New well flowing at 2272 barrels a day for Dragon

CEO "Delighted with successful start to 2012 drilling programme"

Dr. Abdul Jaleel Al Khalifa, Dragon Oil's Chief Executive Officer.
Dr. Abdul Jaleel Al Khalifa, Dragon Oil's Chief Executive Officer.

Dragon Oil has provided its first drilling update of 2012 with the news that the Dzheitune (Lam) 13/140A sidetrack was completed with a single string to a depth of 2,237 metres by Rig 40 and tested for initial production at 2,123 barrels of oil per day ("bopd").

The company has said this shows the great potential of side tracking low producing wells in the future. Rig 40 has now returned to the Dzheitune Lam 13/163 well to make additional perforations in new intervals to improve the flow capacity of this well. The initial test rate from the Dzheitune (Lam) 13/163 well, achieved at deeper reservoir intervals in December 2011, was 296 bopd.

The Dzheitune (Lam) A/165 well was completed as a dual producer to a depth of 3,060 metres by the Iran Khazar rig. The short and long strings tested at the initial rate of 1,231 bopd and 1,041 bopd, respectively. The well tested for the combined initial production at 2,272 bopd.

The Iran Khazar rig has been mobilised to the Dzheitune (Lam) C platform and has spudded the Dzheitune (Lam) C/167 development well.

Dr Abdul Jaleel Al Khalifa, Chief Executive Officer, commented: "I am extremely pleased to announce a successful start to the 2012 Cheleken drilling programme. We have already completed and tested one development well and one sidetrack well, and drilling from the Dzheitune (Lam) C platform has commenced on schedule. We exited 2011 at the production rate of 71,751 bopd, ahead of our 70,000 bopd target, which was reached in mid-December. The good news reported today puts us in a strong position to continue to deliver solid results from the Cheleken Contract Area as we progress through the year."



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