Navitas signs MoU with JHI for 65% stake in North Falklands licence

Navitas Petroleum has signed a non-binding memorandum of knowing (MoU) with JHI Associates to get a 65% moving involvement successful the PL001 North Falklands Basin Licence.

Eco (Atlantic) Oil & Gas, which holds a 6.6% involvement successful JHI, announced the agreement. The licence progressive successful the woody is adjacent to the Sea Lion Development operated by Navitas and located successful the Falkland Islands.

PL001, which covers astir 1,126km², is astatine a h2o extent of astir 500m. It holds an estimated 3.1 cardinal barrels (bbbl) of imaginable lipid resources.

The memorandum outlines that JHI volition clasp a 35% involvement successful the licence and proceed arsenic the operator.

It includes provisions for Navitas to concern JHI’s stock of exploration-related expenses up to a specified limit, with repayments contingent upon the procreation of escaped currency travel from the licence.

Eco Atlantic president and CEO Gil Holzman said: "We are encouraged to spot a further strengthening of our narration with Navitas, this clip done our holding successful JHI. As portion of our Strategic Partnership with Navitas, method and commercialized discussions successful narration to our projects successful some Guyana and South Africa are continuing and we look guardant to keeping the marketplace updated."

A 90-day exclusivity play is portion of the MoU, during which JHI volition negociate solely with Navitas astir the transaction.

This play whitethorn beryllium extended by an further 30 days if necessary.

Completion of owed diligence and obtaining regulatory approvals are among the conditions acceptable distant for finalising binding agreements by May 2026.

Following completion, a associated operating statement volition beryllium executed betwixt the parties.

The licence, initially extended successful November 2024 for a 2nd exploration play until December 2026, whitethorn beryllium extended for an further decade, with an work for 1 exploration drilling programme wrong that clip frame.

A seismic survey has been conducted and information reprocessed wrong the area, though nary mandatory enactment program is presently required by Falkland Islands authorities.

While nary important contiguous investments are planned beyond wide fees and aboriginal costs, Navitas and JHI mean to make an exploration drilling strategy for PL001.

The transaction does not guarantee binding commitments extracurricular of specified method provisions during negotiations, which stay ongoing.

Meanwhile, Navitas continues to beforehand Phase A of the Sea Lion task nether Falkland Islands and British Overseas Territory regulations. All indispensable approvals are coordinated betwixt section and British governmental entities.