Investor Presentation - December 2019 - Navitas Petroleum
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Investor Presentation
December 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
Partnership Strategy
Acquisition of oil and gas assets with proved reserves and significant development potential
Producing asset
Discovery awaiting FID
Exploration
Block 7, Canada
BP filed an exploration plan
to drill 20 wells in the
adjacent blocks (2021)
Neches
Onshore producing oil field
with further development Buckskin North Project
potential Offshore oil field, producing
over 35,000 bop/d
Shenandoah Discovery
Buckskin South Discovery
FEED stage, Towards FID
Under review of further
development
3
Activity Updates Buckskin North ▪ Production facility upgrade is completed ▪ Production of over 35,000 bop/d – above expectations Shenandoah ▪ Acquired an additional 30% → Navitas is the largest partner, holding 53.1% WI ▪ Major milestone reached – long lead items purchased for project development ▪ FEED stage, closely advancing towards project sanction – Final Investment Decision (FID) Onshore Assets ▪ Neches – operatorship turn-over is completed and the actions to optimize and increase production are taking place ▪ MOU signed to acquire 50% working interest in 4 onshore producing oil fields for ~$45m Finance ▪ Transition to positive EBITDA in the Q3 2019 ▪ Events after the reporting period - $19.5m equity was raised due to exercise of existing investors options 4
Value Creating Projects
Navitas Discovered Reserves (MMBOE) Project Navitas Net DCF
Neches
)2P( Shenandoah $969m
Buckskin North )2C-NPV10(
)2P(
GC-82 7 16 Buckskin North $246m
)2P-NPV10(
)2C(
24
Buckskin South Forecast not yet published
191
Neches $61m
)2P-NPV10(
144 GC-82 Forecast not yet published
Shenandoah
)2C( 427 MMBOE
Block 7, Canada Prospective Resources potential
5
Navitas Offshore Strategy
Neutralize Risk and Shorten “Cycle” Duration
Investment Risk First Oil Buckskin
FID
)$( Case Study
$0.54bn
FEED,
Financing
Appraisal
Well #2
Appraisal
$1.1bn
Well #1
Exploration
Seismic Drilling
Survey Navitas entrance
3D point
Time
1 2 3 4 5 6 7 8 9 10
)t(
Standard offshore asset “full cycle” duration is approximately 10 years Buckskin Project -
6 1.5 years
Buckskin North
Production of over 35,000 BOP/D
USA $982 million
Gulf of Mexico Expected net income
7.5% $246 million
Navitas working interest DCF value (Buckskin north only, NPV10)
Project Partners
18 years of production 16 MMBOE
Until 2036 Reserves
18 months to first oil 2,625 BOE/D ILX III
Quick and efficient development Navitas share of average production rate
2 wells are now producing $14 dollars per barrel
Future plans - 10 producing wells Total uplift cost
7
Buckskin South
Review of Further Development
USA
Gulf of Mexico
Oil discovery
Larger than Buckskin North
Project Partners
Substantial Resources
and producible volumes
Buckskin South
7.5%
Navitas working interest
ILX III
Further development in review
Following the good results of Buckskin North
8
-
Shenandoah – Advancing Towards FID
USA $969m
Gulf of Mexico DCF Value (NPV10, net)
$1.7bn 144 MMBOE
Investment to date (prior to Navitas acquisition) Expected production quantity
53.1% 35,880 BOE/D Project Partners
Navitas working interest Navitas share of daily production
FEED Stage $412m
Current status Development CAPEX (Navitas share)
2023
Estimated first production
9
-
Shenandoah – Paving the Road to FID
Create and exploit windows of opportunity Advancing towards FID
Excellent project economics enjoying $1.7bn sunk cost
Step I Step II
Acquire Cobalt’s Partner with: Well appraised oil discovery 9 penetrations to date
23.1% in federal ▪ Leading offshore
Navitas Bring-in operator – LLOG
bankruptcy process
23.1% partners ▪ Beacon (Blackstone)
Standard and straightforward development allows FID soon
Step IV Step III
Leading proven operator LLOG has the right experience
