On 07 March 2006, Dragon announced that the LAM field feeder pipeline had become blocked and that work was in progress to install an alternate flow system. Dragon is pleased to announce that, following the successful installation and commissioning of a new 8-inch pipeline bypassing the blocked pipeline, production has been restored from all five wells on the LAM 22 platform.

The new 8-inch 21/2 kilometre pipeline connects the LAM 22 platform to the LAM 10 platform, thereby restoring production from LAM 22. The new pipeline was installed in accordance with the planned schedule.

Hussain M. Sultan, Chairman of Dragon commented:

'I am very pleased that we have restored production from the LAM 22 platform in such a short time. We have decided to upgrade our pipeline infrastructure further to complement our capital expenditure programme that includes the new processing facility, platforms and upgrade of the marine export facility. This supports our continuous drilling programme which is necessary to increase production.'