2014 Half-Yearly

Results21 August 2014

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.

August 2014 | P1

Agenda

Introduction

Production

Solan

Catcher

Exploration

Finance

Summary & Outlook

August 2014 | P2

Tony Durrant

Garry Stoker

Robin Allan

Tamara Sebire

Toby Garwood

Aurangzeb Bozdar

Tony Durrant

ProductionGarry Stoker

Group Development & Operations Manager

Production – higher operating efficiency

August 2014 | P4

Indonesia• GSA1 market share 48%;

above contractual shareof 39.4%

• Additional 40 Bbtud via domestic swap agreement

0

5

10

15

20

2013 1H 2014

Vietnam• Chim Sáo achieved

25 mmbbls milestone• Dua on-stream

0

5

10

15

20

2013 1H 2014

Group

• Improved operating

efficiency

• Higher liquids

production

• Growing cash flows

Group

• Improved operating

efficiency

• Higher liquids

production

• Growing cash flows

0

10

20

30

40

50

60

70

2013 1H 2014

Guidance

1H 2014

average:

64.9

kboepd

North Sea• Strong performance from

B-Block and Wytch Farm• Higher production from

Huntington and Rochelle

05

10152025

2013 1H 2014

Pakistan• In-line with expectations• New Kadanwari wells

brought on-stream• Bhit compressor project

underway

0

5

10

15

20

2013 1H 2014

OE

75%

OE

83%

OE64%

Production (kboepd)Production (kboepd)

Production (kboepd)Production (kboepd)

OE70% OE

70%

OE85%

OE90%

OE94%

OE96%

OE96%

August 2014 | P5

Chim Sáo – significant operational improvements

Operating efficiency improved from 70% in 2013 to >85% 1H 2014

Persons on boardincreasedBoilers upgradedDua on-stream

Operations

improvement

project

Additional diesel generators installed

August 2014 | P6

Balmoral –improving operating efficiency & delivery capacity

Production in 2014 1H up 48% on 2013

Operations improvement project

Power generatorsrecommissioned

Reinstatementof wells

>1 million

man-hours

without a

LTI

SolanRobin Allan

Director Business Units

Solan – significant progress made

August 2014 | P8

DECC approval of FDP Drilling – Phase 1 Drilling – Phase 2 Tank lowered to seabed

BiFab to build jacket & topsides Jacket progress Tank sailaway

2012 2013 2014

Awilco WilPhoenix secured Topsides moved outside Jacket roll-up

Drydocks World to build tank Tank progress Jacket sailaway

Drilling –Phase 3

Topsides installation

2015

HUC

Project metrics• >40 mmbbls

• $1bn of capex to date

• Robust economics:

rapid project payback

Today

Jacket installation

Solan – drilling and subsea update

• Drilling

– P1 completed; good flow rates

achieved

– W1 nearing completion

– Phase 3 drilling campaign in 2015

to complete P2 and W2

• Subsea oil storage tank

– Construction completed; sailed

from Dubai in June

– Offshore installation undertaken

by Heerema Thialf

– Piling operations

nearing completion

August 2014 | P9

Final stagesof execution

Solan – platform update

August 2014 | P10

Construction

of jacket and

topsides

completed

Jacket

loaded out and

installation

by Heerema

Thialf to

commence

shortly

Topsides

ready for load

out prior to

installation

Hook up and

commissioning

prior to first oil

0

1

2

3

4

5

20-Aug 21-Aug 22-Aug 23-Aug 24-Aug 25-Aug

Swell Height

Sig Wave

Max Wave

Catcher Tamara Sebire

Catcher Area Development Manager

• All approvals received

– JV sanction in April

– Government (DECC) approval of

FDP in June

• Major contracts awarded

• Experienced project team in place to

deliver first oil in summer of 2017

• Robust project economics

– 96 mmboe

– Capex $2.25bn (gross)

