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Rockhopper receives €19 Million in Ombrina Mare arbitration

Rockhopper Exploration plc (LON: RKH) has announced the receipt of its first payment in the monetisation of its Ombrina Mare Arbitration Award. The company confirmed that all precedent conditions for the transaction, initially revealed on 20 December 2023, have been met.

The oil and gas exploration firm has received €19 million of the €45 million Tranche 1 payment. The remaining €26 million has been allocated to a specialist arbitration funder, which had previously covered all costs related to the arbitration process. This payment fully discharges Rockhopper’s liabilities under its 2017 litigation funding agreement.

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Rockhopper stands to receive additional payments from Tranches 2 and 3 of the Award, contingent on a successful annulment outcome. The company also noted that success fees of approximately €4 million are owed to its legal representatives if the claim is won and Italy being required to pay damages of €25 million or more.

Following this initial payment, Rockhopper’s cash balance has risen to approximately $27 million. This influx of funds significantly bolsters the company’s financial position, potentially providing more flexibility for future operations and investments.

“We are delighted to have received the Tranche 1 payment under the Ombrina Mare monetisation agreement,” said Samuel Moody, CEO.

“This cash gives us the strongest balance sheet we have had for a number of years, and we remain confident in the merits of our legal case as we await the decision of the Ad Hoc Panel on the annulment request from the Italian Republic.”

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