Investor Presentation - April 2019 - Navitas Petroleum
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Investor Presentation
April 2019
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 invest in the securities of the Partnership or of companies held thereby. No explicit or implicit representation or undertaking are made with respect to the accuracy or completeness of any information included herein. In particular, no representation or undertaking are made with respect to the reasonableness and/or materialization of any 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 all immediate and periodic reports filed by the Partnership with the Israel Securities Authority and the Tel 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 the expectation, and may be affected by various factors that cannot be assessed in advance. Furthermore, the timetables for the performance of various actions 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 on the date of the presentation, and includes assessments of 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 actual performance thereof and the resultant findings, as well as numerous external influences and/or restrictions such as changes in the condition of the petroleum assets, a delay in the receipt of approvals and permits required for the performance of the various activities, dependence on contractors, etc. Therefore, the actions actually performed and the dates thereof may differ materially from the assessed or implied targets. Furthermore, the data regarding the quantity of recoverable oil barrels from each one of the Partnership’s assets also constitutes forward-looking information, that is based on reports received by the Partnership from an independent reserves evaluator, 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 reflect subsequent events and/or circumstances, other than as required by law. The Partnership’s business strategy described in the presentation is correct as 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 the Partnership’s General Partner. The presentation also includes public and statistical publications released by various authorities and bodies, the content of which has not been independently 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 presented in 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 a supplementary source of information. In any event of discrepancy between this presentation and the prospectus and/or reports released by the Partnership, 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 basis for 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 making of any investment decision, is not a recommendation or an opinion, and is no substitute for the discretion of a potential investor. 2
Navitas Petroleum
Corporate Business Card
Block 7, offshore Canada
BP, Hess & Noble Energy
filed an exploration plan to
Buckskin North Project drill 20 wells in the
adjacent blocks
First Oil – July 19
Buckskin South Discovery
Review of further
development
Shenandoah Discovery
▪ Feed stage
▪ evaluations of
development plans
3
Leveraging Opportunities and Creating Value
Navitas Discovered Reserves (MMBOE)
Project Purchase Cost DCF
Buckskin North
)2P( Shenandoah $1m $415m
GC-82 )NPV12(
)2C(
24 16 $239m
Buckskin South
Buckskin North - )NPV10(
19 )2C(
124
Forecast not yet
Buckskin South - published
65
Forecast not yet
GC-82 $0.7m published
Shenandoah
)2C(
427 MMBOE
Block 7, Canada Prospective Resources potential
4 1. For details on the above figures see the Partnership’s 2018 annual report and attached NSAI report .
Assets and Liabilities - December 31, 2018
שננדואה Buckskin North
$238.6m
(NPV10)1
$415.1m Shenandoah Buckskin
(NPV12)2
Buckskin US
Navitas Buckskin US
Net Financial Debt
($25.8m)3
Net
$4.1m Exploration Net Financial Debt,
Financial
)Book Value(4 Assets Partnership Solo
Debt ($24.6m)3
5 1. For details on the above figures see the Partnership’s 2018 annual report and attached NSAI report .
Buckskin North and Shenandoah
Yearly Production Forecast EBITDA Forecast Income Forecast
MBOE Million US$ Million US$
9,000 300 287 500 485
8,374
8,000 450
250
400
7,000
350
6,000 200
300
5,000
150 250
4,000
200
3,000 100
79 150
118
2,000
1,956
1,214 51 100
73
852 906
50
35 38 50 54
1,000 50
- - -
2020 2021 2022 2023 2024 2020 2021 2022 2023 2024 2020 2021 2022 2023 2024
Shenandoah (net)
Buckskin North (net)
Assumed oil prices:
31.12.19 31.12.20 31.12.21 31.12.22 onwards
1. For details on the above figures see the Partnership’s 2018 annual report and attached NSAI report . Oil price
6 (US$/bbl) 61.0 64.4 65.1 65.5 66.8
Buckskin Project –Months from Initial Production
July 2019 7.5%
Expected first oil- according to plan Navitas working interest
$239 million $15 dollars per barrel
DCF value1 (Buckskin north only, NPV10) Expected OPEX per barrel
Industry leading partners
16 MMBOE 89%
Navitas share in the reserves1 Development CAPEX budget invested
2,250 boe/d $41 million – fully financed
Navitas share of production rate Navitas share in the project budget
18 years of production USA
Until 2036 Gulf of Mexico
1. For details on the above figures see the Partnership’s 2018 annual report and attached NSAI report .
7
Buckskin North – Significant Achivement for Navitas
Navitas share of project FCF (million US$)
90
80
70
60
50
40
$576m
30 Total project cashflow (net)
20
10
$239m
DCF NPV10 (net)
0
2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 ואילך2030
1. For details on the above figures see the Partnership’s 2018 annual report and attached NSAI report .
2. See prices assumed in slide 2.
8
Buckskin oil discovery
One of US Gulf of Mexico’s Largest Oil Discoveries
Buckskin gross
Area of Tel Aviv-
sand column
Jaffa 415 meters
52 sq. km
Buckskin
reservoir area
111 sq. km Azrieli Round
Tower (Tel-Aviv)
187 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 project
operator.
