Transaction in Own Shares

Dragon Oil plc ("Dragon Oil")

Transaction in Own Shares

Dragon Oil announces that on 2 July 2012 it purchased for cancellation 56,000 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 555.00 GB pence and the lowest price paid was 542.50 GB pence. Following the above purchase, Dragon Oil will have 505,238,376 ordinary shares in issue.

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