Rockhopper Exploration plc has confirmed receipt of the full €31 million insurance payout related to the Ombrina Mare ICSID arbitration, strengthening its balance sheet and cash position.
In parallel, the company has signed an amended share purchase agreement (SPA) with Zodiac Energy Limited for the sale of Rockhopper Civita Limited, which holds Rockhopper’s Italian assets (excluding the Ombrina Mare arbitration). While also progressing the disposal of its Italian business as it sharpens its focus on the Sea Lion development in the Falklands.
Falklands Energy Revival: Rockhopper and Borders & Southern Lead the Frontier Push
Key Terms of the Deal
- Purchase Price: £1, with Zodiac assuming up to €4.5 million in liabilities.
- Recapitalisation: Rockhopper will provide evidence of recapitalisation and ensure at least €5.5 million is in Civita’s accounts.
- Royalties Retained: Rockhopper keeps rights over two assets, receiving 10% of revenues or 25% of gross proceeds from any future sale.
- Longstop Date: Extended to 31 March 2026.
Strategic Benefits
Following completion, Rockhopper’s plug & abandonment (P&A) liability will fall by US$12.6 million, while annual cash burn is expected to reduce by €500,000–€750,000.
Samuel Moody, CEO of Rockhopper, commented:
“The steps announced today provide us with further strategic and commercial clarity as we continue to focus on progressing the Sea Lion development. The combination of the insurance and transaction with Zodiac allows us to refocus the Company on Sea Lion by further reducing both short- and long-term costs, reducing risk, and protecting our balance sheet whilst maintaining some potential upside in two Italian licences.”
