Strategy

Driving Production Growth

We are looking to maximise the returns from our high quality asset base through maintaining a good supply of rigs. The recently contracted Super M2 jack-up rig is critical to this strategy as it will be a newly built powerful rig, capable of drilling new wells faster and more efficiently and is due to be mobilised in Q4 2011.

Investing in Infrastructure

We are currently planning two additional wellhead and production platforms, Dzheitune (Lam) C and Dzhygalybeg (Zhdanov) A, to be built and installed by Q4 2011 and Q1 2012 respectively.  The new trunkline and upgrade of the Central Processing Facility are due to be completed later this year.

Investing in People

We will continue to focus on strengthening our employee base through both high quality recruitment and developing local personnel in Turkmenistan through a new staff training programme and a new Centre of Excellence to be completed later this year.

Leveraging Technology

Dragon Oil is leveraging technology to drive production growth and achieve our targets. We use both dual completion and high angle, extended reach wells to maximise production potential combined with sophisticated tools such as 3-D seismic imaging and reservoir simulation models.

Commercialising our Gas Resources

We continue to put the necessary infrastructure in place to commercialise our gas resources with the new trunkline, the Central Processing Facility upgrade and FEED study for a gas treatment plant. We expect to progress formal discussions on gas pricing with the Turkmenistan Government during 2010.

Securing New Assets

We continue to progress our diversification strategy looking to find new assets which add competitive advantage and provide a strategic fit with the Group. This will continue to be a key activity for us in 2010.