Navitas makes move to strengthen offshore Falklands E&P position

Earlier this week, Navitas Petroleum signed a non-binding memorandum of agreement with JHI Associates to farm into the offshore PL001 in the North Falklands Basin.

The location is close to the Navitas-operated Sea Lion oil and gas development.

Eco (Atlantic) Oil & Gas, which has a 6.6% stake in JHI, said PL001 spans a 1,126-sq-km area in 500 m water depth, with up to 3.1 Bbbl of prospective resources. 

These include multiple Lower Cretaceous structures thought to be analogous to Sea Lion.

In early December of last year, Eco and Navitas entered a binding agreement that enables Navitas to farm in to the Orinduik Block offshore Guyana and Block 1 CBK offshore South Africa.

Upon completion, Navitas would assume an 80% operated interest in Orinduik Block, which could result in drilling of a new exploration well or appraising the heavy oil Jethro-1 and Joe-1 drilled previously by Tullow Oil for a potential development.

As for Block 1 CBK, terms allow for Navitas to become operator with an interest of up to 47.5%, subject to regulatory and government approvals. In addition, Navitas may opt to acquire up to 25% of Eco’s interests in the PEL97, PEL99 and PEL100 licenses offshore Namibia and 25% in Azinam, which is present in Block 3B/4B offshore South Africa.

In addition, the two companies also shook hands on a future asset option, under which Navitas could join new ventures and acquisitions identified by Eco on a 50:50 basis.