Dragon terminates rig contract

Dragon Oil has opted not to renew the contract for the CIS-1 platform-based rig in the Turkmen sector of the Caspian Sea.

Offshore staff

ASHKABAD, TurkmenistanDragon Oil has opted not to renew the contract for the CIS-1 platform-based rig in the Turkmen sector of the Caspian Sea.

Management concluded they needed a platform rig with higher performance specifications to achieve the company's production targets in the Cheleken Contract Area field developments.

Dragon plans to drill higher slanted wells to improve output. It has launched a tender process, and expects to contract a new rig this spring.

The company's ownRig 40 was refurbished last year and spudded its first well this January, with four more to follow during the year.

Another rig on duty for Dragon, the jackupIran Khazar, recently started drilling the first of four new wells in another part of the Cheleken Contract Area. Its contract will shortly expire, but Dragon may again choose to look for a replacement.

3/6/2009

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