Premier notes the press release by Lundin Petroleum AB, the operator of the exploration well 16/4-6S on the Luno II prospect in PL 359 (Premier equity 30 per cent). The exploration well has resulted in a potentially significant oil discovery and will now be tested to obtain flow rate information.

The well is on the south western flank of the Utsira High approximately 15 km south of the Edvard Grieg field. It was drilled in water depth of 101 metres.

The well encountered a significant gross reservoir section of close to 200 metres with a gross oil column in excess of 40 metres. The oil water contact was encountered at approximately 1,950 metres below mean sea level. Information gained so far indicates that the petroleum system in Luno II is different to that of the nearby Edvard Grieg and Johan Sverdrup fields. A comprehensive coring and logging program has been performed and the discovery will now be drill stem tested.

Premier will provide further information once the results of the flow test are known.

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