Optional Redemption Notice

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION TO ANY US PERSON (AS DEFINED IN REGULATION S ("REGULATION S") UNDER THE UNITED STATES SECURITIES ACT 1933, AS AMENDED ("SECURITIES ACT")) OR IN OR INTO THE UNITED STATES, ITS TERRITORIES AND POSSESSIONS (INCLUDING PUERTO RICO, THE US VIRGIN ISLANDS, GUAM, AMERICAN SAMOA, WAKE ISLAND AND THE NORTHERN MARIANA ISLANDS), ANY STATE OF THE UNITED STATES OR THE DISTRICT OF COLUMBIA (THE "UNITED STATES") OR TO ANY PERSON LOCATED OR RESIDENT IN ANY OTHER JURISDICTION WHERE IT IS UNLAWFUL TO DISTRIBUTE THIS DOCUMENT.

THIS LETTER IS IMPORTANT AND REQUIRES YOUR IMMEDIATE ATTENTION. When considering what action you should take, you are recommended to seek your own personal advice immediately from your solicitor, accountant or other professional adviser authorised under the Financial Services and Markets Act 2000.

Unless the context otherwise requires, the definitions in the terms and conditions of the Bonds (defined below) shall also apply to this notice.

15th November 2012

To the holders of the outstanding US$250,000,000 2.875 per cent. Guaranteed Convertible Bonds due 2014 (the "Bonds") of Premier Oil Finance (Jersey) Limited (the "Company")

 OPTIONAL REDEMPTION NOTICE

Notice is hereby given that, pursuant to Condition 9(b)(ii) of the terms and conditions of the Bonds, the Company will redeem on 17th December 2012 (the "Optional Redemption Date") all outstanding Bonds at their principal amount (being as of 14th November 2012, US$4,676,000 in aggregate), together with accrued interest thereon.

You have the right to exercise your Exchange Rights in accordance with the terms and conditions of the Bonds by no later than the close of business on 11th December 2012. The Exchange Price as at the date of this notice is £3.39 per Ordinary Share and the closing price as of 14th November 2012 was 334.10p per Ordinary Share.

This Notice is given by:PREMIER OIL FINANCE (JERSEY) LIMITEDIncorporated with limited liability in Jersey with registered number 97486Registered address: 22 Grenville Street, St. Helier, Jersey JE4 8PX