26th September 2006

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

EXPLORATION DRILLING UPDATE

Drilling and wireline logging have now been completed on the Flamant-1 exploration well in Block 8, offshore Mauritania.

Although the well discovered the prognosed extensive carbonate section, the well did not encounter commercial quantities of hydrocarbons. However, there were indications of gas whilst drilling the approximately 1,150m thick carbonate primary target. In addition, gas bearing intervals were encountered during the drilling of a shallower section of the well, which indicates there is mature hydrocarbon source rock in this area. The extensive information acquired from the well, which includes rock samples and pressure data, will now be fully evaluated before agreeing the most appropriate forward plan for the block.

The discovery of the presence of a major carbonate sequence, together with the indications of hydrocarbons, provides encouragement to explore the significant remaining potential of Block 8, which covers a very large area of approximately 11,797 square kilometres.

Following the completion of abandonment operations on Flamant-1, the Atwood Hunter drilling rig will move to Block 7, offshore Mauritania to drill the Dana operated Aigrette well.


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

Notes to Editors:

1. The participating interests in Block 8 are as shown below. Dana currently holds a 41.5% interest in the block. This is expected to move to 26% following the completion of ongoing commercial transactions which have provided Dana with a significant financial carry on its drilling costs offshore Mauritania.

Company
Current Interest
Interest post completion of ongoing transactions Block 8
Dana Petroleum (E&P) Limited
41.50%
26.00%
Hardman
18.00%
18.00%
Gaz de France UK B.V.
13.50%
26.00%
Wintershall AG
25.00%
25.00%
ROC Oil (* holder of 3% option)
2.00%
*5.00%

2. The Flamant-1 well was drilled to a total depth of depth of 3,275 metres below sea-level. The top of the main target was encountered at 2,111 metres depth. A full suite of electric wireline logs, pressure data and rock samples have been acquired.