Navitas joins Rockhopper as new operator at Sea Lion

The AIM-traded firm said Navitas Petroleum, through its UK subsidiary, had thus entered the basin with a 65% stake in, and operatorship of, all of Rockhopper's licences.

It said the licences PL3, PL4 and PL5, as well as PL32 and PL33, were now all 35% held by Rockhopper and 65% by Navitas, as the operator.

“We are delighted to welcome Navitas to the North Falkland Basin as operator of the Sea Lion development and wider acreage with all of its associated upside,” said chief executive officer Samuel Moody.

“We also thank both the Falkland Islands government and Harbour for their work on this Transaction and look forward to working with Navitas to bring Sea Lion to fruition.”

Moody said Sea Lion alone was capable of producing more than 120,000 barrels of oil per day, with “significant” upside.

“The proven oil and gas in the Falklands has the potential to form a material part of wider UK energy supply in a relatively short time frame, bringing with it huge potential security of supply and financial benefits for all stakeholders.”

At 1239 BST, shares in Rockhopper Exploration were up 0.7% at 14.1p.

Reporting by Josh White at Sharecast.com.