9
Buckskin South
Huge Potential for Further Development
Oil discovery
Announced by Chevron in 2008
Buckskin North
7.5% 16 MMBOE
Navitas working interest $239m )NPV10(
Industry leading partners
19 MMBOE
Navitas share in the discovery1
Buckskin South
Review of future development 19 MMBOE
Following the good results of Buckskin North
USA
Gulf of Mexico
10 1. For details on the above figures see the Partnership’s 2018 annual report and attached NSAI report .- Shenandoah – the Project is Underway! FEED Stage $1.7bln Current status Investment to date (prior to Navitas acquisition) $415m 2023 DCF Value1 (NPV12, net) Estimated first production 65 MMBOE $184m Industry leading partners Navitas share in the discovery1 Navitas share in the project budget 16,170 boe/d USA Navitas share of production rate Gulf of Mexico 23.1% Wide potential area Navitas working interest Prospects scheduled to be drilled by Equinor 11 1. For details on the above figures see the Partnership’s 2018 annual report and attached NSAI report .
-How DidActivity
Navitas
Update
2018 drilling plan Acquire Shenandoah?
2009-2017 January 2018 April 2018
▪ $1.7 billion invested ▪ Cobalt data ▪ Cobalt
in the asset room opens assets bid
April 2018 Licenses
Licenses revoked back
expire to government
December 2017
▪ Cobalt enters Is there a
Chapter 11 way to
save the
asset? NSAI Report –
US$415 MM
(NPV12, net)
SOP plan
SOP plan filed Licenses extended
approved
February 2018 March-April 2018 September 2018 December 2018
▪ Navitas puts together ▪ LLOG appointed as
integrated operator and files SOP
transaction with ▪ Navitas wins Shenandoah
Venari, Beacon and in Cobalt’s bid
LLOG
12-Shenandoah Project
Expected timeline and key milestone to first production
▪ The development scheme includes initial production from 4
2019 2020 2021 2022 2023 wells (out of a total of 8 wells), manufacturing and
installation of subsea facilities, pipelines and a designated
production platform
Feed stage
Subsea facilities ▪ The designated platform will have a production capacity of
over 70,000 boe/d and is based on a proven regional-hub
Subsea pipelines production model, which LLOG is successfully implementing
in the Delta House, Who-Dat and Khaleesi & Mormont
Production platform
projects
Drilling
Delta House production platform
Completions
First
Production
The information presented in this slide constitutes forward-looking information, as defined in the Israeli Securities Law, 5728-1968. In this regard, see Slide 2.
13Activity Update
Shenandoah as a Hub inasthe
Shenandoah a hub in the
Greater GSA
Shenandoah Area
2018 drilling
(Greater plan
Shenandoah Area)
Designated production platform –
regional production hub
Shenandoah
production platform
MONTAUK
THURINGER
MONUMENT
Shenandoah North and
Yucatan South
(joint development)
GSA – Greater Shenandoah Area
(tie-back potential – 30 miles radius)
Prospects scheduled to be drilled by
Equinor & partners in 2019
14-Shenandoah Project
A massive growth engine!
Navitas share of project FCF (million US$)
700
600
500
400
300 $1,869m
Total project cashflow (net)
200
100
$415m
0 DCF NPV12 (net)
2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
ואילך
-100
1. For details on the above figures see the Partnership’s 2018 annual report and attached NSAI report .
15 2. See prices assumed in slide 2.Block 7, Canada
One of the World’s Most Attractive Frontier Exploration Basins
Eastern Newfoundland
Offshore east Canada
Block 4
Block 3 BP
2000 Sqkm Noble Energy
Block 7 BP
Noble Energy Hess
Hess
30% Navitas
Block 8
70% Delek Group
BP
Noble Energy
Hess
427 MMBOE
Prospective Resources potential
(net to Navitas)
2020 beginning of a substantial drilling campaign in adjacent blocks
In 2018, BP and Noble filed an exploration plan to drill 20 wells in the blocks adjacent to Navitas Block 7
1. For details on the above figures see the Partnership’s 2018 annual report and attached NSAI report .
16 2. See BP’s newsletter-https://www.bp.com/content/dam/bp-country/en_ca/canada/documents/NFLD_docs/BP-Nfld-Newsletter-January-2019.pdfKey Financials
Net Financial Debt
Partnership Solo
as of December 31, 2018
$14m $21m
Issue of bonds Issue of bonds
Dollars thousands February 2019 2018
Liabilities
Bonds (series A) (20,391) $8m $6m
Loans from former controlling interest (9,761) Issue of equity Issue of equity
Other financial liabilities, net (1,032)
January 2019 2018
(31,184)
Assets $27m
Balance of cash and cash equivalents, including short-
Cash and cash equivalents 3,816
term deposits of the Partnership and its subsidiaries
Short-term investments 2,809 (excluding balances held by Navitas Buckskin US) as of
March 28, 2019
6,625
Financial debt, net (24,559)
17 1. For details on the above figures see the Partnership’s 2018 annual report.Key Financials
Net Financial Debt
Navitas 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)
1. For details on the above figures see the Partnership’s 2018 annual report.
18Corporate and Project Bonds
Illustrations of Cash Flows from Buckskin Project until Bonds Maturity (Project and Corporate)
WTI Price: $60
WTI Price: $50
~$148m
Balance
~$110m
Buckskin Refi
Buckskin Refi
$35m Corporate
$22m Bonds $17m
Balnce FCF 07/21-06/22
FCF 07/21-06/22
$49m $41m Project $37m
FCF until 06/21 Balance Bonds
FCF until 06/21
19 1. For details on the above figures see the Partnership’s 2018 annual report.Thank You!
For further information
Amit Kornhauser
CFO
Phone: +972-9-7883680
amit@navitaspet.comYou can also read
