Rockhopper Exploration plc Commencement of international arbitration (2604A)
23 March 2017 - 6:01PM
UK Regulatory
TIDMRKH
RNS Number : 2604A
Rockhopper Exploration plc
23 March 2017
23 March 2017
Rockhopper Exploration plc
("Rockhopper" or the "Company")
Commencement of international arbitration against Republic of
Italy
Rockhopper Exploration plc (AIM: RKH), the oil and gas company
with key interests in the North Falkland Basin and the Greater
Mediterranean region, announces that it has commenced international
arbitration proceedings against the Republic of Italy in relation
to the Ombrina Mare project.
Following the decision in February 2016 by the Ministry of
Economic Development not to award the Company a Production
Concession covering the Ombrina Mare field, the Company, with its
legal advisers, has considered its options with regard to obtaining
damages and compensation from the Republic of Italy for breaching
the Energy Charter Treaty ("ECT").
By way of background, the ECT entered into legal force in April
1998 and is designed to provide a stable platform for energy sector
investments. The Republic of Italy, as a member of the European
Union, was a founding signatory to the ECT.
Based on legal and expert opinions, Rockhopper has been advised
that it has strong prospects of recovering very significant
monetary damages as a result of the Republic of Italy's breaches of
the ECT. Damages would be sought on the basis of lost profits.
In addition, the Company has secured non-recourse funding for
the arbitration from a funder that specialises in financing
commercial litigation and arbitration claims. In the event of
success (with an award above a nominal threshold) Rockhopper
retains a very material proportion of any award.
Sam Moody, CEO of Rockhopper, commented:
"Whilst we had hoped to avoid arbitration, we are extremely
disappointed that it has proved to be necessary in order to protect
our investment in the Ombrina Mare project. While it may take some
time to produce a result, and there is no certainty of success,
Rockhopper is taking all necessary steps to protect its
shareholders' interests at no extra cost to the Company."
For further information, please contact:
Rockhopper Exploration plc
Tel: (via Vigo Communications) - 020 7830 9700
Sam Moody - Chief Executive
Fiona MacAulay - Chief Operating Officer
Stewart MacDonald - Chief Financial Officer
Canaccord Genuity Limited (NOMAD and Joint Broker)
Tel: 020 7523 8000
Henry Fitzgerald-O'Connor
Vigo Communications
Tel: 020 7830 9700
Patrick d'Ancona
Ben Simons
Further information
This announcement is for information only and is not intended to
and does not constitute, or form part of any offer to sell or
invitation to purchase or subscribe for any securities, or any
solicitation of any vote or approval in any jurisdiction pursuant
to the Acquisition or otherwise. This announcement does not
constitute a prospectus or a prospectus equivalent document.
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulations (EU) No. 596/2014 ("MAR").
This information is provided by RNS
The company news service from the London Stock Exchange
END
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