Investor Presentation

February 2017

Forward-looking statements

This presentation may contain forward-looking statements and information that both represents management's current expectations or beliefs concerning future

events and are subject to known and unknown risks and uncertainties.

A number of factors could cause actual results, performance or events to differ materially from those expressed or implied by these forward-looking statements.

February 2017 | P1

Cost reductions delivered

High operating efficiency

Step change in production

Continued portfolio upgrading

Refinancing in progress

2016 highlights

1

2

3

4

5

2016 2017E

91% >90%

2015 2016 2016 Q4

58 kboepd71.kboepd

>80 kboepd

E.ON acquisition case 2016 2H

15 kboepd

17 kboepd

2014 opex 2016 opex

$18.5/boe

$15.7/boe

Drawn Debt Total Facilities (incl LCs)

$3.4 bn

$4 bn

Undrawn

February 2017 | P2

Indonesia• >90% operating efficiency

• Strong demand (44% of GSA 1, record GSA 2 delivery)

• $10/boe opex

• Increase demand post 2020

– Quick payback, high return projects– Bison, Iguana, Gajah Puteri

• Longer term growth opportunities

– Tuna, 3rd party business

Asia – providing cash flow for the business

Vietnam

• >90% operating efficiency

• <$9/boe opex

• Further cost reductions

– Renegotiation of vessel and helicopter contracts

– Revised terms for FPSO agreed

• High return, low cost projects include infill drilling in 2017

Low cost,high return

opportunities tomaintain / grow

production

February 2017 | P3

UK North Sea – growth story

Wytch Farm (30.1%)• Long life field• Infill opportunities

Solan (100% op)• Production currently restricted at

10-13 kbopd• Cost reductions continue to be

secured

UK overview• Improved uptime• UK drives production growth:

• Strong operating base• Tax advantaged position

Babbage (47%)• High uptime• Moving to unmanned• Cobra potential tie-back

Elgin-Franklin (5.2%)• Long life field• Rates of >130 kboepd (gross) • On-going infill drilling and well

intervention programme

Huntington (100% op)• Strong reservoir performance• 2016 production significantly

above budget

Catcher (50% op)• On track for first oil 2017• 29% cost reduction secured

Tolmount (50% op)• Low cost, high return project• Significant area upside

• Tolmount East +250 bcf• Tolmount Far East +150 bcf

February 2017 | P4

2015A 2016A 2017E 2018E

UK production

• Templates, flowline bundles, midwater arches and gas export pipeline installed

• Buoy and moorings system installed

• Hook up of risers & umbilicals completed

• Subsea programmebelow budget

Subsea

• 9 wells drilled with excellent operational performance

• Pre-drill predictions for reservoirquality and flow rates ator above prognosis

• Drilling programmebelow budget

Catcher – ahead of plan

BurgmanBP3 producer well

Tayreservoir

Drilling

February 2017| P5

February 2017 | P6

Module lifts onto Catcher FPSO completed

• Outfitting of FPSO progressing well

• 13/13 modules lifted onto FPSO

• ~2,000 people working on the vessel

• On track for summer 2017 FPSO sailaway

Catcher schedule

20172016 2H

• Plateau rates of 50 kboepd (gross)

• $1.6bn total project cost

• Potential further savings from contingency release and FX

• Forward cost exposure reduced significantly

BP3 & BP 5completed

Drilling at Varadero(4 wells)

Installation of Buoy

and Mooring System

Module Lifts

Installation of risers

Hull mated

Onshore pre-command comm

Drilling at Burgman(2 wells)

FPSO transit to Catcher

field

FPSO buoy and

hook-up

First oil

February 2017 | P7

Drilling at Catcher(4 wells)

* Assumes $1.25/£ to end 2017, then $1.3/£ and 20 wells drilled

Topsides integration

Capex - 29% reduction in costs secured *

$m

m

0

50

100

150

200

250

300

350

2014 2015 2016 2017

Sanctioned budgetActual/current forecast

Tolmount – next phase of growth

Indicative metrics (gross)• 450 Bcf• Capex <$600m• Opex: c.$7/boe• Peak production : 200 mcfd• First gas 2020

