Dragon reviews Cheleken reserves

Offshore staff

ASHGABAD, Turkmenistan --Dragon Oil will start subsurface reservoir modeling this summer on its Cheleken Contract Area producing fields offshore Turkmenistan.

The company will use the results to reassess hydrocarbon volumes and recoverable reserves. In 2004, the company acquired a full-block 3D seismic program (652 sq km or 252 sq mi) across the LAM and Zhdanov fields. Following interpretation last year, the resultant maps were used to position the new LAM A platform and to identify oil potential in the LAM West structure.

Despite drilling successes, there were imaging problems associated with the time-migrated seismic data, due to the fields' structural complexity. This led to a full-depth migration of the data last fall, which improved the data quality.

Presently Dragon's reservoir development team is working with external consultants to complete a full set of maps at three reservoir levels by the end of June. These maps will form the first part of the planned reservoir review, and will be integrated with data from new wells drilled this year and next.

5/29/2007