Premier Oil Adopts of US Dollar Financial Statements

Premier announces that it is to adopt the US dollar as the reporting currency of the group going forward.

The majority of Premier's revenue and expenditure is transacted in US dollars, despite being a UK company headquartered in London. By adopting the US dollar for reporting purposes, the Board believes that the accounts will give a clearer picture of the performance of the Company's business, minimizing the impact of US dollar/sterling exchange rate fluctuations.

This change will take effect in respect for the results for the year ended December 31, 2004, to be announced in March 2005.