navitas petroleum

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Navitas Petroleum

Capital Market Presentation

January 2019

This presentation was prepared by Navitas Petroleum Limited Partnership (“Navitas” or the “Partnership”).This presentation does not purport to be comprehensive or to include any and all information that may be relevant in connection with the making of adecision to invest in the securities of the Partnership or of companies held thereby. No explicit or implicit representation or undertaking are made withrespect to the accuracy or completeness of any information included herein. In particular, no representation or undertaking are made with respect to thereasonableness and/or materialization of any forecast. For a full picture of the Partnership’s business and the risks entailed thereby, see the offeringprospectus released by the Partnership and any and all immediate and periodic reports filed by the Partnership with the Israel Securities Authority and theTel Aviv Stock Exchange Ltd., including warnings pertaining to forward-looking information, as this term is defined in the Securities Law, 5728-1968,included therein.The forward-looking information in the presentation may not materialize, in whole or in part, or may materialize in a manner materially different to theexpectation, and may be affected by various factors that cannot be assessed in advance. Furthermore, the timetables for the performance of variousactions in the context of the petroleum assets in which the Partnership has working interests, that are included in this presentation, and the cost thereof,are estimated and include forward-looking information that is not certain, is based on merely partial information that is available to the General Partner onthe date of the presentation, and includes assessments of the General Partner based on the information available thereto on the date hereof, which maychange based on the progress of the activities, the date of actual performance thereof and the resultant findings, as well as numerous external influencesand/or restrictions such as changes in the condition of the petroleum assets, a delay in the receipt of approvals and permits required for the performanceof the various activities, dependence on contractors, etc. Therefore, the actions actually performed and the dates thereof may differ materially from theassessed or implied targets. Furthermore, the data regarding the quantity of recoverable oil barrels from each one of the Partnership’s assets alsoconstitutes forward-looking information, that is based on reports received by the Partnership from an independent reserves evaluator, which may beupdated as further information accumulates and/or as a result of a range of factors involved in oil and natural gas production projects.For the avoidance of doubt, it is clarified that the Partnership does not undertake to update and/or modify the information included in the presentation toreflect subsequent events and/or circumstances, other than as required by law. The Partnership’s business strategy described in the presentation is correctas of the date hereof, and may change in the future, inter alia in consideration of the market conditions and the decisions of the Board of Directors of thePartnership’s General Partner.The presentation also includes public and statistical publications released by various authorities and bodies, the content of which has not beenindependently checked by the Partnership, and for the veracity of which the Partnership is consequently not responsible.It is further clarified that a considerable part of the information provided herein is taken and/or derived from the Partnership’s reports, although presentedin a concise and/or graphic and/or brief manner, and therefore this presentation is not a substitute for inspection of the Partnership’s reports, but rather asupplementary source of information. In any event of discrepancy between this presentation and the prospectus and/or reports released by thePartnership, such prospectus and/or reports shall prevail.This presentation is not an offer and/or invitation to purchase securities of the Partnership. This presentation and anything included herein are not a basisfor any contract or undertaking, and should not be relied upon in such context. The information provided in the presentation is not a basis for the makingof any investment decision, is not a recommendation or an opinion, and is no substitute for the discretion of a potential investor.

הגבלת אחריות

2

Disclaimer

Israel

USA

Canada

Houston

3

Navitas Petroleum PartnershipNavitas Petroleum PartnershipBusiness Card

▪ A public oil and gas partnership operating in the USA and Canada

▪ Navitas has proven professional, commercial and financial capabilities

▪ Navitas Group has raised approx. US$280 MM (in equity and debt) since the beginning of 2017

▪ Navitas’ key assets –

▪ Buckskin –

▪ 515 mmboe (2P+2C, gross)

▪ Fully funded development plan

▪ First oil – July 2019

▪ Shenandoah –

▪ 281 mmboe (2C, gross)

▪ SOP approved

▪ JV partners making progress in the FEED stage

▪ Exploration –

▪ Canada – approx. 2,200 sqkm license holding a

1.2 billion boe prospect

▪ USA – 10 GoM, USA, exploration licenses

▪ Strategic alliances with industry leaders – LLOG Exploration, Blackstone Group, Warburg Pincus,

Riverstone, Equinor (Statoil) and others

ShenandoahA GAME CHANGER

שותפים חזקים

Value for Navitas1

(NPV12, net)

Resources1

(2C, net)

US$425 MM 65 mmboe

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▪ Cash flow based on the development outline of the project operator – LLOG Exploration

▪ Joint development of Shenandoah and Shenandoah South (North Yucatan)

▪ Project is at the FEED stage

▪ First Oil expected at 2nd half of 2023

▪ Production rate (2C) – expected at approx. 70,000 boe/d

1. According to the NSAI report of December 11, 2018, Resources are presented in BOE, Barrels of Oil Equivalent, and assuming a ratio of gas units to oil barrels of 6MCF = BOE. Th cashflow is discounted at 12% and net of tax and royalties to third parties and to the GP.

