MercoPress. South Atlantic News Agency

Falklands Rockhopper Exploration collects first tranche of Ombrina Mare payment

”We are delighted to have received the tranche one payment under the Ombrina Mare monetization agreement[, said CEO Samuel Moody

Oil company Rockhopper Exploration PLC, with key interests in the Falkland Islands, on Friday, announced it had received the first tranche payment in relation to the monetization of its Ombrina Mare arbitration award, according to a report from Alliance News.

It has received EUR19 million of the EUR45 million tranche one payment, after entering a litigation funding agreement in 2017, under which all costs from commencement to rendering were paid on its behalf.

That agreement entitles the original arbitration funder to a proportion of any proceeds from the award. The balance of EUR26 million has gone to the funder in order to discharge Rockhopper of its liabilities.

Tranches two and three remain payable to Rockhopper upon a successful annulment outcome. Success fees of EUR4 million are owed to Rockhopper's legal representatives if Rockhopper win the claim.

“We are delighted to have received the tranche one payment under the Ombrina Mare monetization agreement. This cash gives us the strongest balance sheet we have had for a number of years, and we remain confident in the merits of our legal case as we await the decision of the Ad Hoc Panel on the annulment request from the Italian Republic,” said Chief Executive Officer Samuel Moody.

Shares in Rockhopper Exploration were trading 1.0% higher at 15.10 pence each in London on Friday following the announcement.