DRAGON OIL, WE NEED GAS PRODUCTION NEWS

Miles Stones 2005
12 April 2005; COMPLETION OF WELL LAM 10/110
Dragon is pleased to announce the successful completion of its first development well to be drilled on the refurbished LAM 10 platform in the Cheleken Contract Area, offshore Turkmenistan, well LAM 10/110. The well was spudded on 25th December 2004 as part of Dragon's continuous drilling programme. Well LAM 10/110 was drilled to a total depth of 4,875 m MD in reservoir Zone 12. Indications of oil and gas were encountered whilst drilling reservoir Zones 4 to 12. This is the first time Dragon has drilled to Zone 12 in the LAM field. It demonstrates there is potential for oil and gas at this deep reservoir zone. Well LAM 10/110 was a monobore completion. It is anticipated that up to four intervals will be tested in the well, commencing with reservoir Zone 12. The ASTRA jack-up rig has been moved away from the platform location as its contract has finished. Following the well test programme, the Iran Khazar jack-up rig is expected to arrive at the LAM 10 platform by the end of April 2005 where it will continue the drilling programme of up to 6 wells.
15 Juli 2005; PRODUCTION BEGINS FROM WELL LAM 10/110
Dragon is pleased to announce well LAM 10/110 on the refurbished LAM 10 platform in the Cheleken Contract Area, offshore Turkmenistan has tested oil from Zones 4, 5, 8 and 9 at a combined rate of 1603 barrels of oil per day. The previously reported technical difficulties were successfully resolved and the well is now on production. The deep reservoir zones 11 and 12, drilled and tested for the first time by Dragon Oil flowed water at the LAM 10/110 location. However, significant potential exists in these zones and they will be further evaluated at an updip location as part of the ongoing field development. The Iran Khazar jack-up rig is currently being skidded to drill the second well from the refurbished LAM 10 platform, well LAM 10/111. This well is planned to have a total depth of around 3600 metres. Hussain M. Sultan, Chairman of Dragon Oil commented: 'We are pleased that LAM 10/110 is now producing oil and generating revenue. We
now look forward to a successful outcome from LAM 10/111, the next well in our continuous drilling programme, and from our ongoing workover programme.'
8 August 2005; Completion of the workover of well LAM63/55. Following perforation of four intervals in reservoir Zone 4 the well tested at a rate of 1,636 barrels of oil per day ('bopd'). Prior to the workover the well was flowing at 338 bopd. The workover of well LAM63/55 was carried out on schedule. The workover programme will continue on LAM75 platform and LAM21 using the hydraulic workover unit and wireline unit respectively. A second hydraulic workover unit is currently being mobilised to the Cheleken Contract Area and is expected to commence work on Zhdanov Field in September 2005.
14 Oktober 2005; Well LAM 10/111 has tested oil from Zones 4, 5 and 6 at a combined rate of 2,586 bopd. Well 10/111 was spudded on 19th July 2005 and drilled to a total depth of 3,544m MD (measured depth) in reservoir Zone 7. The well was successfully completed using dual completion which enables two reservoir intervals, at different reservoir pressures, to be produced simultaneously. This is the first time that Dragon has used dual completion technology. Reservoir Zones 4 (lower part), 5 and 6 were produced through the lower completion string and tested at a rate of 1,506 bopd. The upper part of reservoir Zone 4 was produced through the upper completion string and tested at a rate of 1,080 bopd. Both intervals will be produced together. The Iran Khazar jack-up rig has been skidded to commence drilling the third well from the LAM 10 platform, well LAM 10/112. This well is planned to be drilled to a total depth of around 3,600 metres.
28.Dezember 2005; Well LAM 10/112 drilled from the refurbished LAM 10 platform in the Cheleken Contract Area, offshore Turkmenistan, has tested oil from Zones 4, 5 and 6 at a combined rate of 2,950 barrels of oil per day, ("bopd"). Well LAM10/112 was spudded on 14th October 2005 and drilled to a total depth of 3,629m in reservoir Zone 7. The well was successfully completed using a dual completion which enables two reservoir intervals, at different reservoir pressures, to be produced simultaneously. Reservoir Zones 5 (lower part) and 6 were produced through the lower completion string and tested at a rate of 2,087 bopd. The upper part of reservoir Zone 5 and Zone 4 was produced through the upper completion string and tested at a rate of 863 bopd. Both intervals will be produced together. The Iran Khazar jack-up rig has been skidded to commence drilling the fourth well from the LAM 10 platform, well LAM 10/113. This well is planned to be drilled to a total depth of around 3,700 metres. Hussain M. Sultan, Chairman of Dragon commented: "We are pleased with the result of well LAM 10/112 which was drilled using dual completion technology."