Premier to Drill Appraisal Well of Egyptian Discovery

Premier says following suspension of the successful Al Amir-1 well, the joint venture partners are planning to drill an appraisal well in the third quarter of 2005.

The flow test from the Al Amir-1 well achieved a stable flow of 750 barrels per day of 17 degree API oil from the South Gharib Formation. Data obtained after the flow test indicates the formation is more highly pressured than expected which has positive implications for oil recovery.

Additionally several prospects have been mapped elsewhere on the block and are candidates for drilling.

The Al Amir-1 well was drilled on the onshore North West Gemsa Concession in the Gulf of Suez oil province approximately 300 kilometers southeast of Cairo.

Signing of Jhangara Licence

Premier has also signed the Jhangara Petroleum Concession Agreement and Exploration Licence with the Government of Pakistan.

Premier Oil holds a 50% working interest and is the operator of the block which lies close to the large producing Bhit and Zamzama gas fields in which Premier also has interests.

Premier's Chief Executive, Simon Lockett, said:

"We are pleased to be carrying out an early appraisal of our recent discovery in Egypt. In Pakistan, the signing today of the Jhangara Licence enables us to confirm our plans for an exploration well, Maliri-1, in the third quarter of this year."