Huntington Development

PREMIER OIL PLC

("Premier")

Letter of Intent signed for FPSO Sevan Voyageur for Huntington development

4 May 2010

Premier is pleased to note that Sevan Marine ASA (Sevan), on behalf of its wholly owned subsidiaries, and E.ON Ruhrgas UK E&P Limited, as operator on behalf of the Huntington owners, have announced that they have entered into a Letter of Intent whereby they agree to progress negotiations on a charter party for the potential use of the FPSO Sevan Voyageur as the production unit for the Huntington field in Block 22/14 of the UK continental shelf. These negotiations will be on a mutually exclusive basis for the period until 30 June 2010.

There are certain technical and financing conditions that need to be satisfied during this period.

The proposed charter party will be for a firm fixed term of five years with options for the Huntington owners to extend.

Simon Lockett, Chief Executive Officer, commented: "We are pleased with the good progress made by the partnership with Sevan. Along with the continued progress we are seeing from our other development projects, this brings us another step closer to achieving our stated production target of 75,000 boepd from existing discovered reserves."

Enquiries

Premier Oil plc Tel: 020 7730 1111

Simon Lockett

Tony Durrant

Pelham PR Tel: 020 7337 1500

James Henderson

Gavin Davis

Evgeniy Chuikov

Notes to editors:

Premier is a leading FTSE 250 independent exploration and production company with oil and gas interests in the North Sea, South East Asia and in the Middle East-Pakistan regions. Our strategy is to add significant value for shareholders through exploration and appraisal success, astute commercial deals and optimal asset management.