Exploration drilling update - Cyclone

PREMIER OIL plc

("Premier" or "the Company")

Exploration drilling update - Cyclone

6th December 2012

The Cyclone well in UK block 21/7 (Premier equity 70 per cent) has reached a total depth of 6,076 feet and is being plugged and abandoned. The well encountered 105 feet of Palaeocene Cromarty sands but the well logs identified only residual oil. This suggests that the trap, which was identified as the critical risk factor pre-drill, leaked.

In 2012, Premier drilled five exploration wells targeting Tertiary sands in the UK Central North Sea. This resulted in the success at Carnaby, within the greater Catcher Area. Premier's Tertiary prospect drilling in the UK will now concentrate on the greater Catcher Area, with Bonneville planned to spud in March 2013.

Premier's higher impact exploration programme in the North Sea focuses on deeper Mesozoic plays with the Luno II and Lacewing prospects expected to spud in the first quarter of 2013.

Enquiries

Premier Oil plc 0207 730 1111

Simon Lockett

Andrew Lodge

Pelham Bell Pottinger PR 0207 8613232

Gavin Davis

Henry Lerwill