Market speculation

This announcement has been determined to contain inside information

PREMIER OIL PLC

("Premier" or "the Company")

Market speculation

8 November 2016

Premier notes the movement of the share price over the past two days and speculation regarding secondary market activity by the Company's debt holders. The Company has received assurances that none of its senior lenders represented on the Bank Creditors Committee have exited, or are proposing to exit, their loan position at this time (including Lloyds Bank). There have been no changes to the composition of the Bank Creditors Committee.

Discussions with the various lending groups on the Company's proposed refinancing continue to progress towards a near term agreement of all parties. Premier retained significant cash and undrawn facilities of c.US$800 million at 30 June 2016 and continues to have access to undrawn headroom under its main facility, with the agreement of its banks.A further update is planned in conjunction with the Company's Trading and Operations update on November 17th.