Exploration update

RNS Number:3729L
Premier Oil PLC
21 May 2003



                                PREMIER OIL PLC
                                  ("Premier")

                               Exploration Update

Pakistan

Premier announces that its exploration well Zirkani-1 in the Dumbar licence
located in the Kirthar fold belt of Pakistan has been suspended, having flowed
gas from the Ranikot and Dunghan formations. The licence is operated by PKP
Exploration Limited (PKP), a company held jointly by Premier and KUFPEC.



Three drill stem tests were undertaken on the well. The main target Pab
sandstone was encountered at prognosed depth; however, the formation was tight
and no gas flow was obtained. A second test of the overlying Ranikot formation
produced gas to surface as did a third test over the Dunghan formation, which
flowed at a maximum rate of 6 million cubic feet of gas per day.



Several undrilled structures lie close by in PKP's acreage.  One, the Chung
prospect, lies mid-way between Zirkani-1 and the recently developed Bhit field.
Recent negotiations have enabled PKP to acquire more of the acreage that
contains this prospect, now allowing it to be a candidate for drilling. In the
event of future drilling success in the area, the Zirkani-1 discovery will be
considered for integration into a new development. Studies of the reserve
potential of Zirkani have commenced.



Following the recent drilling on the Dumbar licence, Premier believes that the
exploration potential on the block remains attractive. A detailed technical
review of the results of the wells will be undertaken before determining the way
forward.



Guinea Bissau



Work is continuing on the planned drilling of a second well on the Sinapa
prospect in the second half of 2003 subject to availability of a suitable rig.



Gabon



Premier and operator Sasol are expecting to sign the Production Sharing
Agreement for the Phenix block located offshore of Gabon by early June. Plans
are underway for the drilling of the first well in the 4th quarter 2003.



India



Premier has acquired the first 40km of seismic data from a 120km survey in the
Jaipur licence in north-east India. Following analysis of the data, the partners
plan to drill a well in the 1st quarter of 2004.



Charles Jamieson, CEO of Premier Oil, said:



"The two recent wells drilled in our Dumbar block have confirmed the presence of
gas and studies of the reserve potential of Zirkani have commenced. We believe
that the block has further exploration potential in identified prospects and we
are now formulating our forward plan using the information gained from the
wells.



Elsewhere, we continue to build an exciting exploration programme primarily
focusing on West Africa and Asia while also actively pursuing new opportunities
in our core areas."



                                                                     21 May 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 is ongoing in the UK,
Indonesia, West Africa (Guinea Bissau and Gabon) and South Asia (Pakistan and
India).

On 16 September 2002 Premier announced a major restructuring involving the
transfer of interests in Myanmar and Indonesia to its major shareholders Amerada
Hess and Petronas in return for the cancellation of their combined 50 per cent.
shareholding in Premier, an injection of cash and repayment of Myanmar project
debt. The restructuring leaves Premier as a fully independent oil company in a
good position to follow its strategy of value creation and early realisation
through oil and gas exploration and commercial deal-making.

The partners and interests in Dumbar licence in Pakistan are:


                                             Before back-in                     After back-in
PKP Exploration Ltd**                             95%                                75%

Government Holdings (Private) Ltd.*                5%                                25%



* Government Holdings has the right to back in to an additional 20% equity. PKP
Exploration Ltd's interest would fall to 75% after exercise of this right.



** PKP Exploration Ltd is 100% owned by Premier-KUFPEC Pakistan B.V. Premier and
KUFPEC each hold 50% of Premier-KUFPEC Pakistan B.V. giving Premier an effective
37.5% interest in the Dumbar licence after back-in.




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