2009-05-21-2009-05-12

To buy 15% interest in offshore Block 07/03, Vietnam.

Pan Pacific Petroleum (Vietnam) Pty Ltd., a subsidiary of Pan Pacific Petroleum, Sydney, Australia, (Australia: PPP) has agreed to acquire 15% of a block offshore Vietnam from Premier Oil Vietnam South BV, a subsidiary of Premier Oil Plc, London, (London: PMO) for an undisclosed price. The equity is in Block 07/03 and the agreement includes a funding arrangement for part of Premier's 45% operated interest of the costs of the planned drilling program. Upon completion of the funding obligation, Premier will retain a 30% operated interest in the Block 07/03 production sharing contract. The remainder of the 55% interest in Block 07/03 will be held by Vietnam American Exploration Co. LLC (40%) and PearlOil (Ophiolite) Ltd. (15%). Premier's first well on Block 07/03 spudded on May 6 and is being drilled on the Ca Rong Do prospect using the semi-submersible drilling unit Hakuryu-5.