Second water injection scheme under review for Caspian offshore development project

Offshore staff

ASHGABAT, Turkmenistan – Dragon Oil has completed the Dzheitune (Lam) C/175 development well in the Turkmen sector of the Caspian Sea.

The well was drilled as a single producer to a depth of 2,721 m (8,927 ft), testing oil at an initial rate of 1,420 b/d from the deep layers.

The shallow layers contained oil-bearing sands as predicted by the geological model; however, these zones were between gas and water formations, and therefore Dragon has opted to perforate these sands at a later stage.

Results of this well should help to optimize locations of future wells from this platform.

The drilling rig has since mobilized to the Dzheitune (Lam) A platform and is currently drilling the Dzheitune (Lam) A/176 development well.

The Dzheitune (Lam) 13/171 development well, drilled on the Dzheitune (Lam) 13 platform to a depth of 2,893 m (9,491 ft), did not yield commercial oil and may be converted into a water injector-type well. This would be the second water injection project after the pilot Dzheitune (Lam) 75 area scheme, which has been producing for many years and is due for pressure support to further enhance the production potential and reserves in this area.

The land rig will be stacked on the platform for the time being. A leased land rig is undergoing maintenance in preparation for spudding the Dzheitune (Lam) 28/177 development well later this month.

9/26/2012

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