Slaughter and May, working with the in-house team at Premier Oil Exploration and Production Limited ('Premier'), advised Premier on heads of agreement ('Heads of Agreement') with Falkland Oil & Gas Limited ('FOGL') and Rockhopper Exploration (Oil) Limited ('Rockhopper') with respect to a farm-out of Falkland Islands oil and gas exploration licences (the 'Farm-Out'); and related arrangements between Premier and Rockhopper.

The Heads of Agreement, were announced on 3 October 2013, simultaneously with a proposed all share merger between FOGL and Desire Exploration plc ('Desire') to be implemented by way of a scheme of arrangement. Completion of the Farm-Out is subject to the Scheme becoming effective, any required approvals from the Falkland Islands Government and completion of definitive documents in respect of the Farm-Out.

Under the terms of the Farm-Out, Premier and Rockhopper will increase their interests in the two Falkland Islands oil and gas exploration licences licenses to 36% and 24%, respectively, and in return will fund Desire’s share of exploration costs for two future exploration wells.

CONTACTS

Corporate and Commercial: Hywel Davies (partner), Peter Sugden (associate)

Premier Oil Exploration and Production Limited: Andrew Gibb