Dragon Oil plc ("Dragon Oil")

Transaction in Own Shares

Dragon Oil announces that on 11 July 2012 it purchased for cancellation 390,000 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 572.00 GB pence and the lowest price paid was 565.00 GB pence.  Following the above purchase, Dragon Oil will have 502,599,823 ordinary shares in issue.

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