Rockhopper Exploration PLC (AIM:RKH) has confirmed the receipt of a €31 million annulment insurance payout, related to the Ombrina Mare arbitration, and also announced the sale of its remaining Italian assets.
It comes as Rockhopper is resharpening its focus to its core assets in the Falklands.
The company noted that the insurance proceeds are repayable if the company makes a financial recovery from a new arbitration case that is expected to be submitted in the coming weeks.
Meanwhile, the asset sales sees Zodiac Energy Limited acquiring the Rockhopper Civita Limited subsidiary for a nominal £1, and it will also assume liabilities of up to €4.5 million.
Rockhopper will, however, retain royalty interests over two exploration licences.
As part of the disposal process, Rockhopper agreed to recapitalise Rockhopper Civita Limited to ensure a minimum €5.5 million in cash and deposits.
"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".