MercoPress. South Atlantic News Agency

Falklands Government extends Rockhopper's Petroleum Production Licenses to December 2026

Rockhopper CEO Sam Moody commented: ”We are pleased to have extended the licenses, enabling us to continue progressing our work in the Falkland Islands.”

Rockhopper Exploration plc (AIM: RKH), the oil and gas company with key interests in the North Falkland Basin announced that, following discussions with the Falkland Islands Government, FIG has agreed to extend all of the Company’s North and South Falkland Basin Petroleum Production Licenses meaning that the licenses will now run until the 31 December 2026.

 Sam Moody, CEO of Rockhopper, commented: ”We are pleased to have extended the licenses, enabling us to continue progressing our work in the Falkland Islands.”

This month also Rockhopper Exploration also announced it had put in place an insurance policy to cover the event that the Italian Republic succeeds in its attempt to have the Rockhopper Ombrina Mare Arbitration Award annulled and has also signed a share purchase agreement with Zodiac Energy Limited to exit its other Italian assets.

At the time the company said even Rockhopper and advisors remain confident of its position it has decided, in line with normal market practice, that insuring to protect shareholders against loss resulting from an annulment of the Award to be the most prudent course of action.

The insurance policy will ensure that, in the event that the Italian Republic succeeds in having the entire Award annulled or in the event of partial annulment, the combination of the Tranche 2 payment and the insurance payout shall entitle Rockhopper to a total no less than €31 million.

The policy has been placed via a FCA-registered specialist insurance brokerage. The policy has been underwritten by a specialist underwriting agency and subscribed to by a number of A-rated insurance carriers and syndicates.

The total cost of the policy, including applicable taxes and underwriting fees, is €4 million. Following placing the policy, Rockhopper’s cash balance will be approximately US$ 24 million.