Investor Presentation 01 October 2018 Highlights 2020 1H - PowerPoint PPT Presentation

July 2020 Investor Presentation 01 October 2018

Highlights 2020 1H highlights  Production of 67.3 kboepd; safe and responsible operations maintained  $240m of savings and deferrals (capex and opex)  Solan P3 first oil by end Q3, adds c. 10 kbopd  Tolmount: final topsides commissioning underway ahead of August sailaway; first gas Q2 21, adding Crew change at Catcher 20-25 kboepd post ramp-up Transocean Leader drilling Solan P3  Operated growth projects preserved; highly prospective exploration acreage retained  Zama unitisation & sales process ongoing: SENER instruction received (July); 120 days to agree  Amended BP acquisitions approved by creditors, subject to SPA finalisation, equity funding and Castoro Sei laying pipe at Tolmount agreed refi terms; adds c. 17 kboepd  Discussions underway with subset of creditors; aim to agree terms to a long term extension to our credit facilities by end July  Net debt reduced to $1.97 bn, financial covenants waived through to end Sept 2020; forecast free cash flow positive for 2020 at forward curve July 2020 P1

Highlights BP acquisitions & lender discussions Strong strategic rationale behind UK acquisitions  Strengthens UK business and diversifies portfolio  Accelerates balance sheet deleveraging  Accelerates use of Premier’s UK tax losses  Track record of capturing value through acquisitions Status of UK acquisitions  Integration and transition work well advanced  Terms adjusted to reflect market conditions  Lender consent received  Remain subject to SPA finalisation, agreed refinancing terms and equity funding  Targeting 30 September for completion Status of refinancing  Stable Platform Agreement approved; financial covenants waived through to 30 September  Discussions with a subset of creditors regarding long term extension to Group’s credit facilities progressing  Targeting end July for agreed refi terms which can then BP acquisitions to add c. 17 be recommended to full lender group for approval kboepd (net) in Q4 2020 July 2020 P2

Production Production assets overview 2020 1H Outlook UK 47 kboepd  Production averaged 67.3 kboepd  Rising production profile  FY guidance 65-70 kboepd – Increased contribution from tax advantaged UK assets – Solan P3, Varadero infill drilled SE Asia 23 kboepd – Stable Asia production – Catcher outage (now restored)  High value infrastructure led – Huntington, Kyle COP opportunities  No recordable injuries on any  Continuous review of operated Premier operated sites assets to minimise emissions  Proposed UK acquisitions announced Net debt Operating efficiency 1 $m % 100 3000 Premier (Group) UKCS avg 80 2500 60 2000 40 1500 20 2016 2017 2018 2019 2020 1H 2017 2018 2019 2020 1H 1 Company estimates, Oil and Gas Authority data July 2020 P3

Production UK North Sea 2020 1H performance Outlook  45.0 kboepd, underpinned by Catcher which  Varadero infill to be brought on-stream end Q3 averaged 28.4 kboepd (net)  Solan P3 horizontal, expected to boost field  Elgin Franklin: 7.3 kboepd (high OE and production by >10 kbopd in Q4 completion of FIC infill well)  Catcher North and Laverda drilling deferred  Huntington COP in April with FPSO sailaway planned for mid-year UK field opex of >$2/bbl prm to Brent $13.5/boe (2020 1H) (Catcher 1H cargos)  Solan P3 horizontal well successfully drilled Catcher plateau rates kboepd (gross) 60 40 20 0 Sanctioned First Oil 2019 2020F July 2020 P4

Production South East Asia Cash generative: c.$50 million of free cash flow generated from NSBA & Chim Sao during 2020 1H NSBA, Indonesia (28.7% op) NSBA production kboepd (net)  2020 1H: 13.2 kboepd (net) 15  Low opex of $6/boe  Infill wells identified to 10 maintain profile  48% of 2020 production hedged at c.$9/mscf 5 57% 0 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 GSA1 market share Q1 2020 Chim Sáo, Vietnam (53.1% op)  2020 ytd: 9.1 kboepd  Low opex of $9/boe >$5/bbl  Ongoing well interventions av. premium to Brent (Chim Sáo 2020 1H cargoes)  2021 infill wells deferred July 2020 P5