– Pre-tax IRR > 20% based on $85/bbl

Catcher – 1H highlights

August 2014 | P12

August 2014 | P13

Catcher – execution phase progressing to schedule

Drilling• Contract awarded to Ensco

• Commence mid-2015

• 14 producers, 8 water

injectors

Model tanktesting

successful

Mooringsite surveycompleted

Subsea• EPCI: Subsea 7

• Template: Aquaterra

• Xtree and well production

systems: Dril-Quip

FPSO• Contract awarded to BWO

– 7yrs + options

– BWO financing in place

• Key sub-contracts awarded

– Hull: IHI

– Topsides design: Aibel

– Turret & mooring system: APL

Well sequencing

agreed

Fabricationcommenced

Carnabydiscovery

FPSO and SURF design and fabri-

cation commences

Formal concept select

Burgman and Varadero

discoveries

Catcher – look ahead

August 2014 | P14

Today

Acquired acreage as part of Oilexco

Catcher discoveryBonneville discovery

FPSO and SURF HUC

DECC approval Increased interest to 50% following

EnCore acquisition

• Experienced project team– >250 years project delivery experience across

leadership team • Cost certainty

– Leased FPSO– Lump sum contracts– 95% of contracts awarded or issued for tender

• Future opportunities– Reservoir upside– Bonneville and Carnaby– Exploration wells planned

for 2016

2009-2011 2012 2013 201620152014 2017 2018

SURFinstallation

Exploration

Development drilling

First

oil

ExplorationToby Garwood

Western Region Exploration Manager

Kenya – Block 2B, southern Anza Basin

August 2014 | P16

• Premier equity 55%

• Play opening test of the Tertiary

• Badada prospect

– Robust closure confirmed by

new 2D

– Premier gross resource

estimate: 13-90-363 mmbbls

(high value barrels)

– Spud late 2014 or

early 2015

A B

Badada-1~Base Quat

Mid Paleog

Base Neog

Mid Neog

Anza BasinAll 10 wells drilled

have oil / gas shows

Albertine Basin2.5 Bbbls discovered in

Tertiary fields

Lokichar Basin2 Bbbls discovered in

Tertiary fields

A

B

Look-a-like plays

to those proven

in Albertine and

Lokichar Basins

Norway – Mandal High

August 2014 | P17

• Myrhauk well – Q2 2015

– Play opening test

– Robust closure

– Gross prospective resource:

10-50-135 mmboe

• Significant running room

– >500 mmboe unrisked gross

prospective resource

Similar play

elements as at

Utsira High

North Falklands Basin –a proven, well calibrated petroleum system

August 2014 | P18

Mature oil source kitchen area

Brown = oilgeneratingsource rock

50k

m

F3 reservoir distribution

Zebedee

Chatham

Jayne-East

Isobel-Deep

Basement structure

Blue = DeepRed = Shallow

Sea Lion and satellites

North Falklands Basin –2015 exploration drilling campaign objectives

August 2014 | P19

Chatham

Zebedee

Isobel Deep

Jayne East

28 fans

identified

ZebedeeIsobelDeep

Jayne East

Chatham

1. SL western gascap appraisal

2. Extend F2 play South

3. Deepen play into F3

4. Prove-up southern area

Isobel-DeepMean STOIIP

Global Lacustrine fanfield analogues

Jayne East Mean STOIIP

Prospect volumes reality check

Total SouthernArea

Mean STOIIP

ZebedeeMean STOIIP

North Falklands Basin –impact of 2015 exploration on development volumes

August 2014 | P20

Phase 1 TLP

Devt Phase 3

Devt Phase 2

Chatham• Sea Lion western gas cap

appraisal

• If no gas, adds 60 mmbbls to

Phase 1

• Exploration deepening to

Chatham targets additional

4-19-80 mmbbls1

Zebedee• Low risk / high value prospect

• Adds 61-165-432 mmbbls1 to

Phase 2

Jayne East• Low risk / high value prospect

• Adds 23-73-232 mmbbls1 to

Phase 2

Isobel Deep• Designed to derisk undrilled

southern area of PL004

• 55-243-933 mmbbls11 Volumes quoted are grossunrisked prospective resources

Potential

for up to

2.1 Bbbls1

(mmbbls) DiscoveredMost likelyprospective

Upside prospective

Phase 1 308 387 448

Phase 2 87 325 751

Phase 3 - 243 933

North Falklands Basin –material and under-explored

August 2014 | P21

North Sea

Premier’s acreage covers an area equivalent to

55% of the North Sea South Viking Graben

• Equivalent SVG discovered Resource: 2.7 Bbbl

Maps

to same

scale

Falklands

Premier licences2441km2 / 942.59 miles2

FinanceAurangzeb Bozdar

Group Financial Controller

6 months to30 June 2014

6 months to30 June 2013

Working Interest production (kboepd) 64.9 58.6

Entitlement production (kboepd) 59.8 53.1

Realised oil price (US$/bbl) - pre hedge 109.4 107.2

Realised gas price (US$/mcf) - pre hedge 9.1 8.7

US$m US$m

Sales and other operating revenues 885 758

Cost of sales (646) (472)

