Rockhopper Exploration PLC jumped 90% to 16p after the positive arbitration result 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
Arbitration proceedings began in 2017 over Ombrina Mare in the Adriatic Sea.
Italy refused to grant the company a production concession because it was located 12 miles from the coast of Italy, where exploration and production activities are prohibited.
The panel unanimously ruled that Italy had violated the Energy Charter Treaty. Rockhopper was awarded EUR190mln of compensation. After arbitration fees have been paid, the oil and gas company will retain approximately 80%.
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.‘
