Press Release

19th September 2006

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

SUCCESSFUL APPRAISAL OF BABBAGE GAS FIELD

Dana Petroleum is pleased to announce the successful appraisal drilling and flow testing of the Babbage Gas Field in the UK Southern Gas Basin.

The Babbage appraisal well, located in North Sea Block 48/2a, was designed to target a crestal area of the field with a view to proving up both gas reserves and productivity in order to proceed with development of the field. The well was spudded on 16 July 2006 and drilled vertically to a total depth of over 11,000 feet. The well encountered gas throughout a substantial, Leman sandstone section and was flow tested at a rate of 10.7 million cubic feet of gas per day, without the need for stimulation. The well will be suspended at the seabed and kept for use as a future gas production well in the field's development.

The Babbage field is located within a short distance of the Ravenspurn North and Hoton gas platforms, and the CMS and ETS pipeline systems. The close proximity to established infrastructure provides a range of attractive development options.

Dana holds a 40% interest in Block 48/2a, with partners E.ON Ruhrgas UK North Sea, 47% (operator), and Centrica Resources, 13%.

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

"The results of this well are highly encouraging and have therefore led the joint-venture group to begin development studies. The partnership has already secured a rig for further drilling and is progressing discussions with a number of host infrastructure owners. Dana looks forward to working with its partners on the development of what is now thought to be one of the largest undeveloped gas fields in the UK North Sea."

For further information please contact:

Tom Cross, Chief Executive	Dana Petroleum plc	01224 652400
Stuart Paton, Technical & Commercial Director	Dana Petroleum plc	01224 652400
Nick Elwes	College Hill Associates	020 7457 2020