Drilling Update

RNS Number:9098S
Premier Oil PLC
05 December 2003





                                PREMIER OIL PLC

                                  ("Premier")



                           Mauritania Drilling Update



Premier provides the following update on the drilling and testing operations in
offshore Mauritania:



Poune Exploration Well



Following the successful oil and gas discovery in the C-4-6 Tiof exploration
well (Tiof-1), the Poune exploration well (Chinguetti 5-1 Poune) commenced
drilling on 16 November 2003. The well was targeting a Cretaceous reservoir, a
different target to the younger reservoirs found at Chinguetti and at Tiof. The
well was drilled to a total depth of 3,285 metres and wireline logs were run.
The logs show that the well has encountered no significant hydrocarbons in the
primary Cretaceous target, although minor hydrocarbon shows were found in
shallower Tertiary sandstones. The well will now be plugged and abandoned.



Tiof West



As a follow up to the Tiof-1 discovery, the Area B joint venture has now taken
the decision to extend the original exploration programme by drilling an
additional well, Tiof West, directly after the Poune well. Tiof West is a
step-out exploration well located approximately 8 km from Tiof-1. It will
further evaluate the extent and nature of the hydrocarbon accumulation in the
Tiof sand channel system.





                                                                 5 December 2003




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).



As previously announced on 28 May 2003, Premier has entered into an agreement
with Fusion Oil & Gas Ltd regarding its interests in Mauritania. Premier will
acquire a 6% share of PSC B (which includes the Chinguetti field) and a 3% share
of PSC A from Fusion Oil & Gas on completion of the transaction. Completion will
take place separately for each PSC and will occur on Mauritanian government
approval of a field development plan for a field in each PSC.



The current partners and interests in Mauritania PSC B are:


Woodside Mauritania Pty Ltd (Operator)                                  35.0%
AGIP Mauritania BV                                                      35.0%
Hardman Resources Ltd                                                   21.6%
Fusion Mauritania B Limited*                                             6.0%
Roc Oil (Mauritania) Company                                             2.4%





The Government of Mauritania has the right to back in to 12% equity in
developments producing up to 75,000 barrels of oil per day.



*Premier will take up its 6% share of PSC B from Fusion Oil & Gas on completion
of the transaction announced on 28 May 2003.


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