Dragon Oil PLC ( LON:DGO) announced the completion and successful initial testing of its latest development well in the Cheleken contract area, in the Caspian Sea offshore Turkmenistan. The Dzheitune (Lam) 28/156 well reached a depth of 2,000 metres and was completed as a single producer. The initial test result from the well was 3,038 barrels of oil per day (bopd). The NIS rig has skidded to the next slot to spud the Dzheitune (Lam) 28/158 well shortly. The Iran Khazar rig is currently drilling the Dzheitune (Lam) B/157 well. Chief executive Dr Abdul Jaleel Al Khalifa said: "I am pleased to report the successful completion and initial testing of the Dzheitune (Lam) 28/156 development well, the fifth well to have been completed within the 2011 drilling programme. We continue to optimize well locations to ensure good potential while accessing different areas of the reservoir." In April, Dragon announced it had a strong first quarter to end-March 2011 with a solid production performance and it plans to complete 11 wells within the 2011 drilling campaign. Production from the Cheleken contract area averaged approximately 57,800 barrels of oil per day, up from 47,600 bopd in the first quarter last year. It sold 2.6 million barrels of crude oil in first quarter, up 30 percent from a year earlier. All crude exports in the period went through Baku, Azerbaijan, compared with 14 percent previously. Its strong financial position and expanding production led Dragon Oil to announce in February that it plans to pay a 14 pence a share maiden dividend.

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