Corporate Restructuring Review

DRAGON OIL PLC

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

Corporate Restructuring Review Concluded

The Board of Dragon Oil announces that it has decided it will not proceed with a proposed corporate restructuring of the Company which was earlier announced by the Company on 27 March 2009. This announcement is made following an extensive review of the options for, and implications of, a corporate restructuring together with a period of shareholder consultation.

Dragon Oil currently has a primary listing on the both the London Stock Exchange and the Irish Stock Exchange. Dragon Oil meets the UK's highest standards of regulation and corporate governance and, in accordance with recent changes to the UK listing Regime, its London Stock Exchange listing has been designated as a premium listing with effect from 6 April 2010.

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

"The decision not to proceed with the restructuring has been taken after extensive additional review by the Board of the advantages and disadvantages of such a process and has determined that Ireland remains an attractive jurisdiction for the holding company of the Group. Furthermore, the Board has taken on board the comments from its various stakeholders. Dragon Oil remains committed to maintaining the highest standards of corporate governance and the premium listing on the London Stock Exchange should help Dragon Oil develop its profile in international capital markets."

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For further information please contact:

Media enquiries:

Citigate Dewe Rogerson (+44 20 7638 9571)

George Cazenove

Investor and analyst enquiries:

Dragon Oil plc (+ 44 20 7647 7804)

Sally Marshak, Investor Relations

About Dragon Oil

Dragon Oil Plc is an innovative international oil and gas 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 in the Caspian Sea, offshore Turkmenistan. Operational focus is on the re-development of two oil producing fields, Dzheitune (Lam) and Dzhygalybeg (Zhdanov).

www.dragonoil.com

Note

This statement 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.