Premier Provides Mauritania Drilling Update

Following suspension of the well on January 17th, the West Navigator drillship returned to the well on January 28th and since then has installed completion equipment and commenced production testing operations. At midnight on February 14, 2005, an extended flow period was underway.

The well has flowed at a maximum rate of approximately 12,400 barrels of oil per day (bopd) plus 11 million standard cubic feet of gas per day constrained by a 104/64 inch choke. Currently the well is flowing at a stable rate of approximately 9,150 bopd in the main flow period constrained by a 72/64 inch choke.

The Tiof-6 well is the 4th appraisal well following the two discovery wells completed in late 2003.

The Chinguetti field, 25km to the south of the Tiof field, was given development approval in May 2004 and is on schedule for first production in early 2006 at approximately 75,000 bopd, 6,000 bopd to Premier. Development drilling is currently underway. The Tevet-1 discovery well drilled in October 2004 is located within tie-back distance to the Chinguetti field.

The West Navigator and Stena Tay drilling rigs will remain on location offshore Mauritania throughout the greater part of 2005, and will be drilling exploration and appraisal wells in addition to Chinguetti development wells.

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