Rockhopper Exploration plc is preparing a capital raising to fund its 35% share of a second floating production, storage and offloading vessel (FPSO) for the Sea Lion oil project in the Falkland Islands.
Navitas Petroleum LP, the project operator, has exercised an option to acquire the OSX-1 FPSO for approximately $125 million, excluding modernization costs. Navitas will initially hold the vessel through a special purpose vehicle and cover all costs until Rockhopper secures financing for its stake. The transaction is expected to close in September 2026.
The additional FPSO will boost total production capacity by 125,000 barrels of oil per day, with Rockhopper’s share estimated at 43,750 bopd. The vessel will develop the Central Development Area (CDA) of the Sea Lion field, which includes drilling 20 wells in Phase 1 and 18 wells in Phase 2.
Navitas plans to submit the CDA development plan to the Falkland Islands Government and take a Final Investment Decision in the first half of 2028. First oil from CDA Phase 1 is targeted for late 2030. Meanwhile, Phase 1 of the North Development Area remains on track for first production in the first quarter of 2028.
An updated reserves report by Netherland, Sewell & Associates Inc showed Navitas’s discounted cash flow rising about 39% from the February 2026 report, based on a long-term Brent crude price of $76 per barrel. Rockhopper has received expressions of interest from existing and potential new investors to support its share of the OSX-1 acquisition.
The company is evaluating a new ordinary share offering for both new and existing investors, alongside an open offer for current shareholders. Its shares entered a Capital Access Window at 11:45 AM on Sunday, with no specified end date.
