Investor Presentation Highlights Delivery against 2019 targets - PowerPoint PPT Presentation

February 2020 Investor Presentation

Highlights Delivery against 2019 targets 2019 production of 78.4 kboepd, at upper end of guidance Production 2020 guidance of 70-75 kboepd (before proposed acquisitions) Premier’s next growth project progressing under budget Tolmount DELIVER On schedule for first gas end 2020, adding 20-25 kboepd (net, 50%) Strengthening Net debt reduced by over $330 million to $1.99 billion Balance Sheet Covenant leverage ratio reduced to 2.3x No serious injuries, spills or process safety events HSE GHG intensity reduced Field life Catcher reserves upgrade planned for YE19 EXPLOIT extensions Successful intervention and infill drilling campaigns Near field BIG-P First Gas delivered on schedule & below budget additions Tolmount East success; Catcher satellite developments approved Zama sale initiated following successful appraisal campaign Pre-developments Heads of Terms agreed for proposed farm out of Sea Lion and Tuna GROW Exploration & Andaman Sea position enhanced appraisal Entry into Alaska: Malguk-1 appraisal well to spud in February February 2020 P1

Highlights Strengthened commitment to ESG Examples of actions being taken to reduce  Climate Change future emissions Committee established  Tolmount will be powered by a gas micro-  Climate Change Policy turbine aligned with TCFD  Solan will be gas powered following P3 recommendations completion  Initiated review of  Committed to minimise (by design) Scope 1 operations to identify GHG emissions from Sea Lion FPSO further opportunities to reduce emissions  OPT Power Buoy (Huntington) deployed; will help minimise environmental impact of 8.3 kg CO 2 e/boe decommissioning Catcher GHG intensity 2019 1H Strong performance during 2019 1H Group GHG intensity kg CO 2 e/boe  Catcher very low GHG intensity 30 – New build FPSO – Modern gas recovery and treatment system  Better use of gas power generation at Huntington 20  Active LDAR (leak detection and repair) programmes to minimise fugitive gas emissions 10  High operating efficiency 2014 2015 2016 2017 2018 2019 1H February 2020 P2

Production Strong 2019 production performance Catcher (50% op) Huntington (100% op) Elgin Franklin (5.2% non-op)  33.6 kboepd (net)  5.8 kboepd (net)  6 kboepd (net)  Excellent operating efficiency  Scale squeeze  Interventions, infills  Plateau extended to 2021  Power Buoy installed  Field life extended to 2039 Estimated 2019 FCF >$550m Chim Sáo (53.1% op) NSBA (28.7% op) Group production (kboepd) 100  11.4 kboepd (net)  11.5 kboepd (net)  Successful interventions  BIG-P on-stream 80  Opex savings  Gajah Baru 8 yrs without LTI 60 40 20 0 FY 2017 FY 2018 2019 UK Vietnam Indonesia Pakistan February 2020 P3

Highlights Top tier operating efficiency UK operating efficiency UKCS operating efficiency trend %  UKCS operating efficiency 91 improved for sixth PMO UK OE consecutive year 75 74 73 71 65  PMO 3 year average (2016-2018) 80% 64 60 compared to UKCS of 74%  PMO 2019 UK operating efficiency of >90% 2012 2013 2014 2015 2016 2017 2018 2019 1H Group operating efficiency  Continued investment in asset % Budget Actual integrity through the cycle 100  Underpinned by almost 100% operating efficiency at Catcher – New build FPSO 80 – Plant/reservoir management – Excess well deliverability >90%  Real time monitoring and 2019 optimisation 60 Catcher Elgin Huntington Solan UK Chim Sao Anoa Gajah Baru Group Franklin February 2020 P4

Production Incremental investments generating $650m NPV Approved investments  Converting resources Asset Activity Timing into the production Elgin Franklin Infill programme Ongoing base Chim Sáo Well intervention campaign 2019 Ravenspurn North 2 Infill wells 2019/20 Solan Third development well (P3) 2020 19 th well, Catcher North, Laverda Catcher Area 2020 Asset opportunities being matured  Investments expected to Asset Activity Timing be approved within next NSBA 2 infill wells and a side track 2021 12 months Chim Sáo 2 infill wells, well interventions 2021 Catcher Area 4 infill wells 2021/2  Additional upside (not Solan Water Injection side track 2022 listed here) still to be fully defined Elgin Franklin 2 infill wells 2022 5 th well, Tolmount East Tolmount 2022/23 February 2020 P5

