Oil Capital Investor Conference May 2017 Forward-looking - PowerPoint PPT Presentation

Oil Capital Investor Conference May 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. May 2017 | P1

Agenda Overview Tony Durrant Exploration – Mexico Dean Griffin Outlook Tony Durrant May 2017 | P2

Production overview Largest 5 fields account for c. 70% of production May 2017 | P3

Catcher – under budget, start up 2017 2H • 2016 subsea installation programme successfully completed • 10 wells completed to date with excellent operational performance • Commissioning of FPSO underway • On schedule for 2017 first oil • Capex reduced by 29% to $1.6bn Varadero Net pay Net pay length - Producers length (ft) 12000 Predicted cumulative NPL 10000 Actual cumulative NPL 8000 6000 Net pay Catcher encountered 4000 above prognosis 2000 Burgman 0 CCP3 CTP1 BP3 BP5 VP2 VP3 VP4 May 2017 | P4

Tolmount – next phase of growth • Most significant discovery in SNS since 1997 • Concept selected Q1 – Standalone, normally unmanned – 4 platform wells – 48km x 20” gas export to onshore • FEED contracts awarded • Potential 3 rd party infrastructure funding • FID targeted for Q1 2018 • Significant upside at Tolmount East and Tolmount Far East Indicative metrics • ~ 1 Tcf potential (GTA) High return Onshore Drillex terminal 25% • Capex ~$550m project robust 27% Capex down to low • Designed for daily peak Split gas prices Owners production of 300 mmcfd 14% SURF 19% • First gas 2020 Platform 16% May 2017 | P5

Portfolio potential Sea Lion Catcher Tolmount 700 mmboe of discovered but Cash flows prioritised towards net debt reduction and selective investment undeveloped reserves & resources Tuna Exploration May 2017 | P6

Premier’s exploration footprint • Two core focus areas: – Mexico (Sureste) – Brazil (Ceara) • Exited/exiting positions YE2016 2016 Production Reserves & Resources in Iraq, Kenya, Norway, Pakistan, SADR, UKCS UK 11% Asia (ex-E.ON) & Vietnam 28% Pakistan • Provide legacy portfolio Falklands 71.4 835 46% 47% kboepd mmboe management and 43% exploitation support to 23% 2% the business units May 2017 | P7

Why Mexico? gas Perdido Perdido oil • Deep water, emerging • Deep water, emerging • Oil + assoc. gas • Oil + assoc. gas Area proportional to • Main play: Neogene and • Main play: Neogene and Burgos Burgos discovered resource Paleogene clastics Paleogene clastics • Onshore, mature • Onshore, mature Burgos • Salt plays • Salt plays • Gas, minor oil • Gas, minor oil • Main play: Paleogene Deltaics • Main play: Paleogene Deltaics Salina del Bravo Mexican Ridges Mexican Ridges & Perdido Tampico - Misantla Tampico - Misantla • Slope & deep water, Frontier • Slope & deep water, Frontier • Onshore, mature • Onshore, mature 0.5 bn boe • Possible Gas (Tertiary SR), • Possible Gas (Tertiary SR), 2.0 bnboe • Oil + assoc. gas • Oil + assoc. gas but unknown but unknown • Main plays: Jurassic / • Main plays: Jurassic / • Main Play: Paleogene & • Main Play: Paleogene & Cretaceous carbonates Cretaceous carbonates Neogene DW Clastics Neogene DW Clastics Mexican Ridges 0.4 bn boe Campeche Campeche • Slope & deep water, frontier • Slope & deep water, frontier 14 bnboe • Probably mixed oil and gas • Probably mixed oil and gas • Main play: Neogene DW • Main play: Neogene DW Tampico- Clastics Clastics Sureste • Salt plays • Salt plays Misantla Campeche Sureste (offshore) Sureste (offshore) Veracruz Veracruz 0.3 bn boe • Shallow to deep water, • Shallow to deep water, • Onshore, mature • Onshore, mature emerging emerging • Gas, minor oil • Gas, minor oil Veracruz Sureste • Oil +assoc. gas • Oil +assoc. gas • Main plays: Cretaceous • Main plays: Cretaceous • Main play: Cretaceous / • Main play: Cretaceous / carbonates; Tertiary carbonates; Tertiary Jurassic carbonates; Jurassic carbonates; deep water sandstones deep water sandstones 0.9 bn boe Neogene clastics Neogene clastics • Salt plays • Salt plays • Premier screening high-graded Sureste basin as best 61 bnboe fit for entry Sureste May 2017 | P8 Basins/Plays -discovered resource (source IHS)

Energy sector reform • Opening of a high potential energy sector to foreign investors after 78 years of state monopoly • Established a clean and transparent process with an independent regulatory body CNH • Extensive modern datasets available for a reasonable cost across the majority of the plays • CNH and SENER (Ministry) are listening to the industry and are continuing to improve both the licencing process and terms • No signature bonuses and reduced local content requirements • Bid government take and defined work programme • Large tracts of unlicensed acreage in proven basins with regular tender process May 2017 | P9

Well and seismic data available at low cost • Over 100,000 km 2 of 3D data available – majority is modern • 3D datasets and wells can be purchased as part of the bid round packages • Facilitates ability to compete technically and at low cost

Sureste basin licence position • Successful entry (10% carried) into Blocks 2 & 7 in Q3 2015 • Increased equity to 25% (paying) in Block 7, ahead of Zama well 13 11 12 14 10 9 Block 7 7 8 Offered in Round 1.4 6 8 7 6 Block 2 • Ability to grow – plan to participate in upcoming Licence Round 2.1 on 19 June May 2017 | P11

Block 7 Zama prospect (Premier 25%) • Talos operate W Zama-1 Well E • Expected spud date by end of May using the Ensco 8503 rig full stack reprocessed seismic data in depth • Low risk, 100-500 mmbbl prospect in 165m of water Flat Spot 3D view of the Zama Prospect showing top structure map and Zama-1 Well seismic amplitudes of ENSCO 8503 the target interval salt salt Good conformance of seismic amplitude with structural contours May 2017 | P12

2017 – targets Maintain operating efficiency levels; Production Meet guidance of 75 kboepd (excluding Catcher) Cost Base Targeting further reductions in opex and G&A costs Non-core disposals Realise >$100m from non-core disposals Deliver first oil in 2017; build on development drilling programme Catcher to optimise forward production; further cost reduction Progress FEED and commercial discussions for Premier Board Tolmount approval in Q4 Financing and commercial initiatives to bring Sea Lion to next Future Growth phase in 2018 Exploration Identify and test best prospects eg Mexico (2017) Net debt reduction Positive net cash flow, post disposals May 2017 | P13

Questions

May 2017 www.premier-oil.com 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