Premier Oil Announces Lembu Peteng Discovery in Indonesia

Thursday, March 23, 2006

Premier Oil has announced a discovery on Natuna Sea Block A in Indonesia with its operated Lembu-Peteng 1 well.

The well targeted sands in the Arang, Pasir, Intra Barat, and Upper Gabus. Log data indicates the presence of 6 gas zones, and 1 oil zone.

A test has been completed on two of the gas zones, which has yielded 8.5 mmscf/d of gas plus 580 bpd of high quality condensate. A further test of the oil zone will follow shortly.

The Lembu-Peteng discovery lies approximately 14 km to the East of the producing KH field and there are follow-up prospects on the trend.

Premier is the operator of West Natuna Block A with a 28.67% interest, and the other partners in the block are Kufpec (33.33%), Amerada Hess (23%) and Petronas (15%).

A further update will be provided on completion of testing operations.



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