RNS Number:4983K
Dana Petroleum PLC
29 April 2003


                               DANA PETROLEUM plc

                           ("Dana", or "the Company")



                      DANA TO ACQUIRE 50 PERCENT STAKE IN

THE KITTIWAKE AND MALLARD PRODUCING OIL FIELDS AND SURROUNDING GREATER KITTIWAKE
                                 AREA PROSPECTS



Dana Petroleum plc is pleased to announce that it has entered into agreements in
principle with Shell U.K. Limited ("Shell"), Esso Exploration and Production UK
Limited ("Esso") and Venture Production plc ("Venture") to acquire a 50%
interest in the Kittiwake and Mallard oil fields and surrounding development and
exploration acreage on Blocks 21/17a, 21/18a and 21/19 in the UK Central North
Sea. The deal will also increase Dana's current interest in Block 21/12 (which
contains the Goosander oil field) and Block 21/13a to 50%.



In parallel, Venture will also increase its current interest in the above fields
and Blocks, collectively termed the Greater Kittiwake Area ("GKA") assets, to
50%, thus creating a new, commercially aligned, Dana/Venture 50/50 joint venture
group covering the entire GKA region.  Once completed, Venture will operate the
GKA assets under a new Joint Operating Agreement with Dana.



At completion, Dana will receive a net #2.4 million in cash plus the net
cashflow from the GKA assets in the period since the effective date of 1st
January 2003. This "negative consideration" reflects the transfer to Dana of
part of the decommissioning liabilities associated with the GKA assets



The Kittiwake and Mallard fields, which are both in production, have been
developed via a single slim-line production and drilling platform located over
the Kittiwake field with the Mallard field producing from subsea facilities via
a 15 km pipeline.  Oil is exported from the Kittiwake platform via shuttle
tanker with gas exported via a short spur line into the Shell operated Fulmar
gas pipeline.  Dana expects the two fields to produce at a combined average rate
of approximately 5,300 bopd (2,650 bopd net to Dana) in 2003.



The Blocks surrounding the Kittiwake and Mallard fields contain a number of
satellite development opportunities, including the existing Goosander, Gadwall
and Grouse oil discoveries, and several identified but as yet undrilled
exploration prospects. Total proven and probable reserves to be acquired by Dana
through the series of transactions outlined above is provisionally estimated by
Dana to be around 12 million barrels at the effective date of 1st January 2003.



Commenting on the news, Tom Cross, Dana's Chief Executive, said:



"Dana is delighted to have agreed the principles for this series of
transactions, which, once completed, should see the Greater Kittiwake Area given
a new lease of life.



"This deal demonstrates how new generation UK independents such as Dana and
Venture can create attractive "win-win" deals with major oil companies, to
stimulate further oil and gas activity in particular areas of the UK North Sea
and hence unlock additional value.



"Dana is appreciative of the positive and constructive approach taken by Shell
and Esso during the formulation of this deal and is looking forward to working
with Venture to exploit the full development and exploration potential of the
GKA assets."



Completion of the acquisition remains subject to finalisation of legal
documentation, finalisation of future commercial and operational arrangements
for oil and gas export and DTI and other regulatory approvals. Completion is
expected to take place in the fourth quarter of 2003.

29 April 2003



For further information please contact:


Tom Cross                 Chief Executive              01224 652 400

Andy Bostock              Technical Director           01224 652 400

James Henderson           College Hill Associates      020 7457 2020
Justine Hibbert



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. Since floating on the London Stock
    Exchange in 1996, Dana has achieved growth in oil and gas reserves for 6
    consecutive years. Net assets at end 2002 were #137 million. Dana currently
    produces approximately 16,000 barrels of oil per day, with around 90% of its
    revenues coming from the UK North Sea.



2.      Dana has built up proven and probable oil and gas reserves of
approximately 116 million barrels, prior to this deal. The Company has a strong
exploration track record, having made 11 oil and gas discoveries from its last
14 wells, including six consecutive discoveries in the North Sea.



3.      Dana was a coventurer in the discovery of the Goosander field in 1998
and an appraisal well drilled on the field in 2001. The potential development of
Goosander and the other satellite discoveries in the GKA could add up to 5,000
bopd net to Dana by 2006.  In addition, the Kaynine and Lightning exploration
prospects provide further future upside potential.


4.      To accelerate the development of the existing satellite discoveries
consideration is being given to the acquisition of a new 3-D seismic survey
during late 2003.  The results of this survey would be incorporated into studies
to review development options for the GKA, which could also include further
drilling within the Kittiwake and Mallard fields.



 5. An innovative feature of this transaction is the approach taken to
    decommissioning of the acquired facilities. Shell will retain its share of
    the current decommissioning liability for Kittiwake and Mallard as well as
    responsibility for managing the actual physical decommissioning activity,
    whenever that should occur following the extension to end of field life
    expected under the new operator. Venture and Dana are in the process of
    putting in place the required security for that part of the decommissioning
    not covered by Shell.



 6. Esso Exploration and Production UK Limited is an affiliate of ExxonMobil
    International Limited.





7.   Summary of Licence Interests


Licence                       Current Dana Interest   Interest to be Acquired   Dana Interest Post Deal
                                                                      by Dana
Block 21/18a  & Kittiwake                         0                       50%                       50%
Field

Block 21/19 & Mallard                             0                       50%                       50%
Field

Goosander Field                               37.4%                     12.6%                       50%

Block 21/12                                     49%                        1%                       50%

Block 21/13a                                    45%                        5%                       50%

Blocks 21/17a & 21/17c                            0                       50%                       50%








                      This information is provided by RNS
            The company news service from the London Stock Exchange
END

ACQEAFLNALPDEFE