Refinancing Update

THIS ANNOUNCEMENT IS NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES OR ANY OTHER JURISDICTION IN WHICH IT WOULD BE UNLAWFUL TO DO SO.

This announcement has been determined to contain inside information

PREMIER OIL PLC

('Premier')

Refinancing update

30 May 2017

Premier is pleased to announce that, in connection with its proposed refinancing and in line with previous announcements, the Court scheme convening meeting was held earlier today and the Group has now published the scheme and convertible bond documentation, shareholder circular and a prospectus relating to the warrants that are proposed to be issued to certain creditors.

Copies of the shareholder circular and the prospectus are available on Premier's website at www.premier-oil.com. The shareholder circular, which contains the Notice of a General Meeting to be held at 9.00am on 15 June 2017 at The Grosvenor Hotel, 101 Buckingham Palace Road, London SW1W 0SJ, is available under the Investors, Shareholder Information section. Copies of the shareholder circular and prospectus will be submitted to the National Storage Mechanism and will shortly be available for inspection at www.Hemscott.com/nsm.do.

A copy of the explanatory statement in relation to the schemes is available for scheme creditors, free of charge, by contacting Lucid Issuer Services Limited ('Lucid'), the information agent appointed in respect of the schemes, at [email protected] or via the schemes website www.lucid-is.com/premieroil. Similarly, a copy of the consent solicitation memorandum in relation to the convertible bond extraordinary resolution is available for convertible bondholders, free of charge, by contacting Lucid at the contact details noted above.

IMPORTANT NOTICE

This announcement is for information purposes only and is not intended to, and does not constitute or form part of, any offer or invitation to purchase or subscribe for, or any solicitation to purchase or subscribe for, any warrants or shares or any other securities of Premier Oil plc, Premier Oil Finance (Jersey) Limited and Premier Oil UK Limited (all together, the 'Securities') in any jurisdiction in which such an offer or solicitation is unlawful. The information contained in this announcement is not for release, publication or distribution to persons in the United States and should not be distributed, forwarded to or transmitted in or into the United States or any jurisdiction where to do so might constitute a violation of local securities laws or regulations.

The Securities have not been, and will not be, registered under the US Securities Act of 1933, as amended (the 'US Securities Act'), or with any securities regulatory authority of any state or any other jurisdiction of the United States, and may not be offered, sold, resold, pledged or otherwise transferred in the United States except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the US Securities Act and in compliance with all applicable securities laws of any state or other jurisdiction of the United States. The opportunity to subscribe for warrants will be available only to certain existing creditors of Premier Oil plc, Premier Oil UK Limited and Premier Oil Finance (Jersey) Limited. There will be no public offer of any Securities in the United States.