Press Release

12th July 2005

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

Dana Awarded Exploration Licence Offshore Morocco

Dana is pleased to announce that its wholly owned subsidiary Dana Petroleum (E&P) Limited has now finalised and signed a Petroleum Agreement regarding the exploration for and exploitation of hydrocarbons in the North West Safi area offshore Morocco. The exploration phase of the agreement lasts for a total of eight years and covers a large area spanning 6,540 square kilometres.

The decision to enter into the agreement followed the interpretation of 1,000 km of 2D seismic data acquired in 2004 under the terms of a reconnaissance licence. Together with other geological studies, this confirmed the hydrocarbon potential of the area. Preparations are now underway to acquire a large 3D seismic survey over the area with a view to commencing exploration drilling in 2007.

Dana acquired its rights under the reconnaissance licence in May 2005 through the previously announced transaction with Global Resource Holdings LLLP. The coventurers in the full exploration licence are now: Dana Petroleum (E&P) Limited, 26.25%; operator Norsk Hydro Morocco AS, 48.75%; and Moroccan state organisation L'Office National de Recherches et d'Exploitations Petrolieres ('ONAREP'), 25%.

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