Drilling Update

RNS Number:2997T
Premier Oil PLC
16 December 2003



                                PREMIER OIL PLC

                                  ("Premier")



             Premier Announces Another Successful well in Mauritania



Premier is pleased to report that a preliminary evaluation of wireline logs and
pressure data acquired from the Chinguetti-4-7 (Tiof West) step-out exploration
well indicates a gas column of approximately 4 metres overlying a gross oil
column of approximately 122 metres.



The top of the hydrocarbon bearing interval was intersected down-dip from the
top of the hydrocarbon bearing interval in the Chinguetti-4-6 (Tiof) discovery
well. Preliminary analysis of the pressure data indicates that the oil column is
likely to be in direct pressure communication with the oil column intersected in
the Tiof well.



The Tiof West well is located approximately 8 km from the Tiof well which
directly proved a 38.5 metre gross oil column. Further appraisal drilling will
be required to assess the significance of the two wells and to verify
connectivity and the net to gross of the reservoir section.



The well will now be plugged and abandoned, as planned.



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 the Tiof
discovery) 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.





Charles Jamieson, Chief Executive of Premier, said:



"Finding a large oil column in communication with the discovery well 8km away is
an exceptional result. It is a fitting end to this year's drilling programme."



                                                                16 December 2003




ENQUIRIES:

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


College Hill                                         Tel: [phone]
James Henderson
Phil Wilson-Brown


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 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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