Transaction in Own Shares

Dragon Oil plc ("Dragon Oil")

Transaction in Own Shares

Dragon Oil announces that on 27 September 2012 it purchased for cancellation 222,000 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 599.50 GB pence and the lowest price paid was 592.50 GB pence. Following the above purchase, Dragon Oil will have 492,465,786 ordinary shares in issue.

- end -

For further information please contact:

Investor and analyst enquiries

Dragon Oil plc (+44 (0)20 7647 7804)

Anna Gavrilova

Media enquiries

Citigate Dewe Rogerson (+44 (0)20 7638 9571)

Martin Jackson

Kate Lehane