UK: Premier Oil plc Nears 75,000 boepd Target

Premier’s 2010 Preliminary Results will be announced on Thursday 24th March 2011. A Trading and Operations Update is planned for Thursday 13th January 2011.

HIGHLIGHTS

* 2010 production guidance maintained at around 44 kboepd (2009: 44kboepd); we reiterate our targets of 75 kboepd in 2012 rising thereafter to 100 kboepd from existing reserves and resources

* Continuing good progress on our key Asian developments. Facilities are in place on both the Chim Sáo and Gajah Baru projects and development drilling is under way. Planned first oil and gas dates of 1st July and 1st October 2011

* Good progress on completing commercial agreements for additional developments; contractor documentation for the Huntington project in the UK was signed on 9 November and DECC approval for the project has now been granted. In North Sumatra a 20 year PSC extension was signed for Block A Aceh, allowing the gas project to move forward with first gas targeted for 2013

* Gas and condensate discovery at West Rochelle; hydrocarbons encountered in both vertical and sidetrack wells. Development plans will now move forward in conjunction with the adjoining Rochelle partners. Of the 11 exploration wells drilled by Premier year to date, six have been successful

* A programme of 23 wells is planned over the next 13 months with unrisked potential of around 400 mmboe, net to Premier. This includes a farm-in well to a significant deepwater play in the Northern Red Sea

* Bank refinancing has increased facilities available to the Group by US$470 million, at a significantly reduced margin. On completion, total facilities will stand at around US$1.8 billion

Simon Lockett, Chief Executive, commented:

“Across the Group, we continue to add value through our development and exploration activities. As we move towards our short-term target of 75,000 boepd, we also enter an extremely active exploration and appraisal programme through 2011.”

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Source: Premier Oil, November 16, 2010: