Exploration activity in the Falkland Islands is intensifying following a new farm-in agreement. Navitas Petroleum has signed a non-binding memorandum of agreement to acquire a majority stake in the PL001 licence, located in the North Falklands basin directly adjacent to the Sea Lion oil field development area.

Transaction Details and Strategic Rationale

The agreement is with JHI Associates, the licence holder, in which Eco Atlantic Oil & Gas holds a 6.6% interest. Navitas would acquire a 65% working interest in the licence, significantly expanding its position in the South Atlantic. The block's immediate proximity to the Navitas-operated Sea Lion field is a key strategic advantage, offering potential synergies in shared geological understanding, infrastructure planning, and future development options.

Licence Potential and Geological Context

The PL001 licence covers approximately 1,126 square kilometres in water depths around 500 metres. It contains multiple exploration prospects and leads, with best-estimate prospective resources of approximately 3.1 billion barrels. Significantly, several identified targets are Lower Cretaceous prospects, which are geologically analogous to the hydrocarbon accumulation found at the Sea Lion field, enhancing their prospectivity.

Broader Partnerships and Next Steps

The deal further strengthens the existing relationship between Navitas and Eco Atlantic. Beyond the Falklands, the two companies are continuing technical and commercial discussions regarding their partnered projects in Guyana and South Africa. The proposed farm-in remains subject to further negotiations and necessary regulatory approvals. If completed, it would allow Navitas to build on the momentum from the sanctioned Sea Lion development—which targets first oil in 2028—and advance exploration in this prospective yet underdeveloped offshore basin.