Transaction in Own Shares

Dragon Oil plc ("Dragon Oil")

Transaction in Own Shares

Dragon Oil announces that on 28 August 2012 it purchased for cancellation 470,018 of its ordinary shares pursuant to the irrevocable arrangement (without Company discretion) that it entered into with Nomura International plc and J&E Davy. The highest price paid was 589.50 GB pence and the lowest price paid was 572.00 GB pence. Following the above purchase, Dragon Oil will have 494,588,440 ordinary shares in issue.

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