Gajah Baru - first gas

PREMIER OIL PLC

("Premier")

Gajah Baru - first gas

24 October 2011

Premier is pleased to announce the start of gas production from the Gajah Baru field in the Natuna Sea Block A in Indonesia. 

Premier has achieved first gas after receiving ministerial consent to complete commissioning at an expected rate of up to 50 bbtud. In the meantime the previously announced gas swap documentation to deliver gas to domestic buyers is being completed. Premier has been requested by the Government of Indonesia to work towards completing this documentation this year. Thereby a further 40 bbtud of gas can be delivered to Indonesian gas buyers ahead of the planned pipeline on to Batam Island as well as to the committed supplies to Singapore buyers.

Premier, with a 28.67 percent equity stake, operates Natuna Sea Block A in the West Natuna Sea on behalf of its partners KUFPEC, Hess and Petronas.