Premier Applies for New Licenses in Guinea Bissau

Premier is pleased to announce that it has reached agreement with Occidental Petroleum Corporation to farm out 40% of its 100% paying interest in Blocks 2, 4A and 5A (the Sinapa and Esperanca blocks) offshore Guinea Bissau in West Africa. Premier will retain operatorship. A drilling rig has been contracted to begin drilling the Sinapa-2 well in the first quarter of 2004 to test a 250 million barrel oil prospect, one of a number of similar prospects on the blocks.

Premier and Occidental have also jointly been granted two new licenses covering blocks 7B and 7C, also offshore Guinea Bissau, subject to Guinea Bissau government final approval. Premier, as operator, has a 25% paying share while Occidental has a 75% share. The partners plan to commence operations by acquiring a 2D seismic survey in 2004.

Charles Jamieson, Chief Executive of Premier, said 'We are very pleased to have as technically a strong partner as Occidental and at the same time to have taken more acreage in Guinea Bissau. We are looking forward to drilling this highly prospective area early in 2004.'