Transaction in Own Shares

Dragon Oil plc ("Dragon Oil")

Transaction in Own Shares

Dragon Oil announces that on 25 October 2012 it purchased for cancellation 235,924 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 571.00 GB pence and the lowest price paid was 564.50 GB pence. Following the above purchase, Dragon Oil will have 489,462,394 ordinary shares in issue.

The purchase noted above concludes the US$200 million share buy-back programme announced on the 6 June 2012.

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For further information please contact:

Investor and analyst enquiries

Dragon Oil plc (+44 (0)20 7647 7804)

Anna Gavrilova

Media enquiries

Citigate Dewe Rogerson (+44 (0)20 7638 9571)

Martin Jackson