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

Core Viewpoint - Navitas Petroleum has entered a non-binding memorandum of understanding with JHI Associates to acquire a 65% working interest in the PL001 North Falklands Basin Licence, which is adjacent to the Sea Lion Development operated by Navitas in the Falkland Islands [1][2]. Group 1: Transaction Details - The PL001 licence covers approximately 1,126 km² and is located at a water depth of around 500 meters, with an estimated 3.1 billion barrels of potential oil resources [2]. - JHI will retain a 35% interest in the licence and will continue as the operator, while Navitas will finance JHI's share of exploration-related expenses up to a specified limit, with repayments contingent on free cash flow generation from the licence [2][3]. - A 90-day exclusivity period is included in the MoU, during which JHI will negotiate solely with Navitas regarding the transaction, with the possibility of a 30-day extension if necessary [3][4]. Group 2: Conditions and Future Plans - Completion of due diligence and obtaining regulatory approvals are required to finalize binding agreements by May 2026, after which a joint operating agreement will be executed [4]. - The licence may be extended for an additional decade, with an obligation for one exploration drilling programme within that timeframe, although no mandatory work plan is currently required by Falkland Islands authorities [5]. - Navitas and JHI plan to develop an exploration drilling strategy for PL001, although no significant immediate investments are planned beyond general fees and future costs [6]. Group 3: Ongoing Operations - Navitas continues to advance Phase A of the Sea Lion project under the regulations of the Falkland Islands and British Overseas Territory, with all necessary approvals coordinated between local and British governmental entities [7].