Annual Report 2008

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Year at a Glance

In 2008, Dragon Oil continued its programme to renew its infrastructure by adding additional capacity, removing production bottlenecks and expanding export capability.

Delivery on Promises

January

9 January 2008

The Dzheitune (Lam) 22/124 well completed yielding a combined rate of 2,414 bopd with a depth of 3,841 metres using the CIS 1 Rig from the Dzheitune (LaM) 22 platform.

March

20 March 2008

Dzheitune (Lam) A/125B well completed yielding a combined rate of 4,082 bopd with a depth of 4,080 metres using the Iran Khazarig from the Dzheitune (Lam) A platform.

April

22 April 2008

Announced initial noncommercial findings from Blocks 49 in Dragon Oil’s
non-operated acreage in the Republic of Yemen, with geological and geophysical analysis ongoing.

23 April 2008

Unprecedented cold weather in Turkmenistan momentarily slowed production from the Dzheitune (Lam) 28/120 requiring the well to be shut in and for a new coflex alternative pipeline to be installed.

29 April 2008

Dzheitune (Lam) 22/126 completed yielding a combined rate of 2,795 bopd with a depth of 4,307 metres using the CIS 1 Rig from the Dzheitune (Lam) 22 platform.

Restored production flow from well Dzheitune (Lam) 28/120, which was shut in due to technical problems arising from the extreme weather conditions in Turkmenistan.

May

1 May 2008

Appointment of Abdul Jaleel Al Khalifa to the role of Chief Executive Officer, with Hussain M. Sultan continuing in the role of Executive Chairman.

June

5 June 2008

Dzheitune (Lam) A/127 well on completed yielding a combined rate of 3,674 bopd with a depth of 3,627 metres using the Iran Khazar rig from
the Dzheitune (Lam) A platform.

July

16 July 2008

Dzheitune (Lam) 22/128 completed yielding a combine rate of 2,600 bopd. CIS 1 Rig, Lam 22 platform, 3848 metres.

21 July 2008

Awarded US$170 million contract for the construction of a new 30-inch, 40-km trunkline to bring all of Dragon Oil’s oil and gas onshore to its Central Processing Facility.

August

29 August 2008 

Dzheitune (Lam) A/129 well completed yielding a combined rate of 2,123
bopd with a depth of 4,135 metres using the Iran Khazar rig from the Dzheitune (Lam) A platform.

September

26 September 2008

Board Restructuring

Resignation of Hussain M. Sultan from the role of Executive Chairman.

Appointment of Mohammed Al Ghurair as Non-Executive Chairman.

Appointment of Abdul Jaleel Al Khalifa, Chief Executive Officer as an Executive Director on the Board of the Company.

November

12 November 2008

Dzheitune Lam 22/130 well completed yielding a combined rate of 2,057
bopd with a depth of 3,770 metres using the CIS Rig from the Dzheitune (Lam) 22 platform.

Dzheitune Lam A/131 well completed yielding a combined rate of 4,621
bopd with a depth of 4,120 metres using the Iran Khazar rig from the Dzheitune (Lam) A platform.

December

30 December 2008

Dzheitune Lam 21/132 completed yielding an initial rate of 916 bopd. Drilling of this well stopped at 3,001 metres when it encountered pressures that were higher than expected. As a result the main intended deeper intervals will not be penetrated, however, there are plans to revisit this well at a later date in order to reach the main targets.

Deployed Dragon Oil’s own refurbished Rig 40 to the Dzheitune (Lam) 13 Platform, where it spudded its first well in January 2009.