2009-09-21-2009-07-22-2009-07-22

Bought subsidiary holding 25% WI in Block 12W in Nam Con Son Basin, offshore Vietnam.

Premier Oil Plc, London, (London: PMO) has acquired holding company Delek Energy (Vietnam) LLC from parent Delek Energy Systems Ltd., Tel Aviv, Israel, (Tel Aviv: DEOL) for US$72 million. Delek Energy (Vietnam) holds 25% interest in Block 12W in the Nam Con Son Basin, offshore Vietnam. Premier is the operator of the block, and is developing Chim Sáo Field, containing approximately 50 million barrels of oil equivalent, which is forecast to come onstream at a rate of 25,000 barrels equivalent per day in late 2010 or early 2011. The block also contains the Dua oil and gas discovery. Premier funded the deal with existing cash and undrawn facilities. The agreement also provides for future payments of up to a total of US$10 million contingent on the development of fields in Block 12W other than Chim Sáo. PetroVietnam Exploration and Production has confirmed that it will exercise its back-in right to acquire a 15% interest in the contract. Following the back-in, the interests in Block 12W will be Premier 53.125%, Santos 31.875% and PetroVietnam 15%. Premier chief executive Simon Lockett says "I am pleased that Premier has managed to secure additional equity in Block 12W at an attractive price, and look forward to welcoming PVEP to the joint venture on completion of their back-in."