Transaction in Own Shares

Dragon Oil plc ("Dragon Oil")

Transaction in Own Shares

Dragon Oil announces that on 23 August 2012 it purchased for cancellation 298,786 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 593.5 GB pence and the lowest price paid was 587.5 GB pence. Following the above purchase, Dragon Oil will have 495,164,050 ordinary shares in issue.

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