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Additional Information
Market: LSE / ISE
Sector: Oil & Gas Exploration & Production
EPIC: DGO
Latest Price: 519.00  (-0.19% Descending)
52-week High: 609.00
52-week Low: 426.25
Market Cap: 2,655.50M
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Dragon Oil
www.dragonoil.com

Dragon Oil is an independent international oil and gas exploration, development and production company.  Our principal asset is the Cheleken Contract Area, in the eastern section of the Caspian Sea, offshore Turkmenistan. The Group’s headquarters are located in Dubai, United Arab Emirates. Dragon Oil had proved and probable oil reserves as at 31 December 2009 of 617 million barrels and 3.1 trillion cubic feet of gas resources.

Full Dragon Oil profile here
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Dragon Oil completes initial testing of Dzheitune development wells

12th Mar 2010, 11:03 am

Dragon Oil (LSE: DGO) has completed the initial testing of two Dzheitune development wells, A/142 and 13/143, at its Cheleken operation in the Caspian Sea. The wells were drilled to 3,961m and 3,450m, and tested at combined rates of 2,103 barrels of oil per day (bopd) and 2,168bopd respectively.

"I am pleased to report the successful completion and initial testing of both the Dzheitune (Lam) A/142 and 13/143 development wells, marking our first two successfully-completed development wells this year”, Dragon Oil chief executive Dr Abdul Jaleel Al Khalifa commented. “Our field production is subject to normal decline and adding wells will ensure that we meet our 2010 committed production growth target".

Dzheitune (Lam) is one of Dragon Oil’s two oilfields in the Cheleken Contract Area in the Caspian Sea, offshore Turkmenistan.

The Dzheitune A/142 well was drilled by the Iran Khazar rig, to a depth of 3,961m. The well tested at a combined rate of 2,103bopd with the short string contributing 1,180bopd and the long string contributing 923bopd. Rig 40 drilled the Dzheitune (Lam) 13/143 well to a depth of 3,450m. The well tested at a combined rate of 2,168bopd with the short string and the long string contributing 1,144 bopd and 1,024bopd respectively. Dragon Oil said that further testing and optimisation of both wells are scheduled to take place over the coming weeks.

The Iran Khazar rig has repositioned to work-over a well on the same platform in order to enhance its production, while Rig 40 will shortly commence drilling the Dzheitune (Lam) 13/144 well, from slot 1 on the  Dzheitune (Lam) 13 platform.

The initial testing of these two development wells, the first of 2010, adds to the company’s progress in offshore Turkmenistan. In February’s results for the full-year ended 31 December 2009, Dragon oil reported an average daily production rate increase of 9% in 2009 and landmark production of 50,000 bopd (barrels of oil per day) achieved at the turn of 2009/2010. Dragon Oil also offered a bullish outlook for the next three years amid a recovery in commodity prices and with a cash balance of more than US$1.1 billion.

In February’s results statement, Dragon Oil said it plans to complete up to 11 wells in 2010 along with 40 development wells, including five appraisal wells, targeting an annual production growth of 15% in 2010 and 10% to 15% on average in 2010-12.

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