Press Release

15th October 2002

DANA PETROLEUM PLC
("Dana" or the "Group")

DANA DELIVERS STRONG PRODUCTION GROWTH IN THE UK NORTH SEA

Completion of UK Asset Portfolio Acquisition

On 20 March 2002, Dana announced that it had entered into an agreement with Agip (U.K.) Limited and its affiliates to acquire a significant portfolio of oil production and development interests in the UK North Sea ("the Agip acquisition"). This agreement was subject to a number of conditions being satisfied, including the approval of Dana's shareholders, which was obtained on 23 July 2002. The Board of Dana is pleased to announce that all remaining conditions required have now been satisfied and the deal has been completed.

The acquisition of these assets from Agip, alongside Dana's growth from its existing oil and gas fields, will enable the Company to increase its oil and gas production significantly. Dana's average production for the first six months of 2002 was 5,275 barrels of oil equivalent per day ("boepd"). By September this had risen to almost 10,000 boepd.

Otter Field Achieves First Oil Production

The Board of Dana is also pleased to announce that on [12th] October 2002, the newly developed Otter field, in which Dana acquired a 19% interest though the Agip acquisition, has commenced production ahead of schedule. The field, operated by TotalFinaElf, is located 150km northeast of Shetland in a water depth of 182 metres and has been developed as an efficient, subsea tie-back to the Shell operated Eider platform. Hydrocarbons are being exported via Eider to North Cormorant using an existing 12" pipeline and onward to Sullom Voe via the Brent and FLAGS system. Field production is expected to reach a plateau rate of around 30,000 barrels of oil per day by the end of the year, which should add approximately 5,700 barrels of oil per day to Dana's overall production.

Dana's Chief Executive, Tom Cross commented:

"Dana has made good progress throughout its asset base in 2002 and is now well positioned. The completion of the Agip deal will transform the Company by significantly increasing production and revenues thus allowing Dana to drive forward its multi-well exploration programme in Europe, West Africa and the Far East. "

 

For further information please contact:

Tom Cross	Chief Executive	01224 652 400
Andy Bostock	Technical Director	01224 652 400
Archie Berens	College Hill Associates	020 7457 2020