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By John Lee.

In its Drilling and Production Update issued today (Friday), Dragon Oil has said that it plans more detailed testing at its Mishrif site:

"On 10 September 2014, the consortium comprised of Kuwait Energy (70% and operator) and Dragon Oil (30%) reported its first oil discovery at Block 9, Iraq.

"The successful discovery was at the consortium's first target, the Mishrif formation at 2,700 metres, in its Block 9 exploration well, Faihaa-1.

"Preliminary tests of the Faihaa-1 Mishrif formation resulted in a flow rate of circa 2,000 bopd of 20 API oil on 32/64" choke.

"The consortium will conduct more detailed testing on Mishrif towards the end of the year.

"The consortium's strategy is to continue drilling activities, exploring deeper horizons and collecting further data, to evaluate the discovery and to define an appraisal plan."

(Source: Dragon Oil)

By John Lee.

Shares in Irish-based Petroceltic International have risen more than 20 percent on Monday following the announcement of that the company is in detailed discussions regarding a possible offer to be made by Dragon Oil.

With the support of the Board and management team of Petroceltic, Dragon Oil has completed an extensive confirmatory due diligence exercise and has submitted to the Board of Petroceltic proposed offer terms of 230 pence sterling in cash per Petroceltic share.

The shares were trading at 217 pence sterling late Monday morning, up from a closing price of 178.5 pence on Friday.

Petroceltic added:

"There can be no certainty that any offer will be made or as to the terms of any offer. Shareholders are advised to take no action at this time".

Following disappointing results from its Shakrok licence in Iraqi Kurdistan, Petroceltic shifted the focus of its Iraqi activities to Dinarta.

(Sources: Petroceltic, Dragon Oil, Yahoo!)

By John Lee.

Hawker Beechcraft Corporation of Wichita, Kansas, has been awarded a $16,625,317 [19.4 billion Iraqi dinar] modification to a previously awarded contract for contractor logistics support for the Iraq Peace Dragon King Air 350 Program.

According to the announcement from the US Department of Defense, the work will be performed in Iraq and is expected to be completed by Sept. 30, 2015.

Air Force Life Cycle Management Center, Wright-Patterson Air Force Base, Ohio, is the contracting activity.

(Source: US Department of Defense)

By John Lee.

Shares in Dragon Oil closed up 0.2 percent on Wednesday following the discovery of oil at Block 9.

Kuwait Energy, Dragon Oil's partner in Block 9, issued the following update on the exploration well, Faihaa-1, being drilled in the block:

Kuwait Energy announces that the consortium comprised of Kuwait Energy (70% and operator) and Dragon Oil (30%) has made its first oil discovery at 'Block 9', Iraq.

The successful discovery was at the consortium's first target, the Mishrif formation at 2,700 meters, in its Block 9 exploration well, 'Faihaa-1', located in Northern Basra, Iraq.

Preliminary tests of the Faihaa-1 Mishrif formation resulted in a flow rate of circa 2,000 BOPD of 20 API oil on 32/64" choke. The consortium will conduct more detailed testing on Mishrif towards the end of the year.

The consortium's strategy is to continue drilling activities, exploring deeper horizons and collecting further data, to fully evaluate the discovery and to define an appraisal plan."

Dr Abdul Jaleel Al Khalifa, CEO, Dragon Oil plc, commented:

"We are pleased to report along with our operating partner Kuwait Energy an oil discovery in the first target, the Mishrif formation, in Block 9, Iraq. This represents the first significant success in Dragon Oil's exploration portfolio. Drilling continues towards the second target, which will be tested later this year, and we look forward to a full evaluation of the discovery and the drawing up of a block appraisal plan by the consortium."

(Sources: Dragon Oil, Yahoo!)

By John Lee.

In its interim financial and operational results for the period ended 30th June 2014, Dragon Oil gave the following update on its operations in Iraq:

In Iraq, the consortium of Dragon Oil (30%) and Kuwait Energy Corporation (70% and operator) is drilling an exploration well. The well is targeting two prospective reservoirs, which, in case of a discovery, are expected to be tested in 2H 2014.

The first target has been reached, coring operation is ongoing. Concurrently, the consortium has completed an environmental impact assessment and environmental baseline studies, as part of the consortium's contractual obligations, in preparation for de-mining work and seismic acquisition.

