Premier Completes UK Block 23/22b Farmout

Premier Oil completed farmout agreements with Oilexco and BG relating to its interest in Block 23/22b which contains the Palaeocene Sparrow prospect (25-40 mmbbls, on trend with the recent Columbus discovery) along with a deeper Jurassic prospect. Oilexco is drilling a well to test a Jurassic prospect in the adjacent block 23/21, which will be sidetracked to test the Sparrow prospect. Premier will be carried for the costs of the well and will retain a 25% interest. The well is expected to spud imminently.