3 June - Drilling Update - Catcher discovery

Premier is pleased to announce that the Catcher well, spudded on 17 May, has been drilled to the planned depth of 1543m TVDSS and encountered an oil column within good quality Cromarty age sandstones. The net oil pay is estimated to be 27m. An extensive logging programme is under way and the joint venture plans to drill stem test the current wellbore, then sidetrack to the east to test a similar amplitude-supported segment but within the stratigraphically younger Tay formation.

Premier has 35% equity in the licence.

Simon Lockett, Chief Executive Officer, commented:
“We are extremely pleased with the results of the well to date and have upgraded our gross reserves estimate for Catcher to a range of 25 to 50 mmbo. As such Catcher represents an important new discovery in the Central North Sea."

3 June 2010

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, 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.