern section of the Caspian Sea, offshore Turkmenistan.

Dragon Oil (Turkmenistan) Ltd., a wholly owned subsidiary of Dragon Oil plc, holds 100% interest in, and is the operator of, the Production Sharing Agreement for the Cheleken Contract Area. The operational focus is on the re-development of two oil and gas producing fields, Dzheitune (Lam) and Dzhygalybeg (Zhdanov).

The Group has exploration blocks in Tunisia, Iraq and Afghanistan. Dragon Oil's diversification strategy is to add exploration and production assets within Africa, parts of Asia and the Middle East in order to create a diversified and balanced portfolio of assets for the Group.

www.dragonoil.com

Disclaimer

This news release may contain forward-looking statements concerning the financial condition and results of operations of Dragon Oil. Forward-looking statements are statements of future expectations that are based on management's current expectations and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in these statements. No assurances can be given as to future results, levels of activity and achievements and actual results, levels of activity and achievements may differ materially from those expressed or implied by any forward-looking statements contained in this report. Dragon Oil does not undertake any obligation to update publicly or revise any forward-looking statement as a result of new information, future events or other information.