Investor Presentation 01 October 2018 Highlights A commitment to - PowerPoint PPT Presentation

July 2019 Investor Presentation 01 October 2018

Highlights A commitment to responsible behaviour Being a responisble operator is the right thing to do and is critical to achieve our strategic objectives and financial success Greenhouse Gas Intensity (op. assets) Environment (kg CO 2 e/boe production) 30  Climate Change Policy being aligned with TCFD recommendations  Target top quartile HSES performance of IOGP peer group  Significantly reduced GHG intensity, no continuous flaring 25 Society  >$1bn total economic distribution, fully disclose all revenues to governments 20  Invest in local communities to provide sustainable benefits  Proactively manage Supply Chain to ensure highest of ethical standards met 15 Governance  Transparent and active engagement with all stakeholder groups 10  Foster a positive, dynamic culture from an inclusive workforce 2014 2015 2016 2017 2018  Zero tolerance to unethical behaviour Advocacy and supported initiatives July 2019 P1

Highlights 2019 highlights ytd Group production Catcher plateau production DELIVER kboepd kboepd (gross) 100 75  FY guidance increased (75-80 kboepd)  Catcher strong performance 75 50  Net debt reducing 50 25 25 EXPLOIT 0 0 2016 2017 2018 2019 Sanction Actual  Field life extensions ytd UK production Free cash flow  Near field additions kboepd $m  Optimal use of new technology 75 400 50 GROW 200 25  Tolmount Main sanctioned  Zama appraisal nearing completion 0 0 2016 2017 2019 2021F 2017 2018 2019F  Successful capture of new licences ytd July 2019 P2

Production Group production – two core areas Increased 2019 guidance Improved cash margins $/boe (Operating cash flow/production)  Strong start to the year, 30% 84 kboepd to end May Higher UK  High uptime of 96% margins  Improved cash margins SE 2018 2019 Increased 2019 guidance Asia 75-80 kboepd Operating efficiency % 96 87 84 Group production profile (2018 to 2019 ytd) 2018 1H 2018 2H 2019 YTD kboepd 100 2018 80.5 kboepd 2019 guidance: 75-80 kboepd 75 50 Jan 2018 Jan 2019 July 2019 P3

Finance Net debt reduction continuing Targeting leverage ratio of 1.5x over the cycle Accounting net debt  Significant debt reduction in 2018 $m  Further debt reduction in 2019 2800 – Expect to be at upper end of $250m-$350m 2600 – Forecast significant headroom against YE19 3x covenant leverage ratio 2400  Leverage to commodity prices after hedging 2200  40% of 2019 oil production hedged at $69/bbl 2000  Material liquidity of >$400m 1800 Point forward, at oil prices above 1600 $35/bbl YE2017 Bond 2018 FCF JV Cash* YE2018 YE2019 cash flow positive for full year 2019 Conv. * includes FX movement July 2019 P4

Finance Disciplined spend Capital expenditure Capex $m  Tolmount capex minimised through Abex P&D E&A 400 partnership with Kellas Midstream 46  Development capex lower year-on-year 300 100 38 with completion of Catcher 200  E&A spend heavily weighted towards 234 190 appraisal (Zama, Tolmount East) 237 100  Significant abandonment costs continue to 73 50 be deferred 26 0 2017 2018 2019F Operating and lease costs Operating and lease costs $/boe  Strong cost control across the Group Lease costs Opex 14  Slightly higher per boe metrics due to 12 portfolio effects and disposals 10  Lease costs relate to Catcher, Huntington 8 and Chim Sáo FPSOs 6 4 30% 2 Higher cash margins in 0 2019 2017 2018 2019F July 2019 P5

Production UK production Premier Oil UK UKCS 1 Growing production Extending Basin life kboepd mboepd 15 47 >60 1.4 1.6 1.7 2013 2018 2021F 2013 2017 2021F Reduced operating costs Reduced operating costs US$/boe US$/boe 40 13 13 26 15 2013 2018 2019F 2013 2017 >57 kboepd Improved operating efficiency Improved operating efficiency (net) 2019 ytd % % >90 kboepd 64 74 64 79 64 79 95 (gross, operated) 2021 2013 2017 2013 2018 2013 2018 2019 ytd 1 Company, Oil & Gas UK estimates July 2019 P6

Production South East Asia production 2018 net cash flow c.$230 million Stable production High operating efficiency Low cost base kboepd % US$/bbl 30 100 12 20 8 50 10 4 28 28 80 96 10 6 0 0 0 2013 2018 2013 2018 2013 2018 July 2019 P7

