Award of Iraqi Exploration Block

FOR IMMEDIATE RELEASE

30 May 2012

DRAGON OIL PLC

(the "Company" or together with its subsidiaries "Dragon Oil" or the "Group")

Award of Iraqi Exploration Block

Dragon Oil plc (Ticker: DGO), an international oil and gas exploration, development and production company, announced today that a consortium including Dragon Oil has been awarded an exploration, development and production contract (EDPSC) for Block 9 in Iraq's fourth bidding round. Block 9 is located in the Basrah province. Unlike the three previous bid rounds, which offered contracts to foreign energy firms to boost output at existing oil and gas fields, this time Iraq auctioned acreage earmarked for exploration.

Dragon Oil jointly bid with Kuwait Energy and the Turkish Petroleum Corporation (TPAO), the national oil company of Turkey, in respect of Block 9. Kuwait Energy will be the operator in the EDPSC for Block 9, participating with a 40% contractor share, with TPAO having 30% and Dragon Oil 30%. If Block 9 is found to be commercial during the five-year exploration period, the consortium may make an application to the Iraqi Government to develop the block over a 20-year development period.

The consortium's bid for Block 9 was awarded on the basis of a remuneration fee of US$ 6.24 per barrel of oil equivalent. Compared to the previous bid rounds in Iraq, there was no stipulated plateau production target for blocks awarded in this bid round.

Dr Abdul Jaleel Al Khalifa, Chief Executive Officer, said:

"I am delighted to announce the successful bid by the consortium including Dragon Oil in Iraq's fourth bidding round. This was an exploration bid round and, consequently, this award leading to a long-term partnership with Iraq for the exploration of their natural resources represents a milestone for Dragon Oil's exploration strategy in this country. Entry into Iraq has been under consideration for some time and so represents a strategic move for Dragon Oil.

"We look forward to working closely with our joint venture partners to apply our experience and technology in Iraq. Today's announcement marks a significant achievement towards the diversification of our asset portfolio for Dragon Oil."

Further details on this matter will be given at the time of release of the Company's 2012 interim financial statements.

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About Dragon Oil

Dragon Oil plc is an international oil and gas exploration, development and production company, quoted on the London and Irish Stock exchanges (Ticker symbol: DGO). Its principal producing asset is in the Cheleken Contract Area, in the eastern section of the Caspian Sea, offshore Turkmenistan.

Dragon Oil (Turkmenistan) Ltd., a wholly owned subsidiary of Dragon Oil plc, holds 100% interest in and is the operator of the Production Sharing Agreement for the Cheleken Contract Area. The operational focus is on the re-development of two oil-producing fields, Dzheitune (Lam) and Dzhygalybeg (Zhdanov).

www.dragonoil.com

Disclaimer

This news release may contain forward-looking statements concerning the financial condition and results of operations of Dragon Oil. Forward-looking statements are statements of future expectations that are based on management's current expectations and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in these statements. No assurances can be given as to future results, levels of activity and achievements and actual results, levels of activity and achievements may differ materially from those expressed or implied by any forward-looking statements contained in this report. Dragon Oil does not undertake any obligation to update publicly or revise any forward-looking statement as a result of new information, future events or other information.