Dragon Oil Plc completed initial testing of the Dzheitune (Lam) A/162 development well. The well tested for initial production at 1,096 barrels of oil per day (b/d).

The well was drilled as a single producer to a depth of 2,970 m (9,801 ft) by the Iran Khazar rig. The rig was then skidded to the next slot and has spudded the Dzheitune (Lam) A/165 development well.

The workover of the Dzheitune (Lam) A/127 well has been scheduled for 2012. The NIS rig and Rig 40 are currently drilling the Dzheitune (Lam) 28/164 and 13/163 wells, respectively.

Dr. Abdul Jaleel Al Khalifa, Dragon chief executive officer, noted, "Dragon Oil is on track to complete 13 wells within the 2011 drilling program. Eleven wells have been successfully put into production with the remaining two wells, the Dzheitune (Lam) 13/163 and 28/164 development wells to be completed in the next few weeks. By the end of this year, we will have completed a record number of wells, which will put us on course to exit the year at a production level of approximately 70,000 b/d."

Dragon Oil (Turkmenistan) Ltd., a wholly owned subsidiary of Dragon Oil, holds 100% interest in and is the operator of the production sharing agreement for the Cheleken Contract Area. The operational focus is on the re-development of two oil-producing fields, Dzheitune (Lam) and Dzhygalybeg (Zhdanov).