Re Agreement

RNS Number:4255Q
Dana Petroleum PLC
24 January 2002


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


                       Dana Farms Out Australian Licence
                        ahead of New Drilling Programme


Dana Petroleum is pleased to announce that it has reached agreement with
Australian companies Origin Energy Limited and Voyager Energy Limited for Origin
and Voyager to earn 30% and 5% equity interests respectively in the WA 226-P
Permit in the Northern Perth Basin, offshore Western Australia.  To earn their
interests, Origin and Voyager will contribute on a promoted basis to the
drilling of an exploration well by November 2002.  Origin will operate the well
from their Australian offices.

WA 226-P is located approximately 230km northwest of Geraldton and covers a
large, under-explored extension of the northern Perth Basin. An earlier
exploration probe in WA 226-P, the Livet-1 well, encountered an interpreted 65
feet of residual oil column in a reservoir thought to have been breached by
fault activity following the formation of the original trap. The prospectivity
of this region has recently been further upgraded by the significant oil
discoveries in the 'Cliff Head' wells to the South, operated by Roc Oil, and the
Hovea 1 oil discovery located onshore in permit L1, operated by Origin.

The next WA 226-P well will be drilled on the Morangie structure which has been
identified and interpreted by Dana to have the potential to contain up to 250
million barrels of oil in place.  The target reservoir is the sandstones of the
Wagina Formation below the Kockatea Shale regional seal, the same reservoir/seal
relationship recorded in other Perth Basin oil and gas fields. Several large
follow up prospects are also present in WA 226-P.  These will be evaluated
following the drilling of Morangie.

Participants in WA 226-P following completion of the farm-ins will be:


Dana Petroleum plc                              52.00%
Origin Energy   Limited                         30.00% (operator)
Black Rock Petroleum                            13.00%
Voyager Energy Limited                          5.00%



The above post farm-in interests take into account the withdrawal of EDC
Australia in November 2001. Subject to government approval, the current
Co-venturers are Dana Petroleum (80% and operator) and Black Rock Petroleum
(20%).



Commenting on the successful farm-out, Tom Cross, Dana's Chief Executive, said:



"This is an excellent deal for Dana shareholders.  Morangie is an exciting
prospect in an emerging area, which can now be drilled this year.  By
successfully farming out to Origin and Voyager, Dana has kept a large interest
in any future oil and gas discoveries whilst also minimising its own drilling
costs."

                                                              24 January 2002



Enquiries:

Dana Petroleum plc                                       Tel: [phone]
Tom Cross, Chief Executive
Andy Bostock, Technical Director

College Hill Associates                                  Tel: [phone]
Archie Berens





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