Exploration drilling update - Badhra B North-1

PREMIER OIL plc

("Premier" or "the Company")

Exploration drilling update - Badhra B North-1

19 September 2012

As announced by Eni Pakistan Ltd, Premier is pleased to note that a significant gas discovery has been made in the Kirthar Foldbelt onshore Pakistan through the Badhra B North-1 well (Badhra-7), located on Badhra Lease Area B (Premier 6 per cent working interest).

The Badhra B North-1 well was drilled to a total depth of 2,450 meters. The well encountered over 54 metres of net gas pay in two thick Cretaceous sandstones of the Mughal Kot Formation. During the production test, the well flowed high quality gas from the two reservoirs at 25 mmscfd and 35 mmscfd. The size of the discovery is currently estimated at between 300 and 400 billion cubic feet of gas in place and its delineation will require further appraisal wells.

The discovery is located approximately 20 kilometres east of the Bhit gas processing facility, operated by Eni, which handles the gas production from the Bhit and Badhra fields. Eni has started discussion with the Pakistani regulator and the joint venture partners to expedite production from the discovery through a long-term production test that will allow for the commercialisation of the gas. Production will be routed to the nearby gas processing facilities of the Bhit field.

Enquiries

Premier Oil plc 0207 730 1111

Simon Lockett

Andrew Lodge

Pelham Bell Pottinger 0207 8613232

Gavin Davis

Henry Lerwill