Press Release

29 August, 2008

To view or download the complete results please click here: Interim_pdf

DANA PETROLEUM PLC

INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2008

Dana Petroleum, the independent oil and gas exploration and production company focused on growth through international exploration and the development of production in the North Sea and Egypt, reports its interim results for the first half of 2008.

HIGHLIGHTS

Record Levels of Production, Profits and Cashflow

Record first half production of 43,147 boepd up 67%
Turnover increased by 188% to a record high of £314.5 million
Record Pre-tax Profit of £133.1 million up 138%, leading to Earnings Per Share of 69.95p
More than threefold growth in cashflow from operations to a new high of £193.9 million
Net debt further reduced to £9.0 million, lowering gearing to below 2%

Highly Successful Exploration Programme

7 wells drilled to date in 2008, yielding 4 new discoveries in North Sea and Egypt
West and East Rinnes fields proved good quality sands and oil flow rates of 7,800 barrels per day. Rigs now contracted to drill the South-East and South-West Rinnes structures
First well on West El Burullus, offshore Nile delta, discovered gas with flow rates up to 27 million cubic feet per day. Rig contracted for 3 further wells in this PSC.
Exciting 3 well Gulf of Suez drilling programme about to commence. Akhenaton-1 well is first to drill, on the South October PSC
Drilling site in preparation onshore Morocco at Bouanane, plan to spud by end of year
Norway drilling on Fulla target expected fourth quarter 2008
Total of 17 wells to be drilled during 2008 with all rigs contracted

Development Programme on Schedule - Ensuring Further New Production Growth

East Zeit oil production more than doubled through successful new drilling and workovers
Grouse oil field in Greater Kittiwake Area, first oil scheduled for early 2009
Babbage gas field in UK Southern North Sea, first gas anticipated Q1 2010
E18 gas field in Dutch North Sea, first production scheduled for Q3 2009

Outlook

Group production for 2008 on target to average between 40,000 and 45,000 boepd, representing more than a 30% growth over 2007
10 wells scheduled for second half of 2008
Total of up to 20 wells expected to be drilled during 2009
Awaiting results of extensive applications made in the UK 25th Licencing Round
Evaluating licence applications for Norwegian APA and 20th Licencing rounds
New production and exploration opportunities being actively pursued
Company’s un-hedged position maximises the benefits from continued commodity price strength

Tom Cross, Chief Executive of Dana, commented:

“Dana’s excellent operational performance in the first six months of 2008 has delivered major increases in oil and gas production, profits and cashflow which have all surged to new record highs. The Group is now producing from 30 oil and gas fields and undertaking three new field developments, which will come onstream from 2009. In addition, the Company is working on a further 21 appraisal and potential development projects.

2008 is the most active year of exploration in Dana’s history. A total of 17 wells are scheduled, focused on the UK, Norway and Egypt. Already this year there have been significant new oil discoveries at West Rinnes and East Rinnes in the UK and an important gas discovery at West El Burullus offshore Egypt. Rigs have now been secured to drill a number of additional targets in these particular areas and overall 10 wells are planned in the second half of 2008.

The Company is in a very strong financial position, significantly benefiting from high commodity prices and our un-hedged position. With a high quality and balanced portfolio of growth opportunities and an exciting drilling programme ahead, we have every reason to look forward to the future with confidence.”

29 August, 2008

Enquiries:

Dana Petroleum plc	Tom Cross, Chief Executive	01224 652400
	David MacFarlane, Finance Director	01224 652400
	Stuart Paton, Technical & Commercial Director	01224 652400
College Hill Associates	Nick Elwes / Paddy Blewer	020 7457 2020