Drilling Update

PREMIER OIL PLC

("Premier")

Bugle North Appraisal well update

7 May 2010

Premier announces that Nexen, acting as operator, will plug and abandon the 15/23d-15 Bugle North Appraisal well in the North Sea.

The Bugle North well was targeting the northern extension of the Bugle oil discovery and reached a total depth of 15,145ft MD. It encountered minor quantities of hydrocarbon in the target horizon. The well was drilled close to the boundary between Blocks 15/23c and 15/23d and the cost of the well is equally split between the block partnerships.

Premier has a 50% interest in Block 15/23d containing the Bugle discovery.

Enquiries

Premier Oil plc Tel: 020 7730 1111

Tony Durrant

Andrew Lodge

Pelham PR Tel: 020 7337 1500

James Henderson

Gavin Davis

Evgeniy Chuikov

Notes to editors:

Premier is a leading FTSE 250 independent exploration and production company with oil and gas interests in the North Sea, South East Asia and in the Middle East-Pakistan regions. Our strategy is to add significant value for shareholders through exploration and appraisal success, astute commercial deals and optimal asset management.