Dragon Oil plc publishes an update on the successful completion and initial testing of the Dzheitune (Lam) 28/169 development well and on the Group's recent production performance.

The Dzheitune (Lam) 28/169 well was completed as a single producer to a depth of 2,010 metres. It tested for initial production at 1,775 barrels of oil per day ("bopd"). The drilling rig has skidded to the next slot and spudded the Dzheitune (Lam) 28/172 well.

Early in 2Q 2012, a number of older wells were choked down to minimise possible production of sand; that had an impact on the oil flow from these wells. We are gradually bringing the wells back to normal levels of flow by installing sand screens in some of those affected older wells as well as desanders on certain platforms in areas prone to sand production.

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