Press Release

23rd November 2004

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

Dana Increases its UK Production through Trade into Johnston Field

Dana is pleased to announce that its wholly owned subsidiary, Dana Petroleum (E&P) Limited, has signed an exchange agreement with Caledonia EU Limited by which Dana will acquire a 27.78% interest in the producing Johnston gas field and associated UK North Sea Blocks 43/27a and 43/26a. In exchange, Dana will transfer a 30% interest in Blocks 23/16c, 23/16d and 23/17 and pay a balancing cash consideration at completion. Block 23/16c contains part of the Barbara gas discovery.

On completion of the transaction, Dana's North Sea gas production is expected to rise by approximately 17 million standard cubic feet per day, equivalent to around 2,800 barrels of oil per day. At the effective date of 1st July 2004, Dana estimates the acquisition will add 37 billion cubic feet of gas reserves to the Company, equivalent to 6.2 million barrels of oil. This is offset by the divestment of reserves in Block 23/16c equivalent to 1.4 million barrels of oil.

Final completion of the transaction, which is subject to normal regulatory and partner approvals, is expected to take place in late 2004 or early 2005.

Tom Cross, Dana's Chief Executive, commented:

"This is the second time in two months that Dana has used a small fraction of its long-term, undeveloped reserves to trade into current North Sea production, thus accelerating cash flow and significantly increasing investment returns. During the first quarter of 2005, completion of this Johnston deal together with start up of the Gadwall oil field will further strengthen Dana's portfolio which will then be producing from eleven oil and gas fields."


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. The Johnston Field is located in UK Southern North Sea Blocks 43/26a and 43/27a in 150 feet water depth, some 90 km off the Yorkshire coast. The Leman sandstone reservoir is at a depth of around 10,000 feet. Gas production commenced in 1994 from three subsea wells connected by a 9.6 km pipeline to the BP operated Ravenspurn North central processing platform. After processing at Ravenspurn North, the gas is transported ashore for sale at the Dimlington gas terminal. Current production rates are around 60 million scfpd.

  2. The Johnston Field Extension ('JFE') project, involving the drilling and tie-back of a fourth production well in the 'tail' of the field, has been approved by the existing co-venturers. A contract has been awarded to the Noble Julie Robertson jack-up rig to drill the JFE well in the second quarter of 2005 with first gas from this well expected to flow in August 2005. As a result, overall field production rates are expected to increase to approximately 90 million scfpd. A further production well location has been identified in the main area of the field and is under review for drilling in 2006.

  3. At the effective date of the asset exchange, 1 July 2004, approximately 162 bcf of gas had been produced from the Johnston field with remaining recoverable reserves estimated at 133 bcf. Following completion of the transaction, the Johnston co-venturers will be Dana 27.78%, Caledonia 50.11% and Gaz de France 22.11%. Caledonia will remain as Johnston field operator.

  4. Dana and its co-venturers discovered the Barbara field in 2002 with the 23/16c-8 exploration well. 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. As Barbara field operator, Dana is focused on determining the optimum location for appraisal drilling, currently scheduled for 2005.

  5. Following completion of the transaction the Block 23/16c co-venturers will be Dana 50% and operator, Caledonia 30% and Eni 20%. A final balancing cash sum for the transaction will be determined at completion following adjustments for net cash flow, working capital movements and Johnston gas sales since the effective date of 1 July 2004.