Activity Update2018 drilling planThe Project is Underway!A massive growth engine

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March-April 2018▪ LLOG appointed as

operator and files SOP ▪ Navitas wins Shenandoah

in Cobalt’s bid

Is there a way to

save the asset?

February 2018▪ Navitas puts together

integrated transaction with Venari, Beacon and LLOG

December 2017▪ Cobalt enters

Chapter 11

January 2018▪ Cobalt data

room opens

April 2018▪ Cobalt

assets bid

April 2018Licenses expire

NSAI Report –US$425 MM

(NPV12, net)

2009-2017▪ $1.7 billion invested

in the asset

September 2018 December 2018

Licenses revoked back

to government

SOP plan filed

Activity Update2018 drilling plan

How did Navitas acquire Shenandoah?Thinking outside the box and seizing the opportunity

SOP plan approved

Licenses extended

23.1%Navitas Working Interest

√Discovery

√Appraised

8Number of wells drilled

OilOil/Gas

1,700 metersWater depth

Approx. US$1.7 BNInvestments to date

281 mmobeResources (2C, gross)

65 mmboeResources (2C, net)

$425 millionDCF Value (NPV12, net)

27.1%

23.1%18.8%

11.2%

5.9%13.9%

Strong partners – Shenandoah South (Yucatan)

30.95%

23.1%

30.0%

15.95%

Strong partners – Shenandoah

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Activity Update2018 drilling planShenandoah ProjectProject ID (including Shenandoah South)

First Pro

du

ction

FEED

Drilling

Completions

Subsea facilities

Subsea pipelines

Production platform

202320222021202020192018

Delta House production platform

Expected timeline and key milestone to first production

▪ The development scheme includes initial production from 4 wells (out

of a total of 8 wells), manufacturing and installation of subsea

facilities, pipelines and a designated production platform

▪ The designated platform will have a production capacity of over

80,000 boe/d and is based on a proven regional-hub production

model, which LLOG is successfully implementing in the Delta House,

Who-Dat and Khaleesi & Mormont projects

8The information presented in this slide constitutes forward-looking information, as defined in the Israeli Securities Law, 5728-1968. In this regard, see Slide 2.

Activity Update2018 drilling planShenandoah ProjectA massive growth engine!

-7 -7-17

-75-60

191

155 161179

213

165

120

85

58

-100

-50

0

50

100

150

200

250

2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032

US$

MM

Year

Estimated first production

Cash flow forecast (net)

The forecast does not include potential revenue from utilization of the production platform – PHA fees

9The figures in this report are taken from an immediate report released by the Partnership on December 11, 2018, to which the NSAI report is attached.

Activity Update2018 drilling planShenandoah ProjectA massive growth engine!

10Illustration slide, demonstrating the potential of Shenandoah as a regional production Hub.

Designated production platform –

regional production hub

Shenandoahproduction platform

MONUMENT

GSA – Greater Shenandoah Area(tie-back potential – 20 miles radius)

Shenandoah North and South(joint development)

MONTAUKTHURINGER


Shenandoah as a hub in the GSA (Greater Shenandoah Area)

BuckskinFirst Oil – 07/19

Info

7.5%Navitas Working Interest

√Discovery

√Appraised

√FID

OilOil/Gas

1,993 metersWater depth

WilcoxProducing sands

515 mmboeReserves1 (2P+2C, gross)

$143 millionDCF Value1 (Buckskin north only, NPV10, net)

July 2019Expected first production

1. For details on the above figures see the Partnership’s 2017 yearly report.

Production via existingLucius SPAR

2 producing wells

Existing production platform - Lucius

Industry leading partners

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Tie-back pipeline –

only 6 miles

Activity Update2018 drilling planBuckskin Project – nearing IPNo further funds required until first production

Bucksin development plan - illustration

▪ Producers wells successfully drilled and completed, including successful flow tests – which produced oilfrom all target sands

▪ The project is progressing on-budget. To date, approx. 70% of the DP approved budget, amounting toUS$541 MM, have been deployed

▪ Buckskin development is on schedule, as per the approved development plan. The project is currently atthe phase of implementing the necessary modifications to the Lucius SPAR production platform, which isoperated by Anadarko, as well as installing the required subsea facilities

