Premier gives Africa update

In its interim results for the first half of 2007, Premier Oil Plc. summarized its results thus far this year and published its plans for the coming months.

Offshore staff

EDINBURGH, UK -- In its interim results for the first half of 2007, Premier Oil Plc. summarized its results thus far this year and published its plans for the coming months. The exploration program in the first half of 2007 focused on high impact wells in the UK, Guinea Bissau, and India, Premier says.

In West Africa, the focus of the first half of 2007 was on drilling two operated exploration wells in Guinea Bissau and progressing the sale, initiated in Dec. 2006, of Premier's interests in Mauritania. Negotiations with a preferred bidder now are under way, the company says.

Elsewhere in the region, the company has moved forward with well planning for the Tham-1 well, to be spudded in 4Q 2007 offshore Gabon in the Themis Marin production-sharing contract (PSC), where Premier is the operator for the drilling phase. The company also has progressed evaluation of the encouraging Congo Marine IX PSC, which Premier operates, and have approved an application to extend the Dussafu PSC in Gabon.

Premier says production from Chinguetti offshore Mauritania for the first half of 2007 averaged 16,867 b/d of oil, which was lower than expected. New seismic data was acquired over Chinguetti this year to optimize the locations of new development wells to be drilled in early 2008, the company says.

Evaluation of the potential development of the Tiof oil discovery in PSC B continued with the acquisition of new high resolution seismic data in 1Q 2007. The joint venture is actively investigating commercialization of the substantial gas reserves proven in PSC A (Banda field) and PSC B (Tiof, Tevet, and Chinguetti).

Premier says exploration offshore Mauritania has focused on re-evaluating and prioritizing the prospect portfolio. One or more exploration wells could be drilled in 2008 dependent, largely, upon rig availability.

In Guinea Bissau, Premier drilled two exploration wells, Eirozes-1 and Espinafre-1Az. The Espinafre-1Az well, which was spudded early in February, was plugged and abandoned before reaching the primary objective. Eirozes-1, 23 km (14 mi) from Espinafre-1Az, was spudded at the end of March, drilled to target depth, and encountered thick Albian sands in accordance with expectations. There were no indications of oil were recorded during drilling, and the well was plugged and abandoned.

9/21/2007

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