Premier Oil Acquires Further 25% In Block 12W, Vietnam

Premier Oil (PMO.LN), an oil and gas explorer, announced Monday that it has signed a sale and purchase, or SPA, agreement and completed the acquisition from Delek Energy Systems Ltd of Delek Energy (Vietnam) LLC, the holding company for its 25% interest in Block 12W in the Nam Con Son Basin, offshore Vietnam.

MAIN FACTS:

-The purchase price for the interest is $72 million in cash, before adjustments, with an effective date of 31st March.

-Premier is the Operator of the Block, and is progressing the development of the Chim Sao field, containing 50 million barrels of oil equivalent and gas, which is forecast to come onstream at a rate of 25,000 barrels of oil per day in late 2010 or early 2011.

-The block also contains the Dua oil and gas discovery.

-This will be funded from the Company's existing cash and undrawn facilities.

-The SPA also provides for future payments of up to a total of $10 million contingent on the development of fields in Block 12W other than Chim Sao.

-Separately PetroVietnam Exploration and Production (PVEP) has confirmed that it will exercise its back-in right to acquire a 15% interest in the PSC.

-Following completion of both Premier's acquisition from Delek and the PVEP back-in, the interests in Block 12W will be; Premier 53.125% (Operator), Santos 31.875%, PVEP 15.000%.

 
-By London Bureau, Dow Jones Newswires; Contact Ian Walker; [phone]; [e-mail]