Press Release

25th January 2005

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

Dana Completes Acquisition of Johnston Field Interest

Dana is pleased to announce the formal completion of the North Sea asset deal agreed with Caledonia EU Limited in November 2004. As a result, Dana has now acquired a 27.78% interest in the producing Johnston gas field and associated UK North Sea Blocks 43/27a and 43/26a.

Gas production from the Johnston field is currently flowing at 54 million standard cubic feet per day. This acquisition therefore increases Dana's net North Sea gas production by 15 million cubic feet per day, equivalent to approximately 2,600 barrels of oil per day. Dana's production from the Johnston field should be further boosted in August this year when completion of the ongoing Johnston Field Extension Project is expected to significantly increase overall field production rates to approximately 90 million cubic feet per day, yielding some 25 million cubic feet per day or the equivalent of around 4,300 barrels of oil per day net to Dana's stake.

Completion of the Johnston acquisition is the first of three near-term events which will add to Dana's portfolio of UK oil and gas production. The other two are the completion of the acquisition of an additional 28% interest in the Hudson oil field, taking Dana's stake up to 47.5%, and the start of oil production from the Gadwall oil field in which Dana holds a 50% interest. Following these three transactions, Dana will be producing from eleven oil and gas fields in total, ten of which are located in the UK North Sea.

For further information please contact:

Tom Cross, Chief Executive	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.

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 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 cubic feet per day. 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 deal, 1 July 2004, approximately 162 billion cubic feet of gas had been produced from the Johnston field with remaining recoverable reserves estimated at 133 billion cubic feet. Following completion of the transaction, the Johnston co-venturers are Dana 27.78%, Caledonia 50.11% and Gaz de France 22.11%. Caledonia will remain as Johnston field operator.