Development Tolmount Area  500 Bcf gross resource  50 kboepd gross peak rates  Modest capex; low opex  Partnership with Kellas who are partially funding the capex  Revised schedule with first Tolmount topsides final commissioning Tolmount jacket roll up achieved in Dec 19 gas now Q2 2021 Tolmount indicative production profile 1  Significant upside within the kboepd (net, Premier 50 per cent) Greater Tolmount Area 30 Tolmount Tolmount East – Tolmount East, Mongour 25 discoveries – Tolmount Far East, Tolmount 20 South 15 – Initial results from 4D seismic survey very encouraging 10 5 <2 years Tolmount Main payback 0 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 1 Company estimates July 2020 P6

Development Development asset review Tolmount East Area Block 7 Zama oil field 1 Tuna discoveries Sea Lion Phase 1  160-300 BCF gross  810-970 mmbbls gross  100 mmboe gross  250 mmbbls gross resource (P50-P10) resource (P50-P10) resource  Conventional FPSO and including Mongour  Simple, conventional  Farm out agreed with subsea development  Subsea development development plan Zarubezhneft, subject  FEED completed concept; FEED to government  Long life plateau of  Technical work now underway approvals 120 kbopd (gross) to paused with work done  Designed for electric 2040+  Premier carried for two to date fully power appraisal well campaign  Robust economics: PSC documented planned for 2021  Project sanction regime  Reduced team to decision by year-end  MoU signed for sale of  Unitisation and sales progress regulatory 2020 Tuna gas to Vietnam process ongoing and financial matters  Extends Tolmount  Preparation of net zero  Transaction plateau production development plan documentation with underway Navitas being progressed Premier, 50% op Premier, 25% non-op Premier 2 , 50% op Premier 2 , 40% op 1 Extends into neighbouring block which is 100% owned by Pemex 2 Working interest, assuming proposed farm outs July 2020 P7

Development Development asset review – a Net Zero Commitment Low Carbon by Design  Measuring, managing and minimising Premier’s emissions  Emissions Hopper approach  Best Available Technology Carbon Neutral by Commitment  Nature- based offsetting in Premier’s geographies  All operated developments will be Carbon Neutral (Scopes 1 and 2) Reducing Scope 1 emissions  Premier’s activities will be:  Use of normally unattended facilities – >65% net zero by 2025  Removal of CO 2 from the gas stream for re-injection – 100% net zero by 2030  Minimisation of all venting and flaring  Electrification of platforms, vehicles etc where possible GHG intensity  Minimisation of offshore support vessels kgCO 2 e/boe Reducing Scope 2 emissions 25  Efficiently generate our own power 20 Advocacy and supported initiatives 15 10 2017 2018 2019 P8 July 2020

Exploration High value exploration portfolio Targeting under explored plays in proven hydrocarbon basins Wahoo prospect, Block 30, Mexico Area A, Alaska North Slope  Charlie-1 well drilled in Q1 >300 mmbbls  Extended Brookian play south but On block gross resource potential encountered gas condensate Block 717, Brazil  Berimbau/Maraca targeting 100-600 mmbbls (gross, P90-P10) Flat Spot  Well deferred to 2021 Mexico  Block 30: Wahoo flat spot similar to Expanded position in South Andaman Sea, Indonesia Zama; drilling deferred to 2022 Timpan DHI  Burgos Blocks 11 & 13: 3D seismic Multi-TCF reprocessing gross potential Andaman Sea, Indonesia  3D survey completed with highly Timpan-1 encouraging initial results  Timpan (Andaman II, PMO 40% op) now planned for 2022; targeting 1.5 TCF of gross unrisked resource July 2020 P9

Summary Forward production profile  Rising, highly cash generative production base  Near to medium term growth from UK assets; South East Asia stable  Longer term growth from new international projects  Excludes contribution from proposed UK North Sea acquisitions Indicative production profile kboepd Base profile Awaiting approval Growth projects July 2020 P10

Summary 7 year balanced capital allocation (2020 to 2026) Reinvestment in new projects will be measured against shareholder returns Non-discretionary Discretionary 100% 25% 10% 10% 10% 45% 2018-2019 allocation At $65/bbl, 40p/therm the business will deliver  Debt reduction 40%  Positive free cash flow in all years  Producing assets / abex 20%  Production averages >100 kboepd by period end  New projects 25%  Covenant level of <1x by period end July 2020 P11