powerpoint presentation - navitas petroleum › wp-content › uploads › 2019 › 11 › na...2...

Investor PresentationApril 2019

2

Disclaimer

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 a decision to investin the securities of the Partnership or of companies held thereby. No explicit or implicit representation or undertaking are made with respect to the accuracy orcompleteness of any information included herein. In particular, no representation or undertaking are made with respect to the reasonableness and/or materialization ofany forecast. For a full picture of the Partnership’s business and the risks entailed thereby, see the offering prospectus released by the Partnership and any and allimmediate and periodic reports filed by the Partnership with the Israel Securities Authority and the Tel Aviv Stock Exchange Ltd., including warnings pertaining toforward-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 the expectation, andmay be affected by various factors that cannot be assessed in advance. Furthermore, the timetables for the performance of various actions in the context of thepetroleum assets in which the Partnership has working interests, that are included in this presentation, and the cost thereof, are estimated and include forward-lookinginformation that is not certain, is based on merely partial information that is available to the General Partner on the date of the presentation, and includes assessmentsof the General Partner based on the information available thereto on the date hereof, which may change based on the progress of the activities, the date of actualperformance thereof and the resultant findings, as well as numerous external influences and/or restrictions such as changes in the condition of the petroleum assets, adelay in the receipt of approvals and permits required for the performance of the various activities, dependence on contractors, etc. Therefore, the actions actuallyperformed and the dates thereof may differ materially from the assessed or implied targets. Furthermore, the data regarding the quantity of recoverable oil barrels fromeach one of the Partnership’s assets also constitutes forward-looking information, that is based on reports received by the Partnership from an independent reservesevaluator, which may be updated 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 to reflectsubsequent events and/or circumstances, other than as required by law. The Partnership’s business strategy described in the presentation is correct as of the datehereof, and may change in the future, inter alia in consideration of the market conditions and the decisions of the Board of Directors of the Partnership’s GeneralPartner.The presentation also includes public and statistical publications released by various authorities and bodies, the content of which has not been independently checked bythe 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 presented in a conciseand/or graphic and/or brief manner, and therefore this presentation is not a substitute for inspection of the Partnership’s reports, but rather a supplementary source ofinformation. In any event of discrepancy between this presentation and the prospectus and/or reports released by the Partnership, such prospectus and/or reports shallprevail.This presentation is not an offer and/or invitation to purchase securities of the Partnership. This presentation and anything included herein are not a basis for anycontract or undertaking, and should not be relied upon in such context. The information provided in the presentation is not a basis for the making of any investmentdecision, is not a recommendation or an opinion, and is no substitute for the discretion of a potential investor.

3

▪ Feed stage ▪ evaluations of

development plans

Shenandoah Discovery

BP, Hess & Noble Energy filed an exploration plan to drill 20 wells in the adjacent blocks

Block 7, offshore Canada

Review of further development

Buckskin South Discovery

First Oil – July 19

Buckskin North Project

Navitas PetroleumCorporate Business Card

4

Leveraging Opportunities and Creating Value

Project Purchase Cost DCF

Shenandoah $1m $415m(NPV12)

Buckskin North - $239m(NPV10)

Buckskin South -Forecast not yet

published

GC-82 $0.7mForecast not yet

published

Block 7, Canada

Navitas Discovered Reserves (MMBOE)

16

65

24

105

427 MMBOEProspective Resources potential

Buckskin North2 ) P(GC-82

2 ) C(

Shenandoah2 ) C(

1. For details on the above figures see the Partnership’s 2018 annual report and attached NSAI report .

5

Assets and Liabilities - December 31, 2018

Buckskin North

$238.6m(NPV10)1

Buckskin South

Navitas Buckskin USNet Financial Debt

($25.8m)3

Net Financial Debt, Partnership Solo

($24.6m)3

שננדואה

$415.1m(NPV12)2

$4.1m4(Book Value)

Buckskin

Net Financial

Debt

Shenandoah

Exploration Assets


6

Assumed oil prices:31.12.19 31.12.20 31.12.21 31.12.22 onwards

Oil price(US$/bbl) 61.0 64.4 65.1 65.5 66.8

Buckskin North and Shenandoah

-

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

2020 2021 2022 2023 2024

1,956

8,374

-

50

100

150

200

250

300

350

400

450

500

2020 2021 2022 2023 2024

-

50

100

150

200

250

300

2020 2021 2022 2023 2024

Income ForecastMillion US$

EBITDA ForecastMillion US$

Yearly Production ForecastMBOE

50 5473

118

485

852 35 3851

79

287

Shenandoah (net)

Buckskin North (net)

9061,214


7

Buckskin Project –Months from Initial Production

July 2019Expected first oil- according to plan

$239 millionDCF value1 (Buckskin north only, NPV10)

16 MMBOENavitas share in the reserves1

2,250 boe/d Navitas share of production rate

$15 dollars per barrelExpected OPEX per barrel

89%Development CAPEX budget invested

$41 million – fully financedNavitas share in the project budget

7.5%Navitas working interest

18 years of productionUntil 2036

USAGulf of Mexico

Industry leading partners


0

10

20

30

40

50

60

70

80

90

2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 ואילך2030

8

Navitas share of project FCF (million US$)

$576mTotal project cashflow (net)

$239mDCF NPV10 (net)

Buckskin North – Significant Achievement for Navitas


2. See prices assumed in slide 2.

Azrieli Round Tower (Tel-Aviv)

187 meters

Buckskin gross sand column

415 meters

For 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.

