Dana Petroleum

Press Release

11th August 2004

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

Completion of Two Successful Appraisal Wells Offshore Indonesia

Dana is pleased to announce the successful completion of two appraisal wells designed to test the western extension of the Ujung Pangkah field in the Pangkah Production Sharing Contract ('PSC') area offshore East Java, Indonesia.

The Ujung Pangkah North and Ujung Pangkah West appraisal wells were drilled approximately 3 km and 5 km respectively from the nearest existing well, using the jack-up drilling rig 'Ocean Sovereign'. Both wells encountered gas overlying oil in the Kujung limestone formation at a depth of approximately 4,800 feet below sea level. The gas-oil contact and oil-water contact in the wells are both at a depth consistent with that observed in the previous wells drilled on the eastern part of the structure, indicating the discovery of a significant extension to the previously proven area of the Ujung Pangkah field.

The northern well encountered an oil column with a thickness of 77 feet underlying a gas column spanning 78 feet. Production testing of the oil zone resulted in a stabilised flow rate of 2,300 barrels per day. A separate test of the gas zone achieved a flow rate of 14.4 million cubic feet per day.

The western well encountered a similar section of oil bearing limestone underlying a larger 117 feet gas column. Production testing of the oil zone in this well resulted in stabilised flow rates of 2,100 barrels per day and a separate test of the gas zone achieved a flow rate of 31.4 million cubic feet per day.

Planning for Phase 1 of the Ujung Pangkah development project is at an advanced stage and sanction is expected in the near future. The large amount of data obtained from these two new wells will now be analysed to determine the likely increase in oil and gas reserves, beyond Phase 1. The encouraging production tests of the oil and gas bearing zones within these wells will be utilised in assessing the feasibility of further development of the Ujung Pangkah reservoir.

Commenting on the news, Tom Cross, Dana's Chief Executive, said:

"We are delighted that these two wells have confirmed a significant western extension of the Ujung Pangkah field.

Following the positive production tests of oil and gas in both wells, the joint venture group has extended the rig contract to proceed immediately with the drilling of a well on the West Sidayu prospect, to the north of the Ujung Pangkah field, within the same PSC area. This third well in the programme will explore an area west of the currently undeveloped Sidayu oil field, which was discovered by the Pangkah joint venture group in 2000."

For further information please contact:

Tom Cross, Chief Executive	Dana Petroleum plc	01224 652400
Andy Bostock, Technical Director	Dana Petroleum plc	01224 652400
Nick Elwes	College Hill Associates	020 7457 2020

Notes to Editors:

Sanction of the Ujung Pangkah Phase 1 development project is expected in the near future. Front-end engineering and design studies have been completed and the subsurface development plan agreed. The development will initially comprise 6 production wells drilled from a minimum facility offshore wellhead platform with export via a 16 inch diameter pipeline to an onshore gas processing facility at Gresik, on the coast of East Java.
Principal terms for gas sales are now agreed with PLN, the regional electricity utility company, and final execution of a Gas Supply Agreement is expected to follow. Initial gas production is planned at a plateau rate of 100 million cubic feet per day.
To accommodate the western extension of the field, the facilities at Ujung Pangkah would be extended to include two further satellite wellhead platforms. Commercial provision has also been made within the Gas Supply Agreement to accommodate the additional reserves and thus allow an increase in plateau production rate to 150 million cubic feet per day.
The co-venturers in the Pangkah PSC, which includes the Ujung Pangkah gas field, are Dana (12%), operator Amerada Hess (66%) and ConocoPhillips (22%).