Operations

Dragon Oil plc’s principal development and production interest is located in the Cheleken Contract Area in the Caspian Sea, offshore Turkmenistan. The Cheleken Contract Area covers approximately 950 square kilometres (235,000 acres) and comprises two offshore oil and gas fields, Dzheitune (Lam) and Dzhygalybeg (Zhdanov), in water depths of between 8 and 42 metres.

The operational focus for the Dragon Oil Group is on the re-development of these two producing fields that were discovered during the Soviet era in Turkmenistan. Dragon Oil holds a 100% interest in and is operator of the Production Sharing Agreement (“PSA”) for the Cheleken Contract Area. Development in the Cheleken Contract Area under the PSA commenced in May 2000.

There are currently 60 active wells producing from 13 platforms. Dragon Oil's average field production rate for H1 2009 from the Cheleken Contract Area was 42,808 bopd.