Production Delivers a new base profile  Investment characteristics – Low cost, rapid payback projects (typically less than 1 year) – High return on capital (IRR>20%) – Robust at low oil prices  Maintains production at 75-80 kboepd out to 2024 Indicative production profile Growth projects kboepd Awaiting approval Base profile 100 0 2019 2020 2021 2022 2023 2024 2025 February 2020 P6

Development Tolmount – on track Plateau Gross resource Net Capex Payback production gross 500 Bcf $120 m <1 year 50 kboepd Tolmount : Premier’s next UK growth project kboepd (net, Premier 50% op.) Tolmount 5th well, Tolmount East 20 0 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 Centrica’s Easington Terminal Platform construction Pipelay ( Saipem’s Castoro Sei) Offshore installation Ensco 123 ( Rosetti’s Ravenna yard) ( Heerema’s Sleipner) Offshore installation Drilling starts Q2 Platform sailaway Q2 2020 Pipelay to commence in mid-2020 scheduled for Q2 2020 Modifcations underway 2020 February 2020 P7

Development Material upside beyond Tolmount  Targeted 220 Bcf (P50) gross resource – Well results currently under evaluation  Reservoir quality & thickness at upper end of expectations – 71% NTG, 16% porosity, 82% gas saturation  Tolmount East to be tied back to Tolmount – Development planning already underway – Benefits from low tariff structure, quick Mongour discovery Tolmount Far East prospect pay-back – Potential to extend infrastructure funding similar to existing Kellas arrangements  Positive implications for other targets within the Greater Tolmount Area Tolmount East discovery – Reduces uncertainty at Tolmount Far East Tolmount development – Unlocks the Mongour discovery Pre-drill top depth structure map February 2020 P8

Development Block 7 Zama oil field successfully appraised  Sales process underway for Premier’s 25% interest in Block 7 – Highly-marketable asset – Materially strengthens balance sheet  Bid deadline extended to December to accommodate significant interest  Optimal time to monetise – Appraisal campaign completed P50-P10 resource (gross) – Significant resource upgrade 810-970 mmboe – Modest capital investment to date Indicative development  FDP submission targeted for 2020 P9  Simple, conventional development plan  Peak gross production of Largest offshore oil discoveries in last 5 years 150 – 175 kboepd mmbbls  Long life plateau of 120 kbopd 2,000 4,261 (gross) to 2040+ 1,600  Robust economics: PSC regime, <$4/bbl capex 1,200 2,000 1,800 800 400 822 810 403 400 400 390 372 341 307 300 0 Stabroek block Khalij Al Tulimaniq Neptune Zama Ballymore Central Guanxuma SNE Whale Anchor Pobeda MRL-231 Bahrain Olginskoye Source: Woodmac February 2020 P9

Development Sea Lion – the opportunity  World scale development  Conventional new build FPSO/subsea development – Substantially de-risked – Best available technology  Tier 1 supply chain in place – Value engineering complete – Vendor funding agreed  Project optimised – Reserves increased to 250 mmbbls – $1.8bn pre-first oil capex (gross) – Rapid payback, high capital efficiency Phase 1  HoT agreed with Navitas cash breakeven Peak annual FCF ~$40/bbl >$1.5bn – Interests aligned – RKH’s share of devex split pro Financing plan advanced rata between PMO and NAV • PIM, Expert Reports submitted to Export Credit Agencies  Supportive government with • Vendor funding agreed with main contractors attractive fiscal regime • Heads of Terms agreed for Navitas to farm in for 30% interest February 2020 P10

Exploration Disciplined approach to exploration and appraisal 650 mmboe of net prospective unrisked resource to be drilled in the next three years  Target under-explored, emerging plays in proven hydrocarbon provinces Alaska – Expanded South Andaman Sea position – Successful entry into the Alaska North Slope  Drill high impact wells within a strict capital discipline framework (c. $75m per annum) Indonesia  Current industry conditions favour cost effective acreage acquisition  Focused on maximising value through divestment or future development 2019 2H UKCS Tolmount East success Alaska Malguk-1 appraisal well Alaska UKCS 4D seismic over Catcher Area 2020 United Kingdom Brazil Ceara 717 exploration well Mexico Block 30 exploration well Mexico Alaska Malguk-1 appraisal well side-track Indonesia Brazil 2021 Indonesia Andaman Sea drilling starts Brazil Ceara 661 exploration well Block 30 2 nd exploration well Mexico 2022 UKCS Tolmount Far East well February 2020 P11