Dragon Oil plc reported that the development well Dzheitune (Lam) A/129 yielded a combined rate of 2,123 barrels of oil per day (bopd) from the short and long strings following initial testing. The Company also noted that completion of well Dzheitune (Lam) 22/130 is scheduled for October 2008, and that the Iran Khazar rig will spud a further development well, Dzheitune (Lam) A/131, which is scheduled for completion in November 2008.

Hussain M. Sultan, Executive Chairman, commented, "I am pleased to announce the successful completion and initial testing of the Dzheitune (Lam) 22/129 development well using the Iran Khazar rig. This is the sixth well we have completed this year on schedule and in line with Dragon Oil's drilling program. We remain confident that we will meet our 2008 targets for both the number of wells drilled and production."

Initial testing of the Dzheitune (Lam) A/129 well was completed on schedule. The well was drilled to a depth of 4,135 meters, with testing of the short and long strings resulting in production rates of 1,417 bopd and 796 bopd respectively. Further testing and optimization is scheduled to take place over the next few weeks.

The CIS-1 rig is currently drilling the development well Dzheitune (Lam) 22/130 from the Dzheitune (Lam) 22 platform. This new development well has a target depth of 3,840 meters and is expected to come on production October 2008. Once well Dzheitune (Lam) 22/130 is completed, the CIS-1 rig will be moved to the Dzheitune (Lam) 28 platform for the next phase of its drilling program.

The Iran Khazar rig will skid to slot 8 on the Dzheitune (Lam) A platform and will spud a further development well, Dzheitune (Lam) A/131. The new development well has a target depth of 4,164 meters and is expected to come on production in November 2008. Once this well has completed, the Iran Khazar rig will go for planned maintenance works and thereafter will commence drilling in January 2009

Tags: Dragon Oil Plc