Press Release

27th June 2003

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

Proposed consolidation of ordinary share capital

Dana is proposing to consolidate its ordinary share capital and has today written to shareholders to explain why the Directors consider this to be in the best interests of the Company and its shareholders as a whole and to recommend that shareholders vote in favour of the resolution to approve the Consolidation at the Annual General Meeting to be held on 29 July 2003.

The Board is proposing a capital reorganisation which, if approved, will involve the consolidation of the existing ordinary share capital of the Company on the basis of 1 new ordinary share of 15p each for every 15 existing ordinary shares of 1p each (the "Consolidation").

The aims of the capital reorganisation are as follows:

• To enable the Company's shares to trade at a price more in line with that of other comparable listed oil and gas companies;
  
  
• To reduce the number of shares in issue to more appropriately reflect the size of the Company;
  
  
• To reduce the spread between the bid and offer price for the existing shares as a proportion of the share price;
  
  
• To improve the attractiveness, liquidity and marketability of the ordinary shares and in particular;
  
  
• To remove the perception of some investors that the existing shares are viewed as "Penny Shares"

After Consolidation, the consolidated shares will each have the same rights attaching to them and ranking for dividend as currently held by the existing shares. The terms of the existing employee share schemes and the US$12,500,000 unsecured Convertible Loan Notes 2007, will be adjusted accordingly.

The Consolidation will require the approval of shareholders by ordinary resolution at the Annual General Meeting, details of which have been posted to shareholders today.

Application has been made for the consolidated shares to be admitted to the Official List of the UK Listing Authority and to trading on the London Stock Exchange's market for listed securities. It is intended that such admission will become effective and that dealings in the consolidated shares will commence on 30 July 2003.

 

For further information please contact:

Tom Cross, Chief Executive	Dana Petroleum plc	01224 652400
David MacFarlane, Finance Director	Dana Petroleum plc	01224 652400
James Henderson	College Hill Associates	020 7457 2020
Jusine Hibbert	College Hill Associates	020 7457 2020

Notes to Editors:

1. Dana Petroleum plc is an independent oil and gas company focused on growth through high-impact international exploration and the development of low risk production from the UK North Sea. The Company had net assets at end 2002 of £137 million. Dana currently produces approximately 16,000 barrels of oil equivalent per day, around 90% of which now comes from the UK North Sea.

2. The Company has a strong exploration track record, having made 11 oil and gas discoveries from its last 14 wells. Coupled with a successful acquisition strategy, Dana has delivered year-on-year growth in oil and gas reserves since floating on the London Stock Exchange in 1996. Dana's proven and probable petroleum reserves were 116 million barrels of oil equivalent at the end of 2002.