Area of Tel Aviv-Jaffa

52 sq. km

Buckskin reservoir area

111 sq. km

Buckskin oil discoveryOne of US Gulf of Mexico’s Largest Oil Discoveries

9

10

Buckskin North

16 MMBOE(NPV10)$239m


Buckskin SouthHuge Potential for Further Development

Oil discoveryAnnounced by Chevron in 2008


Review of future developmentFollowing the good results of Buckskin North

Buckskin SouthUSAGulf of Mexico


11

-

$415mDCF Value1 (NPV12, net)

65 MMBOENavitas share in the discovery1

16,170 boe/dNavitas share of production rate

$1.7blnInvestment to date (prior to Navitas acquisition)

FEED StageCurrent status

$184mNavitas share in the project budget


2023Estimated first production

Wide potential areaProspects scheduled to be drilled by Equinor


USAGulf of Mexico

Shenandoah – the Project is Underway!


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$415 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 planHow Did Navitas Acquire Shenandoah?

SOP plan approved

Licenses extended

-

12

13

-

2019 2020 2021 2022 2023

Feed stage

Drilling

Subsea pipelines

Production platform

Subsea facilities

Completions

First Production

Shenandoah Project 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 70,000 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

Delta House production platform

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

Designated production platform –

regional production hub

Shenandoahproduction platform

MONUMENT

GSA – Greater Shenandoah Area(tie-back potential – 30 miles radius)

Prospects scheduled to be drilled by Equinor & partners in 2019

Shenandoah North and Yucatan South

(joint development)

MONTAUKTHURINGER

Activity Update2018 drilling plan

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

Shenandoah as a Hub in the Greater Shenandoah Area

14

-100

0

100

200

300

400

500

600

700

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

15

-

$1,869mTotal project cashflow (net)

Navitas share of project FCF (million US$)

Shenandoah ProjectA massive growth engine!

$415mDCF NPV12 (net)


2. See prices assumed in slide 2.


2. See BP’s newsletter-https://www.bp.com/content/dam/bp-country/en_ca/canada/documents/NFLD_docs/BP-Nfld-Newsletter-January-2019.pdf

Block 7, CanadaOne of the World’s Most Attractive Frontier Exploration Basins

2000 SqkmBlock 7

30% Navitas70% Delek Group

427 MMBOEProspective Resources potential (net to Navitas)

2020 beginning of a substantial drilling campaign in adjacent blocksIn 2018, BP and Noble filed an exploration plan to drill 20 wells in the blocks adjacent to Navitas Block 7

Eastern NewfoundlandOffshore east Canada

Block 3BP

Noble EnergyHess

Block 4BP

Noble EnergyHess

Block 8BP

Noble EnergyHess

https://www.bp.com/content/dam/bp-country/en_ca/canada/documents/NFLD_docs/BP-Nfld-Newsletter-January-2019.pdf

17

$27mBalance of cash and cash equivalents, including short-term deposits of the Partnership and its subsidiaries (excluding balances held by Navitas Buckskin US) as of March 28, 2019

17

$14mIssue of bondsFebruary 2019

Key Financials

Net Financial DebtPartnership Solo

as of December 31, 2018

Dollars thousands

Liabilities

Bonds (series A) (20,391)

Loans from former controlling interest (9,761)

Other financial liabilities, net (1,032)

(31,184)

Assets

Cash and cash equivalents 3,816

Short-term investments 2,809

6,625

Financial debt, net (24,559)

$21mIssue of bonds2018

$8mIssue of equityJanuary 2019

$6mIssue of equity2018

1. For details on the above figures see the Partnership’s 2018 annual report.

18

Key Financials

Net Financial DebtNavitas Buckskin US

as of December 31, 2018

Dollars thousands

Liabilities

Bonds (series A) (41,531)

Other financial liabilities, net (828)

(42,359)

Assets

Cash and cash equivalents 8,823

Amounts held in trust 7,014

15,837

Financial debt, net (26,522)


1919

Illustrations of Cash Flows from Buckskin Project until Bonds Maturity (Project and Corporate)

WTI Price: $60

$148m~

Buckskin Refi Balance

$49m

FCF until 06/21

Project Bonds

$41m

Balance

$22mFCF 07/21-06/22

Corporate Bonds

$35m

Balnce

WTI Price: $50

Corporate and Project Bonds

$110m~

Buckskin Refi

$17mFCF 07/21-06/22

$37m

FCF until 06/21


Thank You!

For further information

Amit Kornhauser

CFO

Phone: +972-9-7883680

[email protected]

mailto:[email protected]

powerpoint presentation - navitas petroleum › wp-content › uploads › 2019 › 11 › na...2...

Documents