REG - Rockhopper Exp plc - Unsuccessful Arbitration Annulment Outcome

Rockhopper ExplorationAnnouncement

03/06/2025 09:15

For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20250603:nRSC2097La&default-theme=true

RNS Number : 2097L  Rockhopper Exploration plc  03 June 2025

The information contained within this Announcement is deemed by Rockhopper
Exploration plc to constitute inside information as stipulated under the
Market Abuse Regulation (EU) No. 596/2014 as it forms part of UK law by virtue
of the European Union (Withdrawal) Act 2018 ("MAR").

 

 

Rockhopper Exploration plc

 ("Rockhopper" or the "Company")

 

Unsuccessful Arbitration Annulment Outcome

 

Rockhopper Exploration plc (AIM: RKH), the oil and gas company with key
interests in the North Falkland Basin, provides the following update on
its International Centre for Settlement of Investment Disputes ("ICSID")
arbitration with the Republic of Italy.

 

Italy has succeeded in having the Award annulled.  Under the terms of the
Monetisation Agreement announced on 20 December 2023, the Tranche 2 payment
will now be €0.

 

Rockhopper now intends to make a claim under the terms of an insurance policy
announced on 14 October 2024, additional details of which are set out below.

 

The insurance policy ensures that, in the event that the Italian Republic
succeeds in having the entire Award annulled or in the event of partial
annulment, the combination of the Tranche 2 payment and the insurance payout
shall entitle Rockhopper to a total no less than €31 million.

 

Rockhopper is in discussions with the specialist funder of the Monetisation
Agreement regarding possible next steps.

 

Background

 

As announced on 24 August 2022, the arbitration panel unanimously held
that Italy had breached its obligations under the Energy Charter Treaty (the
"Award") entitling Rockhopper to compensation of €190 million plus
interest at EURIBOR + 4%, compounded annually from 29 January 2016 until time
of payment (except the four-month period immediately following the date of the
Award).

 

On 28 October 2022, Italy submitted an application to the ICSID seeking to
annul the Award under Article 52 of the ICSID Convention.

 

On 14 October 2024, Rockhopper announced it had decided, in line with normal
market practice, that insuring to protect shareholders against loss resulting
from an annulment of the Award was the most prudent course of action.

 

The insurance policy ensures that, in the event that the Italian Republic
succeeds in having the entire Award annulled or in the event of partial
annulment, the combination of the Tranche 2 payment and the insurance payout
shall entitle Rockhopper to a total no less than €31 million.

 

The policy was placed via an FCA-registered specialist insurance brokerage.
The policy was underwritten by a specialist underwriting agency and subscribed
to by a number of A-rated insurance carriers and syndicates.

 

Sam Moody, Chief Executive Officer of Rockhopper Exploration, commented:

 

"Obviously we are disappointed with this outcome.  Having already received
the Tranche 1 monetisation payment our balance sheet remains robust and we
intend to claim under the insurance policy.  With a lead lending bank
appointed, we now move to finalising the funding for Sea Lion FID which has
the potential to unlock very significant value as confirmed in our recently
published resource evaluation."

 

 

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/James Asensio/Charlie Hammond

Tel. +44 (0) 20 7523 8000

 

Peel Hunt LLP (Joint Broker)

Richard Crichton/Georgia Langoulant

Tel. +44 (0) 20 7418 8900

 

Vigo Consulting

Patrick d'Ancona/Ben Simons/Fiona Hetherington

Tel. +44 (0) 20 7390 0234

 

 

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  MSCFJMPTMTBMMJA