Dragon Oil continues development drilling with two jackups in the Caspian Sea

Source: Dragon Oil

Dragon Oil (DGO) announced the successful completion and initial testing of the Dzheitune (Lam) B/141 development and appraisal well in the Caspian Sea. The well tested at a combined rate of 1,895 bopd with the short string and long string contributing 761 bopd and 1,134 bopd respectively, with further testing and optimization scheduled to take place. The well was drilled to a depth of 4,502 meters.

Since completing the Dzheitune (Lam) B/141 well, the Astra jackup rig has skidded to the second slot on the Dzheitune (Lam) B platform and has spudded the Dzheitune (Lam) B/145 development well.

As part of the workover program, the Iran Khazar rig has completed a work-over of the well Dzheitune (Lam) A/125. The workover operations included additional perforations that yielded incremental production of 562 bopd. The Iran Khazar rig will shortly commence the side track of the Dzheitune (Lam) A/129 well.

"This is the first of eight wells planned for this platform,” said Dr. Abdul Jaleel Al Khalifa, CEO of Dragon Oil. “I am also pleased to announce that workover program for the year has commenced with the Iran Khazar rig successfully completing the workover of well Dzheitune (Lam) A/125."

The Cheleken Contract Area

Dragon Oil plc’s principal development and production interest is located in the Cheleken Contract Area in the Caspian Sea, offshore Turkmenistan. The Cheleken Contract Area covers approximately 950 square kilometres (235,000 acres) and comprises two offshore oil and gas fields, Dzheitune (Lam) and Dzhygalybeg (Zhdanov), in water depths of between 8 and 42 metres.

The operational focus for the Dragon Oil Group is on the re-development of these two producing fields that were discovered during the Soviet era in Turkmenistan. Dragon Oil holds a 100% interest in and is operator of the Production Sharing Agreement (“PSA”) for the Cheleken Contract Area. Development in the Cheleken Contract Area under the PSA commenced in May 2000.

There are currently 60 active wells producing from 13 platforms. Dragon Oil's average field production rate for H1 2009 from the Cheleken Contract Area was 42,808 bopd.



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