Navitas Petroleum has signed a non-binding memorandum of understanding (MoU) with JHI Associates to acquire a 65% working interest in the PL001 North Falklands Basin Licence.
Eco (Atlantic) Oil & Gas, which holds a 6.6% interest in JHI, announced the agreement. The licence involved in the deal is adjacent to the Sea Lion Development operated by Navitas and located in the Falkland Islands.
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PL001, which covers approximately 1,126km², is at a water depth of around 500m. It holds an estimated 3.1 billion barrels (bbbl) of potential oil resources.
The memorandum outlines that JHI will retain a 35% interest in the licence and continue as the operator.
It includes provisions for Navitas to finance JHI’s share of exploration-related expenses up to a specified limit, with repayments contingent upon the generation of free cash flow from the licence.
Eco Atlantic president and CEO Gil Holzman said: “We are encouraged to see a further strengthening of our relationship with Navitas, this time through our holding in JHI. As part of our Strategic Partnership with Navitas, technical and commercial discussions in relation to our projects in both Guyana and South Africa are continuing and we look forward to keeping the market updated.”
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By GlobalDataA 90-day exclusivity period is part of the MoU, during which JHI will negotiate solely with Navitas about the transaction.
This period may be extended by an additional 30 days if necessary.
Completion of due diligence and obtaining regulatory approvals are among the conditions set forth for finalising binding agreements by May 2026.
Following completion, a joint operating agreement will be executed between the parties.
The licence, initially extended in November 2024 for a second exploration period until December 2026, may be extended for an additional decade, with an obligation for one exploration drilling programme within that time frame.
A seismic survey has been conducted and data reprocessed within the area, although no mandatory work plan is currently required by Falkland Islands authorities.
While no significant immediate investments are planned beyond general fees and future costs, Navitas and JHI intend to develop an exploration drilling strategy for PL001.
The transaction does not ensure binding commitments outside of specified technical provisions during negotiations, which remain ongoing.
Meanwhile, Navitas continues to advance Phase A of the Sea Lion project under Falkland Islands and British Overseas Territory regulations. All necessary approvals are coordinated between local and British governmental entities.
Last month, Navitas Petroleum Development and Production, a UK subsidiary of Navitas, made the final investment decision on the Sea Lion Development, located around 220km north of the Falkland Islands.
Phase one of the project will see significant progress throughout 2026.
This initial phase involves drilling 11 subsea wells connected to a redeployed floating production, storage and offloading vessel. Phase two will introduce an additional 12 wells, which are set to be completed within three years of achieving first oil.
In December 2025, Eco Atlantic also partnered with Navitas, giving the latter exclusive options for substantial stakes in Guyana and South Africa offshore blocks.
