3D Seismic Contract

RNS Number:6817U
Dragon Oil PLC
27 January 2004







                   Dragon Oil Plc ("Dragon" or the "Company")




    SIGNING OF 3D SEISMIC CONTRACT CHELEKEN BLOCK OFFSHORE TURKMENISTAN




Following the recent successful equity placing in December 2003, Dragon is
pleased to announce that it has today signed an Agreement with PetroAlliance
Services Company Limited for the provision of marine 3D seismic acquisition
services, in Dragon's Cheleken Block offshore Turkmenistan.


PetroAlliance have been awarded a contract to provide Ocean Bottom Cable ("OBC")
marine 3D seismic acquisition services in Dragon's Cheleken block in
Turkmenistan. The survey will cover 652 square kilometres, which is the entire
area of LAM and Zhdanov fields. The survey will be completed in 2004.


Chairman Hussain M. Sultan commented:


"The signing of the agreement with PetroAlliance for the OBS 3D seismic survey
is a significant step for Dragon in our efforts to develop our Cheleken fields
LAM and Zhdanov. We look forward to the early commencement of the survey in May
2004.


A 3D seismic has always been of the utmost importance to the successful
development of the Cheleken fields. It is thanks to the efforts of the Company,
the Aton Capital Group and corporate sponsors Davy, in introducing new
shareholders in last December's US$18 million equity placing that has made this
possible.


Whilst our new drilling has predominantly been located in the LAM field a 3D
seismic survey of our entire block will allow us the opportunity to further best
assess where our drilling should be located.


We are optimistic that with a 3D seismic survey we are much better placed to
carry out our continuous drilling programme."


Enquiries:


Citigate Dewe Rogerson

+ 44 207 638 9571

Martin Jackson


Dated 27 January 2004.





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