Contractors Unlimited

Premier Oil: Results of the 26th UK Oil and Gas Licensing Round

Premier Oil Premier is pleased to announce the provisional award of five new licences in the 26th UK Licensing Round announced yesterday by the Department of Energy and Climate Change ("DECC"). These awards include two operated licences.

The new licences are all located in the Central North Sea and include several blocks close to Premier's existing interests.

Licence Award Summary
Block No.OperatorPremier Working Interest
15/9, 15/10, 15/14 and 15/15Nexen50%
22/26c and 22/21 (part)Maersk30%

Licences Awarded

14/30b (Nexen (op) 50%, Premier 50%)

This block is adjacent to the Upper Jurassic Kildare oil discovery made by Nexen and Premier in 15/26b. The West Rochelle exploration well is currently being drilled on the border of 15/26b and an adjoining block. The work programme on 14/30b consists of 3D seismic reprocessing to assess the potential of a western extension of the Kildare discovery into the awarded block.

15/9, 15/10, 15/14 and 15/15 (Nexen (op) 50%, Premier 50%)
This relatively undrilled area contains potential for prospectivity at Eocene, Paleocene, Jurassic and Zechstein levels. The work programme consists of working up our new proprietary 3D acquired this year that covers the 15/13b licence and extends over the prospectivity identified in the 15/9, 15/10, 15/14 and 15/15 blocks.

Subsequent to the Licence award announcement, Premier has also signed an agreement with Nexen to farm in to adjacent Block 15/13b, which contains the Eagle and Talon prospects which extend into the adjacent 26th Round acreage.

15/23g (Premier (op) 50%, Nexen 50%)
This block is located north-east of Premier's Blackhorse discovery. Premier already has equity in adjacent blocks to the South (15/23b 50%, 15/23e 100%) and West (15/22 40%) and close to Block 15/23d which contains Premier's discovered resources at Bugle. The main prospect on the block is a potential Eastern extension of Blackhorse, and is two-way dip-closed with two-way fault closure. The work programme is seismic inversion of a 50 square kilometre area in order to fully evaluate the prospect as part of a near-field tie-back strategy to be pursued for the Greater Scott area.

21/7b (Premier (op) 70%, Antrim 30%)
This block, in the western reaches of the Central North Sea basin, contains the Typhoon prospect, a stratigraphic trap with similar attributes to the nearby Scolty and Torphins discoveries. The work programme consists of a firm well.

22/26c and 22/21c (part) (Maersk (op) 45%, Centrica 25%, Premier 30%)
This former first round acreage contains the Cringlette and Ronan prospects. The work programme consists of the acquisition of new 3D seismic to assess a sizable Upper Jurassic trap and other associated prospects on these two blocks.

Simon Lockett, Chief Executive Officer, commented:

"The awards underline Premier's commitment to building a growing exploration and production business in the UK following the successful acquisition of Oilexco North Sea Limited in 2009 and recent success in our 2010 exploration programme."

Premier Oil plc is a leading FTSE 250 independent exploration and production company with oil and gas interests in the North Sea, Asia and in the Middle East-Pakistan regions. The company's strategy is to add significant value for shareholders through exploration and appraisal success, astute commercial deals and optimal asset management.

Posted 28/10/2010

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