DGO.L Regulatory News (DGO)

FOR IMMEDIATE RELEASE

7 October 2011

DRAGON OIL PLC

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

Drilling Update

Dzheitune (Lam) 13/160 well tested at initial rate of 1,257 barrels of oil per day

Dragon Oil plc (Ticker: DGO), an international oil and gas development and production company, announces the completion and initial testing of the Dzheitune (Lam) 13/160 development well. The well was drilled with a single string to a depth of 2,900 metres by Rig 40 and tested for initial production at 1,257 barrels of oil per day. Rig 40 has skidded to the next slot and has spudded the Dzheitune (Lam) 13/163 development well. The NIS and Iran Khazar rigs are currently drilling the Dzheitune (Lam) 28/161 and A/162 wells, respectively.

Dr Abdul Jaleel Al Khalifa, Chief Executive Officer, commented:

"Dragon Oil has successfully completed and conducted initial testing of the Dzheitune (Lam) 13/160 well. The results are in line with expectations and similar to rates seen from single completion wells on the Dzheitune (Lam) 13 platform. Four more wells remain to be completed by the end of the year and we anticipate being able to publish results from the Dzheitune (Lam) 28/161 well drilled by the NIS rig within the next few weeks."

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For further information please contact:

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

Anna Gavrilova

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Martin Jackson

Kate Lehane

About Dragon Oil

Dragon Oil plc is an international oil and gas 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-producing fields, Dzheitune (Lam) and Dzhygalybeg (Zhdanov).

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.