Premier Quashes Takeover Talks

Further to the announcement dated October 23, 2006 regarding a possible offer for the Company, Premier Oil plc announces that it has terminated all discussions.

The Board is extremely confident in the future prospects for the Group. In particular, the Company has embarked on an active period of high impact exploration drilling which, together with our recent exploration successes in both Indonesia and Vietnam, and good progress in our portfolio of new development projects, offer shareholders substantial upside.

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