Exploration drilling update

PREMIER OIL plc

("Premier" or "the Company")

Exploration drilling update

8 March 2012

UK

The Bluebell exploration well (15/24c-10, Premier equity 60%) on UK Block 15/24 in the Central North Sea has reached a total depth of 7,507 feet MD and will be plugged and abandoned. The Palaeocene target was encountered on prognosis, the logs showed excellent sand quality but were water wet.

The next exploration wells to be drilled in the UK Central North Sea are the Stingray and Carnaby wells. The Stingray well in UK Block 15/13b is testing a Mesozoic play on the northern margin of the Central North Sea, while the Carnaby well will target Eocene reservoirs on the Catcher acreage (UK Block 28/9). Both wells are planned to spud in early April with results expected in May.

Pakistan

The K-30 exploration well (Premier equity 15.79%), which spudded on 15 January 2012 on the Kadanwari block, has been successful. It tested gas with a flow rate of 52 MMscfd through a 60/64 inch choke. The operator plans to tie the well into the production facility by the end of the second quarter 2012, delivering around 30 MMscfd.

Simon Lockett, Chief Executive Officer, commented

"We recognised the geological risks of the Bluebell prospect and farmed down prior to drilling to manage this exposure.

The K-30 result is very encouraging and continues our success in supplementing production in Pakistan through near-field exploration."

Enquiries

Premier Oil plc 020 7730 1111

Simon Lockett

Andrew Lodge

Pelham Bell Pottinger PR 020 7861 3232

Gavin Davis

Henry Lerwill