Gross profit 239 286

Exploration/New Business (50) (22)

General and administration costs (13) (9)

Operating profit 176 255

Disposals (84) -

Financial items (41) (40)

Profit before taxation 51 215

Tax credit/(charge) 122 (54)

Profit after taxation 173 161

Increasing profitability

Operating costs (US$/bbl)

1H 2014 1H 2013

UK $35.0 $39.0

Indonesia $10.3 $9.4

Pakistan $2.9 $2.6

Vietnam $15.4 $14.4

Group $18.5 $16.0

Includes impairment charge of US$55m

(after tax) for Balmoral area and Huntington

Accounting profit from Scott area and Luno

II disposals will be booked on completion

offsetting recorded Block A Aceh disposal

UK tax credits for small field allowances for

Catcher fields and ring-fence expenditure

supplement

Liquids hedging

2H 2014 1H 2015

% hedged 53% 35%

Average price $103 $106

($/boe)

August 2014 | P23

Capital expenditure ($m)

1H 2014 FY 2014(e)

Exploration $91 $180

Development $415 $1,000

Total $506 $1,180

Will be repaid from enhanced share of

cash flows post first oil

Block A Aceh ($40 million), Scott area

($130 million) and Luno II ($17.5 million)

disposals to complete in 2H 2014

Strong, rising cash flows

6 months to30 June 2014

US$m

6 months to30 June 2013

US$m

Cash flow from operations 609 488

Taxation (110) (117)

Operating cash flow 499 371

Capital expenditure (506) (436)

Partner funding (Solan) (104) (51)

Disposals - -

Finance and other charges, net (48) (49)

Dividends/share buy back (77) (40)

Net cash out flow (236) (205)

Record first

half operating

cash flows

August 2014 | P24

Liquidity and balance sheet position

August 2014 | P25

At30 June 2014

$m

At31 Dec 2013

$m

Cash 255 449

Bank debt (721) (686)

Bonds (997) (992)

Convertibles 1(226) (224)

Net debt position (1,689) (1,453)

Gearing2 43% 41%

Cash and undrawn facilities 1,430 1,600

1 Maturity value of US$245 million2 Net debt/net debt plus equity

Drawn debt maturity profile (including

Letters of Credit)

Average debt costs of 4.8% (fixed) and

2.2% (floating)

Cash and undrawn facilities increased to

$2.7 billion after refinancing in July 2014

-

100

200

300

400

500

600

700

US

$ m

illi

on

s

OutlookTony Durrant

CEO

Government approval received from DECC

Building on our track record anddelivering our short term targets

August 2014 | P27

Production guidance 58-63 kboepd

Catcher sanction

Refinance 2015 bank facility

Exploration

Disposal programme

Solan on-stream

Sea Lion progress

~5 kboepd above guidanceDua, GSA5, Kyle, Pelikanand Naga

Refinanced on improved terms; facility increased to $2.5bn

~100 mmboe discovery on Tuna Block; continued licence divestment in UK & Norway; 2015/16 prospects matured

$190m of non-core asset sales announced

On course to achieve$300m target

Installation of facilities underway

First oil following completion of HUC

TLP FEED and exploration drilling contracts awarded

Farm down process targeted for Q4 2014/ Q1 2015

1) Deliver on short term targets for cash

flow growth and balance sheet

strength

2) Utilise share buybacks to buy

undervalued barrels

3) Selective growth using existing

strengths

August 2014 | P28

Looking forward

Q&A

Premier Oil Plc

23 Lower Belgrave Street

London

SW1W 0NR

Tel: +44 (0)20 7730 1111

Fax: +44 (0)20 7730 4696

Email: premier@premier-oil.com

www.premier-oil.com

21 August 2014