High return project in a

low gas price environment

Timetable to sanction• Concept select Q1

– Standalone, normally unmanned or subseatie-back to nearby facilities

• Project optimisation

– Capex reducing

– Potential 3rd party funding

• FID targeted for 2017/early 2018

• Partial sales process underway

February 2017 | P8

Southern Gas Basin: portfolio of opportunities

Babbage (47% op)• Infill opportunities

Ravenspurn Deep (5% carried interest)• BP/Perenco long-reach well planned

for late 2016

Newton (50% op)

Cobra (50% op)• 250 Bcf gas discovery• Potential tie back to Babbage

30km radii

Portfolio of opportunities which are economic at <30p/therm

February 2017 | P9

Minerva

Tolmount (50% op)• Discovered Oct 2011• 2 appraisal wells in 2013• 450 bcf of resource• Largest UK gas discovery since Breagh in 1997• Significant upside (E.Tolmount, Malin)

February 2017 | P10

• Licence extended to 2020

• Good progress on FEED in 2016

– Facilities capex and opex cost estimate reductions from FEED contractors’ collaboration

– Logistics and drilling cost estimate reductions following extensive market engagement

– $45/bbl current estimated breakeven price

• Forward focus on commercial and fiscal work streams & securing a financing solution for the development

Estimatedcapex to

first oil now$1.5bn

Sea Lion Phase 1 – reducing breakeven price

• Sureste Basin is a prolific hydrocarbon province(62 bn bbls of proven oil)

• Exercised option to increase to 25% in Block 7

− Shallow water (<150m)

− Same salt flanks and sub-salt plays as the US Gulf of Mexico

− Large Zama well to spud early Q2

Mexico – potential for material value creation

2017 - 20182016 2H

Delivery of reprocessed 3D seismic across 2

blocks

Confirm final drilling

candidates

Tender for a moored, semi-

sub rig forBlock 7

Firstexploration

well onBlock 7

Firstexploration

well onBlock 2

February 2017 | P11

Flat Spot

ZamaProspect

Net debt & refinancing update

February 2017 | P12

Debt type Description Facility size Maturity

Bank debt RCF & LC US$2.5bn 2019

Bank debt Term Loan US$300m Dec. 2017

US Bonds Private Placement US$380m No maturity before 2018

German Bonds Schuldschein US$130m 2018 & 2020

UK Bonds Convertible US$245m 2018

UK Bonds Retail bond GBP150m 2020

Privatelenders

Publicallytraded debt

• Long form term sheet agreed and circulate to lenders for formal credit committee approval

− Preservation of the full amount of existing facilities including undrawn amounts

− Alignment of all maturities to 2021 or later

− Amendment of the group’s financial covenants

− Provision of a comprehensive security package to lenders

− Enhanced economics to lenders

− Certain governance controls

• Aim to have creditors locked up to the final terms during February

• Negotiations with convertible bondholders ongoing

Net debt of$2.8bn, marginally

down from Q3

Cash and undrawn facilities ofc. $600m

2016 2018

Infills Tolmount Sea Lion

$2.25bn$1.6bn

Sanctioned budget Forecast

Maintain competitive cost base

Continuing production growth

Catcher delivery

Select highest return projectsfor sanction

Deliver debt reduction

Outlook

1

2

3

4

5

20%

>50%

30%

2016 Solan Catcher

$15.7/boe

5.2x

3x

$12/boe

$20/boe

February 2017 | P13

2016 2017 2018

IRR

Net debt/EBITDAX

Premier Oil Plc23 Lower Belgrave StreetLondonSW1W 0NR

Tel: +44 (0)20 7730 1111Fax: +44 (0)20 7730 4696Email: premier@premier-oil.com

www.premier-oil.com

February 2017