Dana Gains Additional North Sea Assets

Dana Petroleum has agreed terms with BP Exploration Operating Company Limited to be assigned a 100% operated interest in the exploration sub-areas of UK Southern North Sea Blocks 42/29 and 42/30 and an 81.28% interest in the exploration sub-area of Block 47/5c. All three blocks lie directly to the East of the Cleeton and Neptune field gas transportation and production infrastructure.

Dana will now conduct studies and reprocess existing seismic data with a view to drilling an exploration well to test the Colden Parva prospect, for which preliminary gas in place estimates range up to 170 billion cubic feet ("bcf"). Dana will also review development options for the Monkwell gas discovery located in Block 42/29 adjacent to the Cleeton field infrastructure. Originally discovered in 1968, Monkwell was production tested at rates of up to 27 million cubic feet per day of gas during an appraisal campaign in 1989/90. Gas in place estimates for Monkwell range up to 100 bcf.

Final completion of the transaction, which is subject to normal DTI and partner approvals, is expected to occur in the near future.

Tom Cross, Dana's Chief Executive, commented:

"Dana expects to drill six North Sea exploration and appraisal wells in 2005, the second of which, the Barbara appraisal well, has now commenced. With five other rigs already active on oil and gas development projects, Dana now has a total of six rigs in operation in the North Sea. Our entry into the Monkwell and Colden Parva areas of the Southern North Sea should yield further development and exploration opportunities over and above Dana's current program."