Press Release

20th June 2005

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

Dana Increases Stake in Barbara Field Area and
Confirms Drilling of next 4 North Sea Wells

Dana Petroleum is pleased to announce a number of recent commercial transactions and operational events which have enhanced the Company's near-term North Sea exploration and appraisal programme.

Firstly, Dana has agreed a farm-in with Shell U.K. Limited and Esso Exploration and Production UK Limited, an ExxonMobil subsidiary. Under this agreement, Dana will drill a well in an area of UK North Sea Block 23/16b into which the Barbara gas-condensate discovery is mapped to extend. The well will appraise the extent of the original discovery made by Dana and its coventurers with the 23/16c-8 exploration well in the neighbouring block. In return for drilling the well, Dana will be assigned a 50% interest in, and operatorship of, the Barbara extension-area within Block 23/16b.

Secondly, Dana has agreed a two-for-one farm-out to Endeavour Energy UK Limited ("Endeavour") whereby Endeavour will fund 40% of the cost of an exploration well to test the Fiacre prospect in UK North Sea Block 23/11, which lies directly to the north-east of the Barbara field. In return, Endeavour will be assigned a 20% interest in the Fiacre sub-area of Block 23/11, which specifically excludes the mapped extension of the Barbara field into 23/11. Dana will therefore pay 40% of the Fiacre well cost whilst retaining a 60% interest in, and operatorship of, the block.

Under the terms of the agreement with Endeavour, Dana has also been granted the reciprocal right, effective until the end of 2006, to participate on a similar 'two-for-one' basis for up to a 20% working interest in Dana's choice of up to two UK North Sea exploration or appraisal wells in which Endeavour has an interest.

Both the forthcoming Barbara appraisal and Fiacre exploration wells will be drilled as part of Dana's 2005 North Sea operated programme. The Bredford Dolphin semi-submersible drilling rig has been contracted for this work with the Barbara appraisal well expected to start in July. This will be followed by the Fiacre exploration well and subsequently, the Clachnaben exploration well in Block 211/22a, in which Dana built a majority interest earlier this year.

A further exploration well has also been approved in the Netherlands sector of the North Sea, to test the E18a-DF prospect. This well will follow completion of the adjacent F16-E gas field development which is now due on-stream in October 2005, some two months ahead of schedule.

Tom Cross, Dana's Chief Executive, commented:

"The four North Sea wells we have confirmed today follow on from the Melville oil discovery, drilled in March. In addition, an appraisal well is being considered on the Wagtail discovery, in the Greater Kittiwake Area, towards the end of the year. We therefore anticipate drilling a total of six North Sea exploration and appraisal wells in 2005, targeting some 50 million barrels of reserves net to Dana."

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

Notes to Editors:

1. Dana and its coventurers discovered the Barbara field in 2002 with the 23/16c-8 exploration well, which encountered a total of over 270 feet of good quality Forties sandstone reservoir, full to the base of the sand with rich gas-condensate.

2. Dana's current estimates of most-likely recoverable reserves from the Barbara field are around 120 bcf of gas and four million barrels of associated hydrocarbon liquids. However, since a hydrocarbon-water contact was not encountered in the discovery well, there is the possibility of additional upside reserves, the appraisal of which is the objective of the forthcoming well in Block 23/16b. Barbara is located within tie-back distance of both the Everest and ETAP production and export infrastructure systems thus providing future development options for the field.

3. On completion of the farm-in obligations, the 23/16b (Barbara extension-area) coventurers will be Dana 50% and Operator, Shell 16.67% and Esso 33.33%. The current 23/16c coventurers are Dana 50% and Operator, Caledonia Oil & Gas 30% and Eni 20%.

4. The Fiacre prospect is a Jurassic age sandstone structure, located entirely within Block 23/11, with the potential to contain 105 million barrels of oil in place. On completion of the farm-in obligations, the 23/11 (Fiacre sub-area) coventurers will be Dana 60% and Operator, Endeavour 20% and Eni 20%. The Coventurers in the remaining area of Block 23/11, which contains an extension of the Barbara field, will remain Dana 80% and Operator and Eni 20%.

5. The Clachnaben prospect lies in Block 211/22a in the northern sector of the UK North Sea, adjacent to the Cormorant/Brent export infrastructure through which Dana's existing Hudson and Otter fields currently produce. This Brent sandstone prospect is calculated to contain around 60 million barrels of oil in place on a most likely basis. If drilling is successful, it is envisaged that a fast-track subsea tie-back development would be pursued jointly with the adjacent 211/22a-1 discovery, drilled in 1977, which flowed 31 degree API oil.

6. Dana acquired a 24.2% interest in Block 211/22a in January 2005 from CNR International (U.K.) Limited. Dana subsequently concluded a farm-in agreement with its coventurer in Block 211/22a, Antrim Resources, whereby Dana will increase its interest to 79% in the northern and western areas of the block by drilling an exploration well to test the Clachnaben prospect.

7. The E18a-DF prospect is a combined Lower Slochteren and Carboniferous sandstone target calculated to contain 218 bcf of gas on a most likely basis. The E18a coventurers are Dana 5%, Wintershall 27.4% and Operator, CLAM 9.6%, Goal 8% and EBN 50%.