Lender Discussions Update

PREMIER OIL PLC

("Premier" or "the Company")

Lender discussions update

01 July 2016

As previously announced, Premier is in discussions with its lending group on the terms of its existing financial facilities. These are progressing well.

The lending group has agreed that the test of Premier's financial covenants at 30 June 2016 will be waived and replaced by a test for the 12 month period ending 31 July 2016. This deferral allows further time to agree amendments to Premier's medium term covenant profile and the resetting of its debt maturities. In return for the proposed amendments, it is anticipated that additional security will be provided for existing debt holders.

Premier expects negotiations to conclude during Q3 2016. Further deferral of the covenant test date will be sought if required.

Premier continues to have access to undrawn funds within its Revolving Credit Facility (RCF) to allow the company to meet its ongoing funding requirements.