I will stay invested21 Nov 2024 11:44
The recent updates on the Sea Lion development progress have included an updated development plan to align with Navitas Petroleum LP’ reservoir models, leading to an 11% increase in certified resources across the entire North Falkland Basin portfolio. According to the 2024 Netherland Sewell & Associates (NSAI) Independent Report, the certified gross 2C resources in the overall North Falkland Basin have increased from 712 MMbbls to 791 MMbbls. Navitas has identified suitable and available existing floating production storage and offloading (FPSO) vessels and is actively working with leading industry vendors to secure all long lead equipment, with the goal of reaching the Sea Lion Phase 1 Final Investment Decision (FID) in 2024 and achieving first oil by the end of 2026. The Sea Lion development plan still comprises 23 wells drilled in two phases, showing a 16% increase in gross 2C resources from 269 MMbbls to 312 MMbbls out of the overall 791 MMbbls certified discovered resources in the basin. The initial gross capex required for first oil has been reduced from $1.3 billion to $1.2 billion, with a capex of approximately $8 per barrel. The opex across the life of the field has been reduced to under $17 per barrel. The break-even price is now below $25 per barrel, compared to the previously reported $27. An updated development plan has been submitted to the Falkland Islands Government, and it is anticipated that an updated Environmental Impact Assessment will be submitted during the first quarter of this year. The Sea Lion field is operated by Navitas with a 65% interest, in partnership with Rockhopper Exploration plc, which holds a 35% interest.