REG - Rockhopper Exp plc - Successful arbitration outcome

Rockhopper ExplorationAnnouncement

24/08/2022 12:15

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20220824:nRSX1023Xa&default-theme=true

RNS Number : 1023X  Rockhopper Exploration plc  24 August 2022

24 August 2022

 

Rockhopper Exploration plc

 

("Rockhopper" or the "Company")

 

Successful arbitration outcome

 

 

Rockhopper Exploration plc (AIM: RKH), the oil & gas company with key
assets in the North Falkland Basin, is pleased to provide the following update
on its ICSID arbitration with the Republic of Italy:

 

·    Successful arbitration award

·    Compensation of EUR 190mm

·    Plus interest at EURIBOR + 4%, compounded annually from 29 January
2016 until time of payment

 

The arbitration panel unanimously held that Italy had breached its obligations
under the Energy Charter Treaty entitling Rockhopper to compensation. The
award is final and binding on the parties. Italy has 120 days to apply for an
annulment of the award, which can only be annulled in limited circumstances.
Under a legal agreement with the Falkland Island Government Rockhopper is
prevented from making any form of distribution.

 

All costs associated with the arbitration were funded on a non-recourse ("no
win - no fee") basis from a specialist arbitration funder. After payments due
to the arbitration funder, Rockhopper expects to retain approximately 80%  of
the award (assuming full recovery of the award). Further analysis is required
to establish the tax treatment on any payments related to the award.

 

Samuel Moody, CEO commented

 

'We are delighted to have won our case. A huge amount of work has been
involved since we acquired Mediterranean Oil & Gas Plc in 2014 and
commenced the Arbitration in 2017.  I would like to pay tribute to our team
for their dedication over such a long period.  We will update the market in
due course once we have been able to analyse fully the results of the
arbitration and its full, very positive financial implications for Rockhopper.
This positive milestone builds on our recent transaction with Navitas and
while work still needs to be done on Sea Lion, we believe after collection of
the award, it will make a material contribution towards our share of the
development costs.'

 

 

Enquiries:

 

Rockhopper Exploration plc

Sam Moody - Chief Executive Officer

Tel. +44 (0) 20 7390 0234 (via Vigo Consulting)

 

Canaccord Genuity Limited (NOMAD and Joint Broker)

Henry Fitzgerald-O'Connor / Gordon Hamilton

Tel. +44 (0) 20 7523 8000

 

Peel Hunt LLP (Joint Broker)

Richard Crichton

Tel. +44 (0) 20 7418 8900

 

Vigo Consulting

Patrick d'Ancona / Ben Simons / Kendall Hill

Tel. +44 (0) 20 7390 0234

 

The information contained within this announcement is deemed by the Company to
constitute inside information as stipulated under the Market Abuse Regulations
(EU) No. 596/2014 ("MAR").

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  UPDPPUBARUPPGUC