TOPIC: FARM-OUT INTEREST AND M&A Question – What is your understanding of “earn-in” structures in UK farmout agreement? Identify the reasons that would invite you to advise such a structuring to the parties to a farmout agreement. INFO – Another form of industry-specific contract used to transfer asset interests is the farm-out agreement. This arrangement serves multiple purposes and helps to combine the transfer of a portion of upstream interest with a financial arrangement, while the parties share the risk of an exploration and production project. There are multiple ways of structuring the transfer of interest under a farm-out agreement. The parties are also free to structure the consideration payable as part of the transfer
