Falklands, Rockhopper Exploration refocuses on Sea Lion by disposing of Italian assets
“The combination of the insurance policy and transaction with Zodiac allows us to refocus the Company on Sea Lion,” said CEO Samuel Moody (Pic Rockhopper Exploration)
Rockhopper Exploration plc has made strategic moves to refocus on their Sea Lion development by disposing of Italian assets. The company has put in place an insurance policy to protect shareholders in case the Rockhopper Ombrina Mare Arbitration Award is annulled by the Italian Republic. Additionally, Rockhopper has signed a share purchase agreement with Zodiac Energy Limited to exit their other Italian assets.
The insurance policy ensures that Rockhopper will receive a minimum of €31 million if the Award is annulled. The cost of the policy is €4 million, leaving Rockhopper with a cash balance of approximately US$24 million. The sale agreement with Zodiac involves two installments and includes a retained royalty on two undeveloped licenses.
This strategic move will reduce Rockhopper’s liabilities, annual cash burn, and focus their efforts on advancing the Sea Lion development. CEO Samuel Moody expressed confidence in these decisions, highlighting the benefits of refocusing on Sea Lion.