Director Disclosures: S430(2B) Companies Act 2006

Premier Oil plc(the "Company")

S430(2B) of the Companies Act 2006 - Simon Lockett

Further to the announcement by the Company on 4 February 2014, Simon Lockett stood down as CEO on 26 June 2014. Simon Lockett now stands down as an Executive Director and will leave the Company with effect on and from 15 August 2014.

The information required to be made available by section 430(2B) of the Companies Act 2006 is set out below.

In accordance with the service agreement of Simon Lockett and the Remuneration Policy Report, the following has been agreed.

Payment in lieu of notice

Simon Lockett had a 12 month notice period and the Company will be making a payment of 12 months' salary and benefits of £683,996 gross calculated as (a) base salary of £569,000 and (b) payment in lieu of benefits of £114,996 comprising car allowance and pension, subject to mitigation if Simon Lockett were to start a new executive or NED role for another organisation during this 12 month period.

Simon Lockett is permitted to accept fees of up to £100,000 pa gross without an obligation to mitigate in respect of NED appointments (excluding Chairman appointments).

The Company will continue to provide life assurance cover (plus up to £3,000 for tax payable by Simon Lockett on this cover) and private medical insurance for the period of Simon Lockett's notice on the same basis as currently provided.

2014 Annual Bonus Payment

Under the terms of his contract, Simon Lockett is entitled to receive his annual bonus payment for 2014 which will be reduced on a time worked basis to reflect his departure date of 15 August 2014. In addition, any unvested deferred share awards held by Simon Lockett will vest on 15 August 2014. The amount of his annual bonus will be confirmed in the 2015 Directors' Remuneration Report and will be worked out as follows:

· in respect of the corporate target element of the bonus, the same percentage awarded to the other executive directors; and

· in respect of the individual target element of the bonus, 15% of Simon Lockett's annual salary as at 15 August 2014.

Long Term Incentive Awards

Simon Lockett's existing share incentive benefits will be treated in accordance with the rules of the applicable plan and will remain subject to the terms contained therein. The 2012, 2013, and 2014 LTIP awards will be pro-rated on a time worked basis. These awards will vest, subject to performance, at their normal vesting date, in accordance with the good leaver provisions in the Company's LTIP rules. This information will be updated in the 2015, 2016 and 2017 Directors' Remuneration Reports.

Pension - Related Benefits

In relation to the Company's contractual obligations to Simon Lockett to provide a pension substantially as if he was a member of the defined benefit pension scheme without the earnings cap, the Company's obligations were settled by a lump sum payment of £486,100 gross.

Legal fees

Simon Lockett will also receive a contribution of £25,000 plus VAT towards legal fees incurred in connection with his departure.

Payment for loss of employment in settlement of potential claims

Simon Lockett will be paid £50,000 gross by way of payment for loss of employment in settlement of potential claims arising in connection with his employment and its termination.

Further enquiries:

Stephen Huddle, Company Secretary Tel: +44(0)20 7730 1111