Press Release

28th July 2005

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

Annual General Meeting

Dana is pleased to report that at its Annual General Meeting held earlier today all resolutions were approved by shareholders.

Commenting on the progress and activities of the Company, Mr Colin Goodall, Dana's Chairman, made the following statement:

"Dana's track record of year-on-year growth continued in 2004. New highs in production and reserves were coupled with record financial performance and the Company ending the year with a significant net cash position. Dana also met its key objective of positioning the Group for an unprecedented level of activity in 2005 and 2006 through a combination of technical progress and commercial deals.

In particular, Dana pursued its strategy of exchanging part of its early exploration success for cash generative North Sea production, trading into the Johnston and Hudson fields and exiting Indonesia, where considerable value was added ahead of sale through a successful appraisal campaign. Dana also built its acreage position in and around Block 1 in southern Mauritania and around the Barbara area of the Central North Sea, ahead of important drilling events in 2005. The Group gained significant new exploration licences in the North Sea and Australia and realised profits from Russia by finalising the terms for the sale of its minority shareholding in Evikhon at an attractive cash price.

On the development front, the Banff gas re-injection project was successfully completed in 2004 and the Gadwall and F16-E development projects were initiated. Extensive technical progress was also made across the Company's assets to firm up an ambitious, 18 well 2005/06 exploration and appraisal drilling programme, including the acquisition of key seismic surveys offshore Mauritania, Kenya and Australia.

Dana has continued to build on these foundations to make excellent progress in 2005. The deals to acquire a new interest in the Johnston gas field and an increased equity in the Hudson oil field were completed in January and March respectively, adding good quality North Sea production and reserves. Dana was also approved by its co-venturers and the DTI as production operator of the Hudson field. This significant achievement will provide the Company with greater opportunities through its ability to manage production operatorships in the future.

The Company additionally concluded deals to enter new exploration licences in both of its core areas. In the North Sea, new licences have been gained in the northern, central and southern sectors, all with near term drilling, and a new eight year exploration licence, NW Safi, has been awarded offshore Morocco in an area where preliminary indications from recently acquired seismic are very encouraging.

Dana's attractive 2005/06 exploration and appraisal drilling programme began positively, with the discovery in March of the Melville oil field, located only six kilometres to the south of the Hudson field. The next well in the programme, 23/16b-10, is currently being drilled and has also been successful. This well has confirmed the presence of additional hydrocarbons some one and a half kilometres to the east of the Barbara field discovery well in the Central North Sea. Following the completion of 23/16b-10, two further exploration wells will be drilled to test the Fiacre and Clachnaben oil prospects as part of the current Dana operated programme using the Bredford Dolphin drilling rig. Alongside this North Sea programme, Dana is planning to drill an important exploration well in Block 1, offshore Mauritania. Following encouragement from the recent electromagnetic surveys, the Block 1 joint venture group has decided that this well should be drilled to test the Faucon prospect which has the potential to contain over one billion barrels of oil.

With the pace of the North Sea programme set to continue and further high impact exploration wells being planned offshore Mauritania and Kenya in 2006, Dana anticipates drilling a further sixteen exploration and appraisal wells, in addition to the Melville and Barbara wells, in the 2005/06 time period. Together these wells will target a total of 1.3 billion barrels of reserves net to Dana.

Of the new field development projects kicked off in 2004, the Gadwall field was brought on stream in April and has performed well leading to the decision to drill a water injection well in the field later in the year, with the objective of maintaining production levels and boosting reserves. Good progress has also been made on the F16-E development in the Netherlands sector of the North Sea, with the result that the field is now expected to commence gas production in October, some two months earlier than planned.

Dana is also actively pursuing incremental development opportunities within fields already in production. A new horizontal water injection well in the Mallard field has been successfully drilled and is now being completed, as is a new, long-reach production well in the Johnston gas field targeting the 'tail' area of the field. In addition, a workover campaign is in progress designed to boost oil production from the Otter field and a programme of infill drilling and workovers continues at Claymore.

Three new fields are targeted for development sanction in 2005. Development approval for the trans-median Enoch oil field has now been received from both the UK and Norwegian governments, approval for the Cavendish gas field is expected shortly and sanction of the Goosander oil field is anticipated within the next few months. All three of these fields are expected on stream in the second half of 2006.

Dana is consequently driving ahead across all areas of its business with six drilling rigs now working in the North Sea on Dana projects. As a result, production in the second half of 2005 is expected to be significantly ahead of production for the first half of the year, which was constrained by development activity to an average of around 18,800 boepd. The Company currently anticipates that average rates for the full year will be in the range of 22,000 to 24,000 boepd, however the final average for the year will naturally be sensitive to the start-up timing and early performance of the numerous ongoing development activities on existing producing fields.

Over 80% of Dana's 2005 production will be oil and over 90% will come from the North Sea. The Company has no oil price or exchange rate hedging in place for 2005 or beyond and is therefore benefiting fully from the strength in both oil prices and the US dollar. Dana is consequently in an excellent financial position, with no net debt, significant net cash, and very strong cashflow. The Group will utilise this healthy position to accelerate the extraction of the potentially large upside value within Dana's portfolio of quality assets and continue the pursuit of carefully targeted acquisitions and new venture opportunities.

Finally, I would like to pay tribute to Dana's executive management and staff, who have delivered a consistently high level of performance, and to thank Dana's shareholders for their continued support."


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