8 October 2013
DRAGON OIL PLC
(the "Company" or together with its subsidiaries "Dragon Oil" or the "Group")
Formal Signing of Contracts for Two Blocks in Afghanistan
Dragon Oil plc (Ticker: DGO), an international oil and gas exploration, development and production company, is pleased to announce today the formal signing by the Ministry of Mines and Petroleum of Afghanistan of the exploration and production sharing contracts (EPSC) for two blocks, Sanduqli and Mazar-i-Sharif, of the Afghan-Tajik Phase 1 Oil & Gas Tender.
The participating interest of Dragon Oil, Turkiye Petrolleri A.O. (TPAO) and the Ghazanfar Group in the two blocks is 40%, 40% and 20% respectively. Dragon Oil shall be the operator of the Sanduqli block while the Mazar-i-Sharif block would be operated by TPAO. The Sanduqli block borders Turkmenistan and Uzbekistan in the north and spans 2,583 square kilometres. The Mazar-i-Sharif block borders Uzbekistan in the north and has an area of 2,715 square kilometres.
Dr Abdul Jaleel Al Khalifa, Chief Executive Officer, said:
"I am delighted to announce the formal signing of the exploration and production sharing contracts for Sanduqli and Mazar-i-Sharif by all concerned parties. We are excited about this opportunity to work in Afghanistan and the prospects of these two blocks. We look forward to working with the host government and our partners in Afghanistan."
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About Dragon Oil
Dragon Oil plc is an international oil and gas exploration, development and production company, quoted on the London and Irish Stock exchanges (Ticker symbol: DGO). Its principal producing asset is in the Cheleken Contract Area, in the eastern section of the Caspian Sea, offshore Turkmenistan.
Dragon Oil (Turkmenistan) Ltd., a wholly owned subsidiary of Dragon Oil plc, holds 100% interest in, and is the operator of, the Production Sharing Agreement for the Cheleken Contract Area. The operational focus is on the re-development of two oil and gas producing fields, Dzheitune (Lam) and Dzhygalybeg (Zhdanov).
The Group has exploration blocks in Tunisia, Iraq and Afghanistan. Dragon Oil's diversification strategy is to add exploration and production assets within Africa, parts of Asia and the Middle East in order to create a diversified and balanced portfolio of assets for the Group.
Turkiye Petrolleri A.O. (TPAO) is the national oil and gas company of the Republic of Turkey having activities ranging from exploration, development, production, transportation, storage to gas stations. TPAO, in addition to its activities in Turkey, has assets in Azerbaijan, Iraq, Kazakhstan, Libya, and Northern Cyprus. TPAO also is a shareholder in the Baku-Tbilisi-Ceyhan (BTC) and the South Caspian Pipeline (SCP) projects.
The Ghazanfar Group
The Ghazanfar Group of Companies is a well-established local Afghan family conglomerate, based in the city of Mazar-i-Sharif in northern Afghanistan, where the blocks are located. They are active in a number of businesses, including supply and distribution of petroleum products, logistics, construction and banking. They have recently constructed a refinery, which will commence operations at the end of this month.
This news release may contain forward-looking statements concerning the financial condition and results of operations of Dragon Oil. Forward-looking statements are statements of future expectations that are based on management's current expectations and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in these statements. No assurances can be given as to future results, levels of activity and achievements and actual results, levels of activity and achievements may differ materially from those expressed or implied by any forward-looking statements contained in this report. Dragon Oil does not undertake any obligation to update publicly or revise any forward-looking statement as a result of new information, future events or other information.