Dragon to invest $500 million

Offshore staff

ASHGABAD, Turkmenistan --Dragon Oil is embarking on a three-rig development campaign in the Turkmen sector of the Caspian Sea. This will involve deployment of one jack-up and two platform-based rigs.

The jack-upwill drill several wells from the Lam A platform this year. The platform-based rigCIS-1 is on its way, and should arrive on location this spring. Dragon's own platform-based Rig 40 is undergoing refurbishment, but again should start drilling in the spring. There also will be a sustained program of workovers through 2007, using snubbing and wireline equipment.

Between 2007-09, the company plans to drill up to 25 development and appraisal wells, subject to rig availability, leading to a 25% year-on-year increase in its crude production. It also expects to spend around $500 million over this period on new production platforms, offshore facility upgrades, new pipelines, and enhanced export capability.

03/07/2007