Release: Premier Oil: New exploration license award- Indonesia

(Dec 14, 2006) Premier Oil is pleased to announce the award of an onshore exploration licence on Buton Island, Sulawesi, by the Indonesian Government. Premier will hold a 30% non-operated equity interest.

The block covers 3,396 km2 and lies on the southeastern side of Buton island.

Oil seeps are prolific on the island and large volumes of oil have been generated as evidenced by the commercial asphalt mining operations that have been ongoing for many years.

The committed work programme includes 265km of 2D seismic designed to confirm at depth the structures mapped at surface, and one exploration well. 5 leads have been identified on the block so far.

Simon Lockett, Premier's Chief Executive, commented: "The award of this prospective block builds our portfolio of attractive exploration acreage in Asia. Buton is an underexplored block in an onshore frontier area with the potential to contain large prospects for future drilling." (end of release)