Acquire Venari’s
Partners aligned to Navitas 30% - Navitas is
advance project FID 53.1% Long lead items purchased from TechnipFMC
the largest partner
towards FID
with 53.1% WI
Project financing partners are pursuing financing alternatives
10Shenandoah Development Estimated Timeline
▪ Implementation of 20k PSI standard technology as part of the development plan (implemented in Proven development scheme
Anchor Project which has recently reached FID)
▪ 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
▪ Development of regional-hub production model that will serve adjacent discoveries
2019 2020 2021 2022 2023
Feed stage FID
Long lead items purchase Subsea facilities
Subsea pipelines
Production platform
First Oil - 12/2023
11Activity
Shenandoah
Navitas Onshore Update
Strategy as a hub in the GSA
2018 drilling
(Greater
Conventional Proven plan OilArea)
Shenandoah
Producing Fields
Value
NPV10(2P)
Upside above
acquisition cost
NPV10(1P)
Value Creation
Acquisition cost -
NPV45(1P)
Acquisition Cost
Navitas
entrance point Time
)t(
12-
Neches – Production with Development Upside
Producing oil field $61m
Texas, USA DCF Value (NPV10, net)
9,400 Acres 175 MBOE
Field size Present annual production rate
98% 761 MBOE
Expected annual production rate after the
Navitas working interest completion of further development
$21 dollars per barrel 7.3 MMBOE
Total uplift cost, net Reserves
13Block 7, Canada
One of the World’s Most Attractive Frontier Exploration Basins
Eastern Newfoundland
Offshore east Canada Block 4
Block 3
2000 Sqkm
Block 7
30% Navitas
70% Delek Group Block 8
427 MMBOE
Prospective Resources potential
(net to Navitas)
2021 beginning of a substantial drilling campaign in adjacent blocks
BP filed an exploration plan to drill 20 wells during 2021 in the blocks adjacent to Navitas Block 7.
Navitas will wait to the success of BP’s drilling results prior to investment decisions.
14Assets and Liabilities
Producing asset
Buckskin North
Discovery awaiting FID $246m
Exploration (NPV10)
Net financial debt שננדואה
$969m Shenandoah Buckskin
Buckskin South
(NPV10)
Navitas Buckskin US
Net Financial Debt
($28.8m)
$1.7m
Exploration Assets )Book Value(
$61m
(NPV10) Neches Net Financial Debt,
Partnership Solo
Net Financial Debt ($35.3m)
15Buckskin North, Shenandoah & Neches
Daily Production Forecast Income Forecast EBITDA Forecast
BOE/D Million US$ Million US$
50,000 1,000 600
47,200
906
45,000 43,737 900
507
500
40,000 800
35,000 700
400
30,000 600
25,000 500 300
20,000 400
200
15,000 300
189 121
10,000 200
5,192 112 100 76
5,000 3,241 3,884 100 68 83 45 56
- - -
2020 2021 2022 2023 2024 2020 2021 2022 2023 2024 2020 2021 2022 2023 2024
Neches (net) Assumed oil prices:
Oil price (US$/bbl) 2019 2020 2021 2022 onwards
Shenandoah (net) Buckskin North 61.0 64.4 65.1 65.5 66.8
Neches 59.3 60.7 61.7 62.0 62.7
Buckskin North (net)
Oil price (US$/bbl) 2023 2024 2025 onwards
16 Shenandoah 59.98 59.98 59.98 59.98Key Financials
Net Financial Debt Net Financial Debt
Partnership Solo Navitas Buckskin US
as of September 30, 2019 as of September 30, 2019
Dollars thousands
Dollars thousands
Liabilities
Liabilities
Bonds (series A) (37,305)
Bonds (series A) (42,336)
Loans from former controlling interest (10,251)
Short-term credit from banking (42,336)
(10,030)
corporations
Assets
Other financial liabilities, net (3,073)
Cash and cash equivalents 4,295
(60,659)
Assets Other financial assets, net 6,939
Cash and cash equivalents 8,090 Amounts held in trust 2,325
Short-term investments 2,724 13,559
10,814
Financial debt, net (49,845) Financial debt, net (28,777)
1. Events after the reporting period (November 19’)- exercising option warrants (Investors options) for $19.5m and new acquisition in Shenandoah for $5m – net financial debt is $35.3m.
17Thank You!
For further information
Amit Kornhauser
CFO
Phone: +972-9-7883680
amit@navitaspet.comYou can also read
