Tiof-5 Well Offshore Mauritania Reaches Total Depth

Premier Oil reports that the Stena Tay has drilled the Tiof-5 appraisal well to a final total depth of 3010 meters.

Preliminary interpretation of logs acquired while drilling and wireline logging operations, including fluid sampling and downhole pressure measurements, indicate that the well has intersected a gross oil column of 23 meters in several individual sands of variable thickness. At midnight on December 13th wireline logging operations and the evaluation of well data was continuing.

The Tiof-5 well is the 3rd appraisal well in 2004 following the two discovery wells completed in late 2003. The appraisal program is proceeding on prognosis and the joint venture is planning to drill a 4th appraisal well in early 2005 before refining development plans.

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 barrels of oil per day (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 will remain on location offshore Mauritania throughout the greater part of 2005, and will be drilling exploration and appraisal wells in addition to Chinguetti, and possibly Tiof, development wells.