FPSO Charter Party signature

PREMIER OIL plc

("Premier" or "the Company")

Huntington update - FPSO Charter Party signature

Premier is pleased to note that E.On Ruhrgas UK E&P, operator of the Huntington project, has today announced that a leasing contract for the FPSO Sevan Voyageur has been signed with Sevan Production UK Limited (a subsidiary of Sevan Marine ASA).

The FPSO Sevan Voyageur is currently in the Nymo yard in Arendal, Norway, where gas compression and water injection upgrades will be carried out. The FPSO will be installed on the Huntington field in the fourth quarter of 2011. Production is expected to commence in the first quarter of 2012.

The Huntington Field was discovered in 2007. The initial development will exploit the Forties Palaeocene reservoir with up to 4 production wells and 2 water injectors. The production facilities have a capacity of 30,000 barrels of oil per day. Natural gas will be exported via pipeline through the CATS system. Total development cost is estimated at £320 million. The contract will be for a firm fixed term of five years with options for the Huntington owners to extend.

The Huntington Field is located in Block 22/14b in the UK part of the Central North Sea. Premier has a 40% interest in the block. E.ON Ruhrgas UK E&P is the operator and has a 25 % interest. The other partners are Altinex Oil (UK) Limited (20 %), and Carrizo Oil & Gas, Inc. (15 %).

Enquiries

Premier Oil plc 020 7730 1111

Simon Lockett

Tony Durrant

Pelham PR

Gavin Davis 07910 104 660