18th Oct 2024 12:18
(Alliance News) - Rockhopper Exploration PLC on Friday said it agreed an extension of its licences on the Falkland Islands.
The oil and gas exploration company, with key interests in the Falkland Islands said it agreed to extend all of its North and South Falkland Basin petroleum production licences, following talks with the Falkland Islands government.
The licences will now run until the end of 2026.
Further, on Monday Rockhopper said it put in place an insurance policy to cover the event that Italy succeeds in its attempt to have the Rockhopper Ombrina Mare Arbitration Award annulled.
The insurance policy will ensure that Rockhopper is entitled to at least EUR31 million if Italy has the entire award annulled.
Finally, Rockhopper said it signed a share purchase agreement with Zodiac Energy Ltd to exit its other Italian assets.
The agreement is for the sale of Rockhopper Civita Ltd, which holds all Rockhopper's Italian assets except for the Ombrina Mare Arbitration Award.
Under the deal, which includes all of Rockhopper's Italian assets and liabilities except the Ombrina Mare Arbitration Award, Rockhopper will pay Zodiac EUR3 million under a first instalment, and EUR2.5 million under a second instalment.
Rockhopper Chief Executive Officer Samuel Moody said Monday: "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 policy and transaction with Zodiac allows us to refocus the company on Sea Lion by further reducing both short and long term costs, reducing risk, protecting our balance sheet whilst maintaining some potential upside in two Italian licences."
Sea Lion island is part of the Falkland Islands.
Rockhopper Civita contributed a USD1.3 million loss in 2023.
Rockhopper shares rose 2.6% to 13.24 pence each on Friday afternoon in London.
By Tom Budszus, Alliance News slot editor
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