Premier Oil : Exploration drilling update

PREMIER OIL PLC

('Premier')

Falkland Islands Exploration drilling update - Successful Isobel Deep Re-drill

11 January 2016

Premier Oil plc is pleased to announce that the Isobel Deep re-drill (well 14/20-2) has successfully confirmed the oil discovery encountered in the original Isobel Deep well. In addition, this re-drill has discovered new hydrocarbons in additional sandstones.

The well which is located on licence PL004A (Premier 36% operated interest), reached TD at 3014 metres encountering oil bearing intervals in a number of sandstone reservoirs between 2564 metres and 2861 metres, the latter being the base of the Isobel Deep sand. No oil-water contacts have been encountered in a gross oil bearing interval of approximately 300 metres. Further evaluation will now be required to calibrate the well with the existing 3D seismic in order to determine future plans and the extent of the discovered resource.

Operations have now been suspended and the well will be plugged and abandoned as planned. The rig will then move to the Chatham well location.

Robin Allan, Exploration Director, commented:

'The results of this well confirm the success of the Isobel Deep 14/20-1 well announced in May last year. We have encountered a substantial oil bearing interval, which confirms the potential of this part of the North Falkland basin as a standalone discovery. This successful re-drill of the Isobel Deep oil sand along with the additional discovery of new oil-bearing sandstones, is extremely encouraging for the prospectivity of the area with a proven petroleum system and a number of prospects established.'

Enquiries

Premier Oil plc Tony Durrant, CEO Robin Allan, Exploration Director	Tel: [phone]
Bell Pottinger Gavin Davis Henry Lerwill	Tel: [phone]