Sale of Block A Aceh, onshore Indonesia

PREMIER OIL PLC

("Premier")

Sale of Block A Aceh, onshore Indonesia

1 July 2014

Premier is pleased to announce the sale of its wholly owned subsidiary Premier Oil Sumatra North BV (POSN) to KrisEnergy Asia Holdings B.V. POSN holds a non-operated 41.67 per cent equity interest in Block A Aceh, located onshore North Sumatra, Indonesia.

The after-tax consideration is $40 million plus working capital adjustments.

Completion of the transaction is subject to the receipt of all government approvals.

Tony Durrant, Chief Executive, commented:

"We are continuing to deliver on our plans to dispose of $300 million of non-core assets this year, focusing our capital and people on the higher return projects in our portfolio."

Notes to editors

Block A Aceh includes the Alur Siwah, Alur Rambong, Julu Rayeu, the high-CO2 Kuala Langsa gas field and the recent Matang gas discovery.