De-mining activities commenced in early June 2014. 3D seismic acquisition activities are planned for 1H 2015.The work commitment on the block within the initial five-year exploration period will include de-mining, seismic acquisition and interpretation and drilling of an exploration well.

Dr Abdul Jaleel Al Khalifa, Chief Executive Officer, commented:

"I am pleased to report that revenues increased by 11% in 1H 2014 supported by better realised crude oil prices and higher sales volumes for our entitlement share of crude oil production from the Cheleken Contract Area in Turkmenistan ...

"The Board is pleased to announce an increased interim dividend of 20 US cents. The Board continues to focus on the diversification opportunities for the Group, ongoing capital requirements for all our assets and a strong balance sheet."

(Source: Dragon Oil)

By John Lee.

In a Trading Statement on Tuesday, Dragon Oil gave the following update on its operations in Iraq:

In Iraq, the consortium of Dragon Oil (30%) and Kuwait Energy Corporation (70% and operator) is drilling an exploration well.

The well is targeting two prospective reservoirs, which, in case of a discovery, are expected to be tested in 2H 2014.

Concurrently, the consortium has completed an environmental impact assessment and environmental baseline studies, as part of the consortium's contractual obligations, in preparation for de-mining work and seismic acquisition.

De-mining activities commenced in early June 2014. 3D seismic acquisition activities are planned for 1H 2015.

(Source: Dragon Oil)

By John Lee.

Dubai's Dragon Oil reports that it has spudded an exploration well using a drilling rig from the Iraqi Drilling Company.

The well is targeting two prospective reservoirs, and testing is expected to take place in 2H 2014.

The consortium consists of Dragon Oil (30 percent) and Kuwait Energy Corporation (70 percent and operator).

(Source: Dragon Oil)

As part of its trading statement and operational update this morning, Dragon Oil made the following statement on its operations in Iraq:

The consortium (Kuwait Energy 70% and operator and Dragon Oil 30%) has secured a drilling rig from the Iraqi Drilling Company (IDC) to spud an exploration well in 1Q 2014.

The work commitment on the block within the initial five-year exploration period will include de-mining, seismic acquisition and interpretation and drilling of an exploration well.

(Source: Dragon Oil)

By John Lee.

Kuwait Energy and Dragon Oil have secured a rig from the Iraqi Drilling Company (IDC) to spud an exploratory well at Block 9 in Basra Province by the end of the year.

In parallel, the consortium has selected a provider for Environmental Impact Assessment, Environment Base Line Survey and contractors to perform de-mining activities.

Kuwait Energy owns 70 percent of the project and is the operator, with Dragon Oil holding the remaining 30 percent.

The work commitment on the block within the initial five-year exploration period will include de-mining, seismic acquisition and interpretation and drilling of an exploration well.

(Source: Dragon Oil)

This week at the Paris Air Show, Beechcraft Corporation announced the award of a 28-month contract extension for contractor logistics support for the Iraq Air Force King Air fleet, led by its Global Mission Support team.

The Beechcraft Special Mission King Air 350ER platform was selected by the Iraq Air Force in 2006 and the company delivered six King Air 350 aircraft (five King Air 350ER and one King Air 350) via a Foreign Military Sale in 2007 and 2008. Also included with the sale were fixed and portable ground stations, training and logistics support.

“The multi-year extension of this support contract is a result of the exceptional value the in-country GMS team is providing the Iraq Air Force,” said Jay Gibson, vice president, GMS. “Our team’s high quality service is further supported by the U.S. Government issuing the company an “Exceptional” rating on its 2012 Contractor Performance Report and describing the Peace Dragon maintenance training program as a ‘Model for Iraq’.”

GMS supports the Iraqi Air Force by managing contractor logistics support operations that boast outstanding mission readiness rates. Services in-country include staffing dedicated maintenance teams, operating a Contractor Operated Maintenance Base Supply warehouse, providing a cost per flight hour model to ensure predictable and affordable operating costs, and training maintenance technicians. The Iraq GMS team is comprised of 15 personnel including supervisors, technicians and maintenance instructors based in-country at the Baghdad Diplomatic Support Center.

The King Airs are used by the Iraq Air Force to provide border surveillance, monitor insurgent activity and patrol critical infrastructure assets. The fleet has a 97 percent mission capablity rate for the 2013 calendar year and has flown 11,000+ hours to date.