Block A Aceh PSC extension signed

PREMIER OIL plc

("Premier" or "the Company")

Block A Aceh PSC extension signed

28 October 2010

Premier is pleased to announce the signature of the Block A Aceh (previously known as North Sumatra Block A) Production Sharing Contract (PSC) by the joint venture partners, the Government of Aceh, BPMIGAS (the Upstream Oil and Gas Supervisory Agency) and the Indonesian Minister of Energy and Mineral Resources. The term of the PSC is 20 years, effective as of 1 September 2011.

The signing of the PSC means the development of the Alur Siwah and Alur Rambong gas fields can now move forward and invitations to tender for the EPCI contract will be issued shortly.

First gas is now expected from the project in 2013.

Enquiries

Premier Oil plc 020 7730 1111

Simon Lockett

Tony Durrant

Pelham PR

Gavin Davis 07910 104 660