Press Release

13th April 2004

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

Appraisal Drilling Campaign Commences Offshore Indonesia

Dana Petroleum is pleased to confirm the start of the appraisal drilling campaign in the Pangkah Production Sharing Contract ('PSC') area offshore Indonesia. Drilling operations on the first well in the programme have commenced using the jack-up drilling rig 'Ocean Sovereign'.

Two wells will be drilled to test for the presence of a western extension of the Ujung Pangkah gas field. The wells are expected to add substantial new gas reserves to the current 'core area' reserves of 478 billion cubic feet. If successful, the wells will also be flow tested to provide additional production performance information ahead of finalising the Ujung Pangkah development well locations. The opportunity may also be taken to test the productivity of the Ujung Pangkah oil rim, directly underlying the gas accumulation, where approximately 450 million barrels are mapped in place. Each well is expected to take around one month to complete, excluding any well testing operations.

Enquiries:

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:

1. Development sanction of the Ujung Pangkah gas field is expected by mid 2004. 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" pipeline to an onshore gas processing facility at Gresik.

2. Principal terms for gas sales are now agreed with PLN, the regional electricity utility, and final execution of a Gas Supply Agreement is expected to follow in the near future. Gas production is planned at a plateau rate of 100 mmscfpd.

3. If the appraisal drilling campaign is successful, the facilities at Ujung Pangkah will 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 mmscfpd.

4. The coventurers in the Pangkah PSC, which includes the Ujung Pangkah gas field, are Dana (12%), operator Amerada Hess (66%) and ConocoPhillips (22%).