Potential Sale of Wytch Farm interests

PREMIER OIL PLC

("Premier")

Potential Sale of Wytch Farm interests

22 August 2017

Premier notes today's media speculation and confirms that it has reached agreement with a third party for the disposal of its entire 33.8% interest in the Wytch Farm field. The proposed consideration is $200 million and Premier will also expect to release letters of credit, amounting to approximately $75 million, held in connection with future field abandonment liabilities. Wytch Farm production to 30 June, net to Premier's pro forma 33.8% interest was 5.0 kboepd.

The transaction is subject to signature of a sale and purchase agreement and to lender approval, a process which is under way. Given the size of the consideration, the transaction is likely to be classified as a Class 1 transaction requiring shareholder consent. A further announcement will be made when appropriate.