Press Release

28th September 2006

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

DANA COMPLETES EXCHANGE DEAL WITH GAZ DE FRANCE AND SECURES ADDITIONAL ASSETS

Dana Petroleum is pleased to announce that its wholly owned subsidiary, Dana Petroleum (E&P) Limited, has completed its asset exchange transaction with Gaz de France in which Dana has secured new production in the UK and exploration in the Nile Delta. In addition, Dana has agreed to acquire a number of additional assets from Gaz de France.

Through the exchange transaction, Dana has gained a 25% interest in the UK producing Anglia gas field, an additional 22.113% interest in the UK producing Johnston gas field and a 30% interest in the production sharing contract for the West El Burullus Concession in the Nile Delta, offshore Egypt. In exchange for the above assets, Dana has assigned to Gaz de France a 24% interest in Block 1, a 27.85% interest in Block 7 and a 17.5% interest in Block 8, all offshore Mauritania. Dana will remain as operator of the Mauritania blocks and Gaz de France will continue to operate Anglia and West El Burullus. In addition, Gaz de France will pay all of Dana's costs associated with three exploration wells in Mauritania, one on each of the blocks, up to a cumulative cap of 30 million US dollars. In a reciprocal arrangement, Dana will pay for an additional 30% of costs associated with the first exploration well in the West El Burullus Concession up to a cumulative cap of three million US dollars.

As a result of this transaction, Dana's North Sea gas production has increased by approximately 13 million standard cubic feet per day (2,100 barrels of oil equivalent per day). Dana estimates the exchange will add approximately 19 billion cubic feet of North Sea proven and probable gas reserves to the Company (3.2 million barrels of oil equivalent).

In addition to completing the exchange transaction, Dana has further agreed the acquisition of a number of additional assets from Gaz de France. The companies have already signed a detailed agreement, which is subject to approval of the relevant national authorities, in respect of an additional 20% interest in the West El Burullus exploration licence in the Nile delta, offshore Egypt. In addition, Dana and Gaz de France have agreed headline commercial terms for the assignment from Gaz de France to Dana of further assets, details of which are expected to be announced in October.

Tom Cross, Dana's Chief Executive, commented:

"We are delighted to have completed the exchange transaction with Gaz de France at the same time as agreeing to increase our interest in West El Burullus to 50%, further cementing our relationship with Gaz de France in Egypt. This deal has added a valuable new area with significant growth potential to Dana's international business whilst continuing the growth of our North Sea gas portfolio. Furthermore, in being substantially free carried in relation to our ongoing drilling programme in Mauritania, we have substantially improved the risk/reward profile of Mauritania for our shareholders.

This deal is completely in line with Dana's strategy of crystallising longer term exploration value by trading part of those assets for proven and producing oil and gas further advanced in the value chain. Whilst building new exploration opportunities in Egypt and gaining new gas production in the North Sea, we have also maintained our geographic focus on the North Sea and Africa."

 

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 West El Burullus ("WEB") concession covers an area of 1,361 square kilometres located directly off the Mediterranean coast of Egypt to the south-west of BG's Rosetta and West Delta Deep Marine fields. Water depths are predominantly less than 200 meters. The Nile Delta has emerged as a prolific gas basin where gas production and LNG infrastructure is now established and world class discoveries continue to be made, for example BP's 'Raven' gas discovery which is located just to the west of the WEB concession. The eight year WEB production sharing contract became effective in October 2005. A large 3D seismic survey is planned in 2006 with a view to commencing exploration drilling in 2007. Following completion of the above transactions, the West El Burullus partners will be Dana 50% and Gaz de France Exploration Egypt BV 50%.

2. The Anglia gas field is located some 90km off the Lincolnshire coast. The field, which commenced production in 1991, produces from six wells to a normally unmanned platform tied back via a 24km pipeline to the ConocoPhillips operated LOGGS facility from where the gas is transported 90 kilometres to shore for processing and subsequent sale at the ConocoPhillips operated Theddlethorpe gas terminal. Under the exchange agreement, 25% of Dana's gas will be sold under a fixed price 'life-of-field' gas sales contract with the remaining 75% sold on an open market price linked contract. Following completion of the exchange, the Anglia co-venturers are Dana 25%, Gaz de France Britain Limited 30% , First Oil 32.80% and RWE Dea 12.2%.

3. The Johnston Field, in which Dana already holds a 27.78% interest, is located some 90 km off the Yorkshire coast. 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. Following completion of the exchange, the Johnston co-venturers are Dana 49.89% and E.ON Ruhrgas 50.11%.

4. Dana's Mauritanian concessions currently cover a total offshore area of 37,771 square kilometres. Mauritania is emerging as a new petroleum region with first production from the Chinguetti field established in February 2006. Dana's next well in Mauritania targets the Aigrette prospect in Block 7 and is due to spud at the beginning of October.

5. In addition to Blocks 1, 7 and 8, which feature in the exchange with Gaz de France, Dana holds a 6.25% interest in Block 2, located directly to the north of Block 1. Dana also holds a 30% interest in the St. Louis concession located offshore Senegal, directly to the south of Block 1 and contiguous with it. Following completion of the exchange agreement, the Block 1 coventurers will be Dana 36% and operator, Gaz de France 24%, Tullow 20%, Hardman 18% and Roc 2%; the Block 7 coventurers will be Dana 36% and operator, Gaz de France 27.85%, Woodside 15%, Hardman 16.2% and Roc 4.95%; and subject to this and other ongoing transactions the Block 8 coventurers are expected to be Dana 26%, Gaz de France 26%, Wintershall 25%, Hardman 18% and Roc 5%.