RNS Number:6753P
Premier Oil PLC
11 September 2003





                          Premier Oil Plc  ("Premier")

                              Restructuring Update

Following the previous announcements in relation to the restructuring of its
group, Premier announces that, at a Court hearing held earlier today, the
Reduction of Capital of Premier was approved.  Completion of the Restructuring,
which includes a consolidation of Premier's share capital, is expected to occur
prior to the commencement of trading of the new consolidated shares tomorrow
morning, 12 September.

Charles Jamieson, CEO of Premier Oil, said:

"We are extremely pleased to report that we now expect to complete this landmark
deal tomorrow.  Premier will shortly be fully independent for the first time in
eight years, free to pursue its stated strategy of adding value in its core
areas in West Africa, South and South East Asia and the UK."

Premier also announces that its interim results will be released to the market
on 18 September.



Details of Reduction of Capital and Share Consolidation

The Reduction of Capital is the final condition to the proposed restructuring of
the Premier Group (the "Restructuring"), which will include the cancellation of
all Premier's ordinary and convertible shares held by Amerada Hess Limited and
Petronas International Corporation Limited (the "Reduction of Capital"). The
Restructuring also involves the transfer of the whole of Premier's interest in
the Yetagun project and part of its interest in Natuna.

Immediately following completion of the Restructuring Premier's share capital
will be consolidated.  Shareholders will receive one consolidated ordinary share
of 50 pence each in Premier (the "Consolidated Ordinary Shares") for every 10
ordinary shares held prior to the Reduction of Capital.

Following the consolidation, approximately 80.06 million Consolidated Ordinary
Shares will be in issue. It is expected that all of the Consolidated Ordinary
Shares will commence trading on the London Stock Exchange at 8.00 a.m. on 12
September 2003.



CREST accounts are expected to be credited with the Consolidated Ordinary Shares
where held in uncertificated form on 12 September 2003, and definitive share
certificates for the Consolidated Ordinary Shares held in certificated form will
be despatched approximately one week later. Any existing share certificates
relating to Premier ordinary shares of 5 pence should be destroyed upon receipt
of the replacement certificate.

Fractions of Consolidated Ordinary Shares arising pursuant to the consolidation
will be aggregated together and sold on behalf of the relevant shareholders and
the net proceeds of sale (after deduction of commissions and expenses)
distributed among the relevant shareholders in due course.

Further details relating to the Restructuring are set out in the circular sent
to Premier shareholders dated 11 October 2002.

11 September 2003




ENQUIRIES:
Premier Oil plc                                      Tel: 020 7730 1111
Mark Akers

College Hill                                         Tel: 020 7457 2020
James Henderson
Deutsche Bank                                        Tel: 020 7545 8000

Roger Aylard
Nigel Meek




                      This information is provided by RNS
            The company news service from the London Stock Exchange
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