Further to the announcement made on 9 July 2007, when outline terms and conditions were agreed with the note-holders, Dominion Petroleum is pleased to announce that its subsidiary, Dominion Petroleum Acquisitions Limited, has issued secured convertible loan notes, raising US$45 million (before expenses) ( the Series B Convertible Loan Notes ) which will bear interest at the rate of 8.50 percent per annum (payable quarterly in arrears) and will be repayable in full on 2 October 2011.

As part of the agreement with the note purchasers, Dominion Petroleum proposes to raise additional equity funds prior to 31 December 2007 after which, depending on the amount raised, the interest rate will be adjusted downwards to a minimum of 7.00 percent or upwards to a maximum of 10.00 percent. The maturity of the Series B Convertible Loan Notes will also be reduced by 12 months if the amount of equity raised is less than US$5 million. A leading financial institution has been engaged in relation to the raising of such additional equity, the process for which is underway.

The Series B Convertible Loan Notes can be converted at the option of the holders at a price of 60 pence per common share ( Original Conversion Price ). During the first 18 months following issue, the Original Conversion Price shall be subject to reduction if Dominion Petroleum s share price trades in any quarter at an average price below the Original Conversion Price (calculated on a volume weighted average price basis during each fiscal quarter) provided that it shall not be reduced to less than 48p (save in the case of a change of control, whereby a person or persons acting in concert acquire more than 50 percent of the voting rights in the shares of Dominion Petroleum, in which case the actual conversion price may be subject to further downward adjustment at the election of the note-holders).

50 percent of the Series B Convertible Loan Notes shall automatically convert if Dominion Petroleum s shares trades at an average in excess of 250 percent of the Original Conversion Price for 15 consecutive trading days. The remaining 50 percent of the Series B Convertible Loan Notes shall automatically convert if, after 60 days following the initial automatic conversion date, the shares of Dominion Petroleum have traded at an average in excess of 250 percent of the Original Conversion Price for 15 consecutive trading days.

Based on an issue of US$45 million and a minimum conversion price of 48p, the common shares attributed to the Series B Convertible Loan Notes would represent approximately 8 percent. of Dominion Petroleum s outstanding share capital on a fully diluted basis after conversion. Dominion Petroleum is acting as Guarantor of the Convertible Loan Notes.

The proceeds of the Convertible Loan Notes will be used to fund Dominion Petroleum s ongoing exploration activities and for general working capital purposes.

Mike Garland, Chief Executive of Dominion Petroleum, commented:
"We are very pleased to have concluded this latest round of funding, which introduces a new group of investors to Dominion s high quality portfolio of exploration assets in East Africa. Armed with this financial firepower , investors can look forward to our outstanding management team delivering an exciting flow of news."

ENQUIRIES:

Dominion Petroleum plc
Mike Garland, Chief Executive
Tel. +44 (0) 7825 634 249

Rob Shepherd, Finance Director
Tel. +44 (0) 7825 634 250

Pelham Public Relations
Archie Berens
Tel. +44 (0)20 7743 6679 / +44 (0)7802 442 486

Insinger de Beaufort
Nandita Sahgal
Tel: +44 (0)20 77190 7000