▪ Expected OPEX for flowing barrel is US$ 15

▪ Development plan progress –

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Activity Update2018 drilling planBuckskin DP progress updateDevelopment Plan advancing on schedule – first oil due in July 2019

Financial closing for DP

budget

07/2017

First Production

07/2019

Order and procurement of

production platform equipmentCompletions of

development wells

Commence drilling of

production wells

Connect to production platform

and initiate productionOrder and procurement

of subsea facilities

Drilling development wells

Value creating events along development of the Buckskin project

Modification of production platform and subsea facilities installation

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Activity Update2018 drilling planBuckskin DP progress updateGoM ”record-breaking” Wilcox development wells

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Activity Update2018 drilling planBuckskin DP progress updateLucius SPAR modification progressing on schedule

Empire State Building (NYC)

381 meters

Buckskin sand column height

415 meters

16For illustration purposes only. The information about the height of Buckskin sand column and the area of the Buckskin reservoir are according to information received from LLOG Exploration, the projectoperator.

Activity Update2018 drilling planBuckskin oil discoveryOne of US Gulf of Mexico’s largest oil discoveries

Area of Manhattan

59 sq. km

Buckskin reservoir area

111 sq. km

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Buckskin reservoir structure (illustration)

Buckskin North

255 mmboeUS$143 MM

Buckskin South

260 mmboe

Huge potential – development of Buckskin South (illustration)

▪ Stage 1A – upon first production from the two producing wells, Stage 1A of the development plan shall be

successfully completed

▪ Stage 1B – post reviewing the information received from the producing wells, the JV partners will prepare to

drill a third producing well, as part of the project development advancement

▪ Buckskin South – following the good results of Stage 1A, the JV partners have commenced a review of the

integration of the Southern part in the project development scheme

Stage 1B

Development of Buckskin North

Buckskin South

Activity Update2018 drilling planBuckskin – future developmentBuckskin South – huge potential for further development

Exploration

Block 7, Canada

▪ Navitas (30%) led the winning bid together with Delek Group (70%) of Block 7, consisting of 2,000 sq.km located in the West

Orphan basin, offshore East Canada. The license is valid until 2022, with an option for extension by another 3 years

▪ The area is considered highly attractive and is one of the new

most active global exploration basins

▪ In the latest licensing round in the area, held this year, 4

licenses were granted, in consideration for a substantial

amount of approx. CA$ 1.3 BN

▪ Navitas and Delek won Block 7 in consideration for an

undertaking for activity in the sum of CA$ 48 MM (a

guarantee was given for 25% of such amount only)

▪ Navitas acquired 2D seismic data for the main prospect area.

After processing and interpreting the data, Navitas mapped

out a prospect of approx. 400 sq.km with potential for 1.4

billion boe1

▪ BP is expected to drill an exploration well close to the Navitas

block in as early as 2020. The well results are expected to have a significant de-risking impact on the Block 7 prospect

US licenses

▪ 10 licenses in the Gulf of Mexico, US – low risk exploration prospects with low cost and fast timeline to production

191. Outofwhich 1.2 billionoilbarrels, for100% oftheprospect,accordingtotheNSAIreport attached tothePartnership’s2017 yearlyreport.


New YorkUSAHouston

CanadaSt. JohnExploration

Significant upside potential

St. John

New York

Montreal

Block 3BP

Noble Energy Hess

Block 4BP

Noble EnergyHess

Block 8BP

Noble EnergyHess

Canada

Block 7

Navitas

Delek Group

Key Financials

21

ח"מיליון ש60

Pre-IPO offering of participation units

Stock price: ILS 6.03

Private Placement

January-March 2017


Buckskin non-recourse project development bonds

Series A, in US$, maturity 6/2021, 7.75%

Series B, in US$, maturity 7/2021, 7.75%

Tel Aviv Stock ExchangeJuly 2017


IPO - offering of participation units


Tel Aviv Stock Exchange

September 2017


Offering of participation units and warrants for P.U.


Tel Aviv Stock Exchange

July 2018


Buckskin non-recourse project development bonds (expansion)

Series A, in US$, maturity 6/2021, 7.75%

Series B, in US$, maturity 7/2021, 7.75%

Tel Aviv Stock ExchangeDecember 2017


Navitas Petroleum corporate bonds and warrants

Series A, in ILS, maturity 6/2022, 8.4%

Tel Aviv Stock ExchangeJune 2018

US$6 MM US$16 MM US$17 MM

US$130 MMUS$70 MMUS$21 MM


Activity in the Israeli Capital MarketOfferings of stock and bonds

Navitas’ share in discovered resources amounts to 127 mmboe

Navitas Reserves and Contingent Resources

19

19

65

24

0

20

40

60

80

100

120

140

2P+2C

MM

BO

E

בקסקין צפון בקסקין דרום שננדואה GC82

127

22The datainthisslideare inaccordancewithNSAIreports attached tothePartnership’speriodicreport for2017 orNSAIreports attached toimmediate reportsofthePartnership.

