Drilling Report

RNS Number:2037U
Premier Oil PLC
14 January 2004


                                 PREMIER OIL PLC
                                  ("Premier")

       Zamzama Joint Venture Drills Successful Appraisal Well in Pakistan

Premier announces that a successful appraisal well has been drilled into a
hitherto undrilled footwall fault compartment on the eastern side of the Zamzama
gas field in Pakistan. BHP Billiton is the operator of the field with a 38.50%
share. Other working interest owners are Government Holdings (Private) Limited
with 25%, Premier and KUFPEC with effective working interests of 9.375% each
through PKP Exploration Ltd, and ENI Pakistan Ltd with 17.75%.

Analysis of the well logs shows 36 metres of net gas bearing sandstone within a
61 metre gross column in the Pab Formation. The gas has been sampled and
pressure data indicates that the accumulation shares a gas-water contact with
the main field. On test the well flowed at 40 million cubic feet per day on a 
48/64ths choke from an 8.5 metre perforated interval and has been completed as a
future producer.

New contractual arrangements are being progressed in order to sell this
additional gas into the Pakistan gas market.

Charles Jamieson, Chief Executive of Premier, said:

"With the field already in production these reserves can be readily
commercialised."

                                                                 14 January 2004


ENQUIRIES:

Premier Oil plc                                      Tel: [phone]
Charles Jamieson
John van der Welle

College Hill                                         Tel: [phone]
James Henderson

Background For Editors:

Premier Oil plc is a leading independent oil and gas company with producing
interests in the UK, Indonesia, and Pakistan. Exploration and appraisal is
ongoing in the UK, Indonesia, West Africa (Mauritania, Guinea Bissau and Gabon)
and South Asia (Pakistan and India).

The current partners and interests in the Zamzama field are:


                                                                 Zamzama Field
BHP Petroleum (Pakistan) Pty Ltd (Operator)                          38.50%
Government Holdings (Private) Ltd                                    25.00%
PKP Exploration Ltd*                                                 18.75%
ENI Pakistan (M) Ltd                                                 17.75%

* PKP Exploration Ltd is 100% owned by Premier-KUFPEC Pakistan B.V. Premier and
KUFPEC each hold 50% of Premier-KUFPEC Pakistan B.V. Premier's effective
interest in Zamzama is 9.375%.


                      This information is provided by RNS
            The company news service from the London Stock Exchange
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