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15 Dec 2009 07:00
For immediate release
15 December 2009
DRAGON OIL PLC
(the "Company" or together with its subsidiaries "Dragon Oil" or the "Group")
Infrastructure and Drilling Update
Installation of the Dzheitune (Lam) B platform completed
Astra jack-up rig successfully mobilized and spuds a well
Iran Khazar rig completes the Dzheitune (Lam) A/139 with an initial combined tested rate of 2,647 barrels of oil per day ("bopd")
Dragon Oil plc (Ticker: DGO), an international oil and gas exploration and production company, today provides the following infrastructure and drilling update.
The installation of the Dzheitune (Lam) B platform has been completed and the Astra jack-up rig has arrived to the Cheleken Contract Area to commence work for Dragon Oil. The rig has been mobilized on the platform and has spudded the Dzheitune (Lam) B/141 development well, which is expected to come on stream in Q1 2010.
The contract to hire the Astra jack-up rig for six months was signed with BKE Shelf Limited. The Group plans to use this jack-up rig to drill two wells during the contract term.
The Dzheitune (Lam) B platform was installed in the Western part of the Dzheitune (Lam) field. This is the second new platform built and installed in the field since Dragon Oil became the operator in the Cheleken Contract Area in 2000. We expect to drill eight wells from this platform.
The Iran Khazar rig drilled the Dzheitune (Lam) A/139 well to a depth of 3,360 metres. Testing of the short and long strings resulted in production rates of 1,350 bopd and 1,297 bopd, respectively; with further testing and optimisation scheduled to take place. The Iran Khazar rig has skidded to Slot 9 on the Dzheitune (Lam) A platform to commence drilling the Dzheitune (Lam) A/142 well.
Dr Abdul Jaleel Al Khalifa, Chief Executive Officer, commented:
"I am pleased to report that the Dzheitune (Lam) B platform has been installed successfully and that we have spudded the first well from this platform using the Astra jack-up rig. We have also put into production the seventh well out of the eight wells planned to be completed in 2009. We continue to work towards finalising a long-term contract for a full-time platform-based rig, which will operate alongside the three rigs we now have in operation."
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For further information please contact:
Media enquiries:
Citigate Dewe Rogerson (+44 20 7638 9571)
Martin Jackson
George Cazenove
Investor and analyst enquiries:
Dragon Oil plc (+ 44 20 7647 7804)
Anna Gavrilova, Investor Relations
About Dragon Oil
Dragon Oil plc is an innovative 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. The Company acquired interests in Blocks 35, 49 and R2 (10%) in the Republic of Yemen in December 2007.
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
Note
This statement 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.
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