Navitas proven discoveriesהגבלת אחריותReserves and Contingent Resources

ShenandoahBuckskin SouthBuckskin North GC82

▪ In June 2018, Navitas raised approx. US$ 21 MM through Partnership-level Series A bonds (corporate bonds)

▪ The series is secured by a pledge on the expected surpluses from the Buckskin project1

▪ Illustration of Buckskin project cash flow until payment of the bond Series A –

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US$36 MMFCF until 06/21

US$16 MMFCF 07/21-06/22

Barrel price US$50

~US$100 million

Buckskin Refi

1. As defined in the deed of trust. The data presented in this slide refer to Navitas’ share in the cash flow discounted in a rate of 10% according to the 2P category in accordance with the applicable NSAI reports.

Balance

Project bonds

Bond balance US$41 MM

Corporate bonds

Bond balance US$21 MM

הגבלת אחריות

Barrel price US$60

~US$140 million

Buckskin Refi

US$21 MMFCF 07/21-06/22

US$47 MMFCF until 06/21

Navitas corporate bondsSecured by a full pledge on Buckskin project surplus revenues

The Buckskin Financing A bond yield was adjusted to ILS yield using an assumption of hedge increases of approx. 2.6%.

An attractive arbitrage for Navitas corporate bond secured by a full pledge over the Buckskin project surplus revenue

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0

2

4

6

8

10

12

14

June-18July-18August-18September-18October-18November-18

Yield

perce

ntage

'תשואה שקלית מותאמת בקסקין מימון א 'תשואה שקלית פטרוליום א

~8% arbitrage ~5%

arbitrage

Navitas traded bonds yields

June 18’July 18’Aug 18’Sep 18’Oct 18’Nov 18’

Navitas corporate bonds attractive arbitrageהגבלת אחריותBonds Secured by a full pledge on Buckskin project surplus revenues

Navitas corporate bondBuckskin project bond

תחילת הפקה

בקסקין

25

תחילת הפקה

בקסקין

Shenandoah first production

H2/2023

170

216

(78)

Shenandoah cash flow

External sources

Buckskin

first production

07/2019

(75)

(17)(7)(7)

(25)

Shenandoah development investments

2019 2020 2021 2022 2023 2024

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The cash flow figures are in US$ MM and are based on NSAI reports for the Buckskin and Shenandoah projects.


Ideal cash flow timing – Buckskin/ShenandoahBuckskin and Shenandoah – ideal timing between first oil and

development investments

1. Shenandoah project financing2. Buckskin project Refi3. Other Navitas sources

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Buckskin NorthNPV10

US$143 MM1

Buckskin South

Navitas Buckskin USFinancial asset, net

US$5 MM3

NVTS Partnership

Net debt, SoloUS$(17) MM4

ShenandoahNPV12

US$425 MM2

Exploration assets

(cost)

US$9 MM5

Buckskin

Net Debt

Shenandoah

Exploration assets

The slide is for illustration purposes only and does not reflect the value of the Partnership.

1. According to the cash flows included in the NSAI report of March 7, 2018, attached to the Partnership’s 2017 yearly report. | 2. According to the cash flows included in the NSAI report of December 11, 2018 | 3. According to the Partnership’s 2017 yearly report | 4. According to the Partnership’s Q3/2018 financial statements, for details see Q3/2018 Report | 5. According to the Partnership’s Q3/2018 financial statements.

Activity Update2018 drilling planNavitas Petroleum PartnershipAssets breakdown

What next?Moving full steam ahead!

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Navitas has boosted its technical capabilities at its Houston office, and has recently recruited –

▪ Steve Gallon (COO) – Steve worked as engineer for Industry leading companies and in his

last position acted as manager of the “Tamar” natural gas project at Noble Energy

▪ Tom Nguyen (Landam) – Tom served as an attorney and Landman in several oil and gas

companies, including Chevron

Enhancing Technical Capabilities

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▪ Successful partnership with LLOG

and other JV partners

▪ Strengthening of Navitas’ status

and reputation in the market

▪ Current window of opportunities

Access to attractive

deals in a

“buyer’s market”

Attractive Deal-Flow Generationהעצמת היכולות המקצועיות

Former and current partners New partners of the past six months

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Continued value creation for Navitas investors

Deal FlowGeneration

Creative Thinking and

Agility

Reputation and Professionalism

Activity Update2018 drilling planNavitas Comparative Advantage

Thank you!

navitas petroleum

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