Dana Petroleum, the independent oil and gas exploration and production company, focused on growth through international exploration and the development of low risk North Sea production, intends to announce its preliminary results for the year ending 31 December 2006 on 30 April 2007.

Prior to entering the close period ahead of these results, Dana is pleased to provide the following operational update and outlook.

Highlights:

* Record average oil and gas production of approximately 22,300 boepd delivered in 2006

* Production capacity increased strongly during 2006 to a new high of 30,000 boepd at year-end

* Currently producing from 13 North Sea oil and gas fields

* Agreed multi-asset deals with Gaz de France across the UK, Egypt, Mauritania and Norway

* Net funds of approximately £110 million at end 2006

* Maximising oil revenues by remaining completely un-hedged

* Proven and probable reserves increased to 130 million barrels of oil equivalent at end 2006, representing a reserves replacement ratio of around 330%

* Secured several new oil and gas licence interests in Egypt and Morocco with major partners

Chief Executive, Tom Cross commented:

'Dana delivered record production in 2006 and is on target for further growth in 2007 with new fields coming on-stream and a very active drilling and development programme across existing properties.

By mid 2007, the Company expects to be producing from 15 North Sea fields, providing a strong and balanced base of quality assets. Dana remains debt free and continues to be completely un-hedged with respect to oil price, thus maximising the benefits from continuing commodity price strength.

With a healthy financial position and a range of attractive opportunities, the Company will continue its intensive drilling programme throughout the next two years, with up to 31 wells currently being planned.'