Press Release

8th August 2006

DANA PETROLEUM PLC
("DANA", "THE COMPANY", OR "THE GROUP")

First Oil Flows from the Goosander Field

Dana Petroleum is pleased to announce that production has successfully commenced from the Goosander oil field, where the Company holds a 50% working interest. Goosander is located in Block 21/12 within the Greater Kittiwake Area ("GKA") of the UK Central North Sea, and is the fourth field to be produced in this area joining the Kittiwake, Mallard and Gadwall oil fields.

Goosander has been developed as a subsea tie-back to the Kittiwake platform, utilising two subsea flowline bundles totalling 12 kilometres in length. The bundles were manufactured and installed by Subsea7 from their construction site in Wick, Scotland and have been designed to accommodate future production and water injection wells and the potential for re-use on future subsea tie-backs.

To effect the development, the original Goosander discovery well 21/12-3 has been re-entered and completed as a production well and, subject to early field production performance, the drilling of a water injection well is planned during 2007 to optimise oil recovery. Estimated gross proven and probable recoverable reserves for the field are currently 15.2 million barrels of oil. The initial production flow rates seen at Goosander are in line with expectations and, now that Goosander is on stream, the overall productive capacity of the GKA is approximately 28,000 barrels of oil equivalent per day.

Dana holds a 50% working interest in the Goosander field, and in the oil fields of the GKA as a whole, alongside co-venturer and operator, Venture Production plc. Dana's current productive capacity from the GKA is therefore now approximately 14,000 barrels of oil equivalent per day.

Tom Cross, Chief Executive of Dana commented:

"Achieving first oil production from the Goosander field delivers Dana's most important development target for 2006. The Group now produces from a total of 12 oil and gas fields, with 11 of these in the North Sea. Dana's production portfolio is continuing to build with our next two UK developments, the Enoch oil field and the Cavendish gas field, already in progress offshore."

 

For further information please contact:

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

Notes to Editors

1. The Goosander field's base case water flood development is expected to deliver a peak annual average gross oil production rate of approximately 9,500 barrels per day.

2. The anticipated field life for Goosander is between 7 and 10 years, with cumulative gross production of 15.2 million barrels of oil and 2.6 billion cubic feet of gas. Associated gas from GKA fields is either used to power the Kittiwake platform or exported into the Fulmar gas line.

3. The Greater Kittiwake Area, including the Goosander field, is jointly owned by Dana Petroleum plc and Venture Production plc (50% each). Goosander is the fourth oil field to produce in this area, joining the three already producing oil fields of Kittiwake, Mallard and Gadwall.