Press Release

12 June 2007

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

DANA MAKES STRATEGIC ACQUISITION IN NORWAY

Dana Petroleum plc ('Dana') has today signed conditional subscription and acquisition agreements for shares in the Norwegian independent oil company Ener Petroleum ASA ('Ener') which, upon completion, will lead to Ener becoming a controlled subsidiary of Dana.

Firstly, Dana has agreed terms to conditionally subscribe for 1,518,750 new shares in Ener at a subscription price of NOK 160 per share. The subscription represents approximately 53% of the fully diluted share capital of Ener following the issuance of the new shares to Dana. These funds will be applied to grow the Ener exploration and production business on the Norwegian Continental Shelf.

In addition, Dana has entered into conditional share acquisition agreements for the purchase of certain existing shares in Ener, all at a price per share of NOK 220 payable in cash. Upon completion of these transactions, Dana will control approximately 93.7% of the total shares in Ener, which will then become the Norwegian subsidiary of Dana. Once Dana has reached 100% shareholding in Ener, the effective purchase price Dana will have paid to acquire 100% of Ener will be approximately £24 million.

The transactions are subject to certain conditions, including regulatory approvals from the Norwegian Ministry of Petroleum and Energy and The Norwegian Ministry of Finance.

Chief Executive Officer of Dana Petroleum, Mr Tom Cross commented:

"The acquisition of Ener is directly in line with Dana's strategy, which is delivering strong growth from exploration and production across the North Sea and Africa.

This deal represents an important step for Dana as it will create a substantial business in Norway with the technical and financial strength to build further. Upon completion of this transaction and pending completions in Egypt, the Dana Group's total number of producing fields will rise to 30, of which 17 will be in the North Sea. The Ener deal will add to Dana approximately 5,400 barrels of oil equivalent per day and most importantly accelerate a portfolio of attractive business opportunities in Norway, with the first exploration target scheduled for drilling in the next quarter."

 

For further information please contact:

Tom Cross, Chief Executive	Dana Petroleum plc	01224 652400
Nick Elwes	College Hill Associates	020 7457 2020
Erik Faureng	ABN AMRO, Norway	+47 2200 5052
Andrew Foster	ABN AMRO, London	020 7678 7106

Nothing in this announcement should be construed as a profit forecast or be interpreted to mean that the future profits of Dana will necessarily be greater than the historical published profits of Dana.

This document does not constitute or form part of any offer or invitation to sell, allot or issue or any solicitation of any offer to purchase or subscribe for any securities, nor shall it (or any part of it) or the fact of its distribution form the basis of or be relied upon in connection with, or act as any inducement to enter into any contract or commitment for securities.

Forward-looking statements

Some of the statements in this announcement are forward-looking. Forward-looking statements include statements regarding the intent, belief and current expectations Dana or its officers with respect to various matters. When used in this announcement, the words 'expects,' 'believes, ''anticipates,' 'plans,' 'may,' 'will,' 'should' and similar expressions, and the negatives thereof, are intended to identify forward-looking statements. Such statements are not promises or guarantees, and are subject to risks and uncertainties that could cause actual outcome to differ materially from those suggested by any such statements. These forward-looking statements speak only as of the date of this announcement. Information contained in this announcement cannot be relied upon as a guide to future performance. Dana expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statement contained herein to reflect any change in its expectations with regard thereto or any change in events, conditions or circumstances on which any forward-looking statement is based.

Copies of this announcement are not being, and must not be, mailed or otherwise forwarded, distributed or sent in, into or from the United States of America, Canada, South Africa, the Republic of Ireland, Australia or Japan.