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    Dana Petroleum PLC
    08 November 2005



    Embargoed until 07.00 hrs on 8th November 2005



    PRESS RELEASE

    DANA PETROLEUM PLC ("Dana" or "the Company" or "the Group")

    Dana Expands International Business into Algeria and Egypt, Increases North Sea
    Gas Production and Secures Free Carry in Mauritania

    Dana Petroleum plc is pleased to announce that its wholly owned subsidiary, Dana
    Petroleum (E&P) Limited, has signed two agreements with subsidiaries of Gaz de
    France ("GDF"), a leading European gas and LNG player. In the first of these,
    GDF has agreed to assign to Dana a 15% working interest in the production
    sharing contract for Blocks 352a and 353, located in the prolific Sbaa basin,
    onshore south-west Algeria, for a cash consideration of US$93 million. An
    estimated 2.6 trillion cubic feet of recoverable gas has been discovered on
    these blocks to date within seven main accumulations of which the largest,
    containing approximately half this volume, is the Oued Zine field. Although
    commerciality has not yet been formally declared, a development plan is under
    preparation with gas production scheduled to commence in 2010 at rates of 560
    million standard cubic feet per day.

    In parallel with this acquisition, Dana and GDF have executed an exchange
    agreement by which Dana will be assigned three significant assets in the UK and
    Egypt. Firstly, Dana will gain a 25% interest in the producing Anglia gas field
    and associated UK North Sea Blocks 48/18b, 48/19b and 48/19e. Secondly, the
    Company will receive an additional 22.113% interest in the producing Johnston
    gas field (together with a 30% interest in associated UK North Sea Block 43/
    27a), this will take the Group's total interest in Johnston gas production up to
    approximately 50%. Thirdly, Dana will gain a 30% interest in the recently
    awarded production sharing contract for the West El Burullus Concession in the
    Nile Delta, offshore Egypt. The Nile Delta has now emerged as a prolific
    hydrocarbon basin, where gas production and LNG infrastructure is well
    established and large discoveries continue to be made.

    In exchange for the above assets, Dana has agreed to transfer to GDF a 24%
    interest in Block 1 offshore Mauritania, a 27.85% interest in Block 7 and a
    17.5% interest in Block 8. Dana will thus retain a 36% interest in Blocks 1 and
    7 and a 24% interest in Block 8. Dana will remain as operator of all three
    blocks. In addition, GDF will pay all of Dana's costs associated with the next
    three deep-water exploration wells offshore Mauritania, one well is planned on
    each of the blocks, up to a cumulative cap of US$30 million. The Company will
    pay for an additional 30% of costs associated with the first exploration well in
    the West El Burullus Concession up to a cap of three million US dollars.

    On completion of the exchange transaction, Dana's North Sea gas production is
    expected to rise by approximately 18 million standard cubic feet per day (3,100
    barrels of oil equivalent per day). At the effective date of the deal, 1st July
    2005, Dana estimates the exchange will also add 43 billion cubic feet of North
    Sea proven and probable gas reserves to the Company (7.4 million barrels of oil
    equivalent).

    On completion of the acquisition of the Algerian interest, Dana will add 390
    billion cubic feet of contingent gas resources on a working interest basis (67
    million barrels of oil equivalent). A proportion of these resources are expected
    to become proven and probable reserves in 2006 once commerciality is confirmed.

    Final completion of the two transactions, which are subject to normal regulatory
    and partner approvals, is expected to take place in early 2006.

    Tom Cross, Dana's Chief Executive, commented:

    "This is an excellent deal for Dana. It delivers immediate production and
    cashflow from two UK fields and will add significant new reserves in both the
    near term and medium term in the Company's core areas of the North Sea and
    Africa. Dana also gains strategic entry into two world class hydrocarbon basins
    in Algeria and Egypt and will be well positioned holding high calibre assets in
    each, with the potential to grow further through drilling from late 2005
    onwards.
    These two transactions are directly in line with Dana's strategy of periodically
    crystallising a part of the long term exploration value the Group is creating by
    swapping for proven and producing oil and gas assets which are closer to market
    and hence will achieve earlier returns.

    By trading a minority of its current position in Mauritania, Dana has added two
    quality new areas with major upside potential to its international programme and
    accelerated the growth of its North Sea gas business. The Group has also
    substantially improved the risk/reward profile of Mauritania exploration
    drilling for its shareholders, whilst maintaining sufficiently large stakes for
    any exploration success to be a Company transforming event. This deal locks in
    the value created to date in Mauritania and reduces capital requirements through
    the next phase of deep-water exploration drilling to a minimum.
    Dana is delighted to be building upon its already successful UK relationship
    with Gaz de France, with whom it will now be working across four countries,
    Algeria, Egypt, Mauritania and the UK."

    For further information please contact:
 
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