Production Chim Sáo (53.125% operated interest) Discovered Chim Sáo in 2006; acquired additional 25% stake for $72 million in 2009 DELIVER  2019 (to end May): 12.4 kboepd, 95% OE Chim Sáo field  Low cost base Chim Sáo South Central  Premium to Brent ($4/bbl 2019 ytd)  Two years of production without a LTI EXPLOIT Chim Sáo South Central  Infill drilling  Well intervention At sanction Produced to date Remaining  Near field addition (Chim Sáo South Central) 55 mmboe 77 mmboe 45 mmboe Chim Sáo production kboepd (gross) 35 At sanction Actual / Forecast Reserves upgraded 30 25 20 Continued field life 15 10 5 0 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 July 2019 P8

Production Natuna Sea Block A (28.67% operated interest) Dominant position in the Natuna Sea delivering gas in Singapore under long term gas sales agreements DELIVER Anoa  2019 to end May: 11.8 kboepd (net)  52% share of GSA1  High quality offtake contracts; low opex Gajah Baru On production EXPLOIT Under development Potential  BIG-P first gas  Infill drilling, well workovers  Perforation of bypassed reservoirs Pelikan Laba Laba  PSDM seismic reprocessing Natuna Sea Block A GSA1 market share Naga Gajah Puteri % 60 Bison 50 Benkantan Iguana 40 10 km 30 Natuna Sea Block A 20 10 YE2018 net 2P reserves 2019 ytd GSA1 market share 32 mmboe 52% 0 2013 2014 2015 2016 2017 2018 July 2019 P9

Production Catcher (50% operated interest) Discovered in 2010, increased stake via EnCore acquisition in 2012 Catcher Area oil production profile (gross) DELIVER kbopd 70  Final acceptance certificate issued Sanction Current / Forecast Upside  Increased oil rates of 66 kbopd (gross) 60  High operating efficiency 50 40 EXPLOIT 30  Multiple infill drilling targets  Upside in recovery 20  Optimising performance with technology 10  4D seismic planned for 2020 1H  Catcher North, Laverda sanction 2019 1H 0 Yr 1 Yr 5 Yr 10 Catcher oil rate (2018 to 2019 ytd) Final acceptance kbopd (gross) certificate issued Catcher Varadero Burgman 75 Since Nov 2018 2019 ytd OE 50 >68 kboepd 99% 25 0 Jan 2018 Jan 2019 July 2019 P10

Production Huntington (100% operated interest) Acquired through Oilexco (2009), subsequently increased stake via partner defaults (2015) and E.ON acquisition (2016) DELIVER  2019 to end May: 6.5 kboepd  Reduced lease cost  COP deferred EXPLOIT  Plant modifications to enable gas import  Conversion of former producer to injector Voyageur Spirit Huntington production kboepd At Sanction Actual / Forecast 14 12 10 8 6 4 2 0 2016 2017 2018 2019 July 2019 P11

Production Elgin Franklin (5.2% non-operated interest) Acquired as part of the $120 million E.ON acquisition in 2016 DELIVER  2019 to end May: 6.8 kboepd (net)  High operating efficiency, low opex  Reserves increased (extended COP , 4 infills and alignment with operator) EXPLOIT  Infill drilling  Well remedial work  Exploration upside Elgin Franklin production profile kboepd (gross) 140 At acquisition Actual / Forecast 120 100 80 Continued field life 60 40 20 0 2020 2025 2030 July 2019 P12

Development Strong portfolio with material upside Appraisal NA Delivering value via infrastructure led operations and growth projects required EXPLOIT Well Infill Near field Exploration Third party Field life intervention drilling additions upside business extension Catcher Elgin Franklin Solan Huntington Chim Sáo NSBA GROW Fully Infill Near field Exploration Third party Materiality appraised drilling additions upside business Tolmount Main Zama Sea Lion Tuna July 2019 P13

Development Tolmount Main – on track Progressing as planned Offshore installation (Heerema’s Sleipner) Jul 18 Dec 18 Jul 19 Dec 19 Jul 20 Dec 20 Jul 21 Partner sanction Detailed engineering Onshore construction Modifications Offshore installation Drilling First Steel Cut at Rosetti’s Production Ravenna yard Ensco 123 Pipelay (Saipem’s Castoro Sei) Centrica’s Easington Terminal July 2019 P14

Development Tolmount Main – key milestones Acquired 50% operated interest through E.ON acquisition in 2016; sanctioned August 2018  Construction of Tolmount platform (Q4 2018)  Easington terminal modifications (Q1 2019) Payback Net Capex $120 m <1 year  Saipem pipeline ordered (Q2 2019)  Platform sailaway and installation (Q2 2020)  Drilling starts (Q2 2020) Gross Peak Production Net Cash Flow  Terminal completion (Q4 2020) 58 kboepd >$1 Bn  Final hook up, commissioning (Q4 2020)  Tolmount First Gas (Dec 2020) Tolmount Main Free Cash Flow profile (net to Premier)* $m 300 250 200 Continued field life 150 100 50 0 -50 -100 2020 2025 2030 *Assumes 60p/therm July 2019 P15