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28 Jan 2010 16:03
For immediate release
28 January 2010
DRAGON OIL PLC
(the "Company" or together with its subsidiaries "Dragon Oil" or the "Group")
Contract awarded for lease and management of a jack-up rig
Dragon Oil plc (Ticker: DGO), an international oil and gas exploration and production company, today announces that it has awarded a contract, subject to the signing of a formal contract within the next 60 days, to Yantai Raffles Offshore Ltd. for lease and management of a new build Super M2 jack-up rig (the "M2 jack-up rig") in the Cheleken Contract Area.
The M2 jack-up rig will be constructed as a self-elevating drilling unit in accordance with international marine construction standards. The M2 jack-up rig is expected to be constructed and mobilized to the Cheleken Contract Area in Q4 2011. Upon delivery, the lease and management contract is expected to commence for an initial duration of five years, with an option to extend it for a further period of up to two years.
Yantai Raffles Offshore Ltd. is a subsidiary of Yantai Raffles Shipyard Limited, an offshore and marine fabrication specialist, headquartered in Singapore. The company specializes in marine and offshore projects that include construction of jack-up drilling rigs and semi-submersible drilling rigs.
Dr Abdul Jaleel Al Khalifa, Chief Executive Officer, commented:
"I am pleased to announce that Dragon Oil has awarded a contract for lease and management of a new build Super M2 jack-up rig commencing in Q4 2011. This contract gives us an excellent opportunity to secure the rig we want and for a longer period than would otherwise be possible in the open market. In 2009, we achieved significant progress with securing rigs for the development of the Cheleken Contract Area and today's announcement underscores our commitment to work in the same direction."
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Citigate Dewe Rogerson (+44 20 7638 9571)
Martin Jackson
George Cazenove
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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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