Premier Oil: Interim results for the six months to 30 June 2000

Premier Oil is an independent exploration and production company, with interests in UK onshore and offshore production and extensive gas production interests in Pakistan, Myanmar and Indonesia.

Improving Financials

Significantly improved operating profit of ?17.8 million (1999: loss ?3.3 million)

Net profit, after interest and taxation charges, of ?2.5 million (1999: loss ?12.5 million)

Revolving bank credit facility successfully refinanced at $250 million

Successful Exploration in Indonesia

Four wells - four discoveries: Naga, Iguana and Gajah Baru (gas), Ande Ande Lumut (oil)

Good Progress on Asian Gas Developments

Yetagun project completed on time within budget; onstream in May 2000

West Natuna project on track to deliver early gas at year end

Bhit field gas sales approved by Pakistan Government

Unlocking Value in the UK

Kyle oil field test exceeding expectations

Agreement signed for the phased development of the Chestnut oil field

Charles Jamieson, Chief Executive, commented:

"Premier has continued to make substantial operational progress towards delivering its major Asian projects on time and on budget, and has had further low cost exploration success in Indonesia. The Group's portfolio is scheduled to double production over the next three years, providing increased cashflow as a sound platform for future growth."

Contact:

Premier Oil plc Tel: +44 20 7730 1111

Charles Jamieson, Chief Executive; John van der Welle, Finance Director; College Hill Tel: +44 20 7457 2020 (*)