Transaction in Own Shares

7 November 2011

Dragon Oil plc ("Dragon Oil")

Transaction in Own Shares

Further to the announcement on 26 September 2011 of the commencement of a limited share buy-back programme to meet all relevant obligations arising from the Company's various share schemes, Dragon Oil announces that on 4 November 2011 it purchased for cancellation 34,869 of its ordinary shares pursuant to the irrevocable arrangement (without Company discretion) that it entered into with Nomura International plc and J&E Davy on 25 September 2011. The highest price paid was 563.00 GB pence and the lowest price paid was 541.00 GB pence. Following the above purchase, Dragon Oil will have 511,034,444 ordinary shares in issue.

Since commencement of the share buy-back programme, Dragon Oil has purchased a total of 5,000,000 of its ordinary shares. The purchase noted above concludes the limited share buy-back programme announced on the 26 September 2011.

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