Transaction in Own Shares

Dragon Oil plc ("Dragon Oil")

Transaction in Own Shares

Dragon Oil announces that on 18 October 2012 it purchased for cancellation 392,845 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 582.00 GB pence and the lowest price paid was 578.00 GB pence. Following the above purchase, Dragon Oil will have 491,507,222 ordinary shares in issue.

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Martin Jackson