Premier Oil risks Argentine wrath with Falklands deal The company said on Thursday it would pay Rockhopper an initial $231m in cash as well as providing around $770m to help build the infrastructure to get oil pumping from the explorer's Sea Lion discovery. The discovery of oil in the Falkland Islands in 2010 has angered Argentina, which has actively pressed its case to take conrol of the disputed territory with verbal attacks on Britain and threats of legal action on oil companies drilling in the Falklands. Earlier this year, Argentina vowed to press criminal and civil charges on British oil companies exploring off the Falkland Islands. Rockhopper received a letter, as did Falkland Oil & Gas, Borders & Southern, Desire Petroleum and Argos Resources on April 17, telling them "of their illicit actions and their consequences." Simon Lockett, chief executive of Premier, said in a statement: "Rockhopper has made excellent progress in commercialising the Sea Lion project which offers attractive returns and fits well with Premier's proven operating and development skills." Premier would acquire a 60pc stake in the licence, with Rockhopper owning the remaining 40pc. Shares in Premier rose 3.3pc in early trading to 371p and Rockhopper shares gained 4.5pc to 286.2p.