LONDON (ShareCast) - (Sharecast News) - Rockhopper Exploration said on Friday that it has received the full €31m payout from its annulment insurance linked to the Ombrina Mare arbitration and has agreed amended terms for the disposal of its remaining Italian assets.
The AIM-traded company confirmed the proceeds from the policy, which was arranged to cover the risk of an unsuccessful outcome in Italy's annulment application before the International Centre for Settlement of Investment Disputes.

A new arbitration request had been drafted, and was expected to be submitted in the coming weeks, with costs covered under an existing funding agreement.

Any future recovery from arbitration would be used to reimburse insurers.

Rockhopper said it had also revised its share purchase agreement with Zodiac Energy for the sale of its Italian subsidiary, Rockhopper Civita Limited, which holds all of its Italian assets and liabilities except Ombrina Mare.

Under the amended deal, Zodiac would pay £1 and assume liabilities of up to €4.5m, while Rockhopper would retain royalty interests in two licences, AC19 and Serra San Bernado.

The royalties would be structured as either 10% of revenues from production or 25% of gross proceeds in the event of a licence sale.

Completion remained subject to regulatory approvals in Italy and the Falkland Islands, with the longstop date extended to 31 March 2026.

Following completion, Rockhopper said it would have no remaining Italian licence liabilities, its plug and abandonment liability will be reduced by around $12.6m, and annual cash burn would fall by €0.5m to €0.75m.

"The steps announced today provide us with further strategic and commercial clarity as we continue to focus on progressing the Sea Lion development," said chief executive Samuel Moody.

"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."

At 1125 BST, shares in Rockhopper Exploration were up 4.01% at 77.8p.

Reporting by Josh White for Sharecast.com.

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