Dana Gas press statement in respect to recent commentary and speculation regarding the Company’s convertible sukuk and volatility in its share price.

With respect to recent commentary and speculation regarding the Company’s convertible sukuk and volatility in its share price, Dana Gas PJSC wishes to make the following statement.

Dana Gas has grown to become the Middle East’s largest regional private sector natural gas company. In 2011, the Company continued to demonstrate robust operational performance, maintain strong financial discipline, and pursue significant growth initiatives.

In the 9 months to 30 September 2011, revenues were $515 million, a significant increase on the $487 million which was achieved in the whole of 2010. Our average production in 2011 grew to over 66,200 barrels of oil equivalent per day. This is an increase of 19% compared with the 55,500 barrels of oil equivalent per day we produced in 2010. Moreover, Dana Gas has successfully increased its proved and probable reserves to 152 million barrels of oil equivalent at the end of 2010.

With reference to its Convertible Sukuk which are not due until 31 October 2012, the Company has been proactive in taking the initiative to mandate advisors including an international financial advisor and will update the market with its plans in good time and due course. Dana Gas over the last four years has timely and consistently paid on or before the due date the sukuk profit amount and will continue to do so pursuant with its obligations.

Dana Gas maintains strong positive relationships with its host Governments, and is progressing constructive discussions with the Egyptian Government covering the delayed payments due from government owned entities owing to the unrest in that country over the past year. In 2011, a total of $177 million in cash attributable to its share of receivables was collected from Egypt and Kurdistan.

Mr Ahmed Al-Arbeed, CEO Dana Gas, commented: “Dana Gas is successfully delivering on its strategy of growing its oil and gas operations in three major hydrocarbon basins. It is important to view the Sukuk in the wider context of a highly successful company which has already achieved very substantial asset values, together with significant revenue and production growth in its relatively short history, and has great opportunities for further expansion of its portfolio in the medium and long-term.”

Mr Al-Arbeed added: “we look forward to updating the market further when we announce our preliminary financial results on 31 January 2012 together with a detailed operational update.”

Dana Gas press release