Transaction in Own Shares

Dragon Oil plc ("Dragon Oil")

Transaction in Own Shares

Dragon Oil announces that on 31 August 2012 it purchased for cancellation 126,200 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 590.50 GB pence and the lowest price paid was 587.00 GB pence. Following the above purchase, Dragon Oil will have 493,761,240 ordinary shares in issue.

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