Premier Oil Reports Increase in 4th Quarter Production

Premier reports that production from the last two months of 2002, including that in respect of assets to be transferred under their restructuring agreement, was in excess of 60,000 boepd, a record for Premier. Production for 2002 was approximately 5 percent above the top end of the company's target range of 45,000 - 50,000 boepd.

On the exploration front, the program over the next few months is a full one, with exploration work being carried out on two gas wells on the Dumbar block in Pakistan and two oil wells on the Natuna A block in Indonesia.

The Benir well in Pakistan was tested for its gas potential but proved to be noncommercial. Drilling on the Zirkani well, also on the Dumbar block, is expected to commence in mid January and should take around three months to drill. The first Indonesian well - Kuda Nil - is currently drilling and the second - Binturong - is expected to commence in February.