Premier Oil announces half-yearly results for the six months to 30 June 2010

Thursday, Aug 26, 2010

Highlights

• Production of 46,600 boepd, up 17 per cent on first half 2009 (39,700 boepd)
• Main development projects progressing on schedule to meet target of 75,000 boepd in 2012:
  • Chim Sáo wellhead platform fully installed, development drilling under way
  • Gajah Baru wellhead jacket installed; development drilling scheduled to commence shortly
  • Huntington commercial agreements progressing; field development plan submitted to UK Government (DECC)
• Material exploration success on Catcher and Catcher East in the UK; Blåbær discovery in Norway
• Operating cash flow of US$222.1 million (2009: US$113.4 million), an increase of 96 per cent
• Profit before tax of US$111.6 million (2009: US$19.0 million), compared to full year 2009 profit before tax of US$79.9 million
• Cash resources of US$449.1 million (2009: US$193.5 million) and available undrawn bank facilities of US$404 million (2009: US$500 million)

Outlook

• Full year production for 2010 expected to be around 44,000 boepd, as previously indicated
• Growing portfolio of potential developments representing next phase of growth (Bream, Catcher, Dua, Frøy, Naga, Pelikan, Solan)
• Material wells planned for the second half of the year including follow-up on Catcher discoveries of up to four wells
• Around 20 wells planned over the next 12 months targeting 300 mmboe

Simon Lockett, Chief Executive, commented
"During the first half of this year, Premier has continued to make good progress towards our 2012 production target of 75,000 boepd. We were delighted to be part of the Catcher discoveries, which have been added to our growing portfolio of future developments. These developments have the potential to take production levels to 100,000 boepd in the medium-term. We also look forward to a significant exploration programme for the rest of the year containing material wells in the UK, Norway and Indonesia."

26 August 2010

ENQUIRIES
Premier Oil plc           Tel: 020 7730 1111
Simon Lockett
Tony Durrant

Pelham Bell Pottinger           Tel: 020 7861 3159
Gavin Davis
Evgeniy Chuikov

There will be a presentation to analysts at the company’s offices at 10:30am today which will be webcast live on the company’s website at www.premier-oil.com.

Following changes in the UK company disclosure regulations in 2008, it is not a requirement for half yearly financial statements to be sent to shareholders. Accordingly, Premier will not be printing and distributing a 2010 Half Yearly Report. A copy of this announcement is available for download from our website at www.premier-oil.com and hard copies can be requested by contacting the company (email: premier@premier-oil.com or telephone: +44 (0)20 7730 1111).

Source: Premier Oil