Navitas Petroleum Capital Market Presentation January 2018 1 - PowerPoint PPT Presentation

Navitas Petroleum Capital Market Presentation January 2018 1

Disclaimer Disclaimer This presentation does not constitute and is not to be interpreted as an invitation and/or offer to purchase and/or allocate securities in Navitas Petroleum – Limited Partnership (the “ Partnership ” ) and/or Navitas Buckskin Financing Ltd. (hereinafter: “ the Company ” and jointly “ the Corporations ” ). The Corporations are a reporting corporation asdefined in the Securities Law, 5728-1968 (hereinafter: “ the Law ” ). As such, they are governed bythe provisions of theLaw,includingtherestrictionsandprohibitionsset forththerein. Thispresentation andthe informationherein are the exclusiveproperty ofthe Corporations. Distribution and/or usethereof incontravention of anylaw and withoutprior,explicitand writtenapprovalfromtheCorporationsisstrictlyprohibited. This presentation was prepared solely for purposes of concision and convenience . The presentation cannot replace perusal of the draft public prospectus or the prospectus that has received permission from the ISA, which include the full and binding information about the Corporations and the securities offered thereby, including a full description of the risk factors to which the Corporations are exposed, prior to making a decision on an investment in the securities of the Corporations. In any event of discrepancy between the presentation and the draft prospectus and/or the prospectus and/or reports to be released by the Corporationsinthefutureasrequiredbylaw,suchdocumentswillprevail. The business strategy of the Corporations and their subsidiaries as presented in the presentation is true as of the date of the presentation and may change in thefuture,interalia,consideringmarketconditionsandthedecisionsoftheCorporations ’ boardofdirectors. The presentation includes forward-looking information, as defined in the law. Such information includes, inter alia, forecasts, objectives, assessments and estimates, includinginformationpresentedbyway of illustrationsand/or graphsand/ortables, whichrefer tofuture matters and/or events, the materialization ofwhichisneithercertainnorwithinthecontroloftheCorporations. Forward-looking information is based on assessments by Corporation management, which are based, inter alia, on information known to the management of the Corporations on the date of preparation of this presentation, including estimations of the business markets of the Corporations, public and statistical publications and data released by various authorities and bodies, the contents of which have not been independently examined by the Corporations are thereforenotresponsibleforthecorrectnessthereof. The materialization of forward-looking information, in whole or in part or differently than expected, or the non-materialization thereof, will be affected, inter alia, by the risk factors that characterize the business of the Corporations as well as the developments in the economic environment and exogenous factors that affect the Corporationsin their business segments,which cannot be estimated in advance and are not within the Corporations ’ control. The Corporations have no certainty that their estimations, plans and expectations will materialize and, consequently, the business results may materially differ from the results estimatedorimpliedbythisinformation. 2

Navitas Petroleum Partnership Navitas Petroleum Partnership Established activity Buckskin – Attractive entry East “ auto-pilot ” value Canada pricing Israel Houston generator Gulf of Mexico Right place and time for purchasing value creating assets 3

Navitas Assets Navitas has developed a balanced asset portfolio generating quick cash flow in the short term AssetsValue Cash flow from discoveriesunder development 1 Low cost & short Discoveries under Development High Impact Assets timeline to production 10projects in the Gulf of Mexico Area Buckskin Explorationlicense off the East Coastof Canada • Projects joined post-discovery andunder • High impact exploration projects with huge • Low-risk explorationprojects Time • Economically andgeologically development on opportunityterms upside potantial • Non-recourse projectfinancing • Significant value generation overtime provenarea • Inexpensive andswift • Quick and substantial cash flowgeneration • No need for immediate capital investments development • Quick cash flow generation 1. Cash flow attributed to the development of Phase 1A of the Buckskin Project and in case of discoveries – to PL16 and Bayou Fer Blanc projects 4

Navitas Assets Navitas Assets Canada St. John Total potential for Navitas -~660 million barrels¹ USA Total existing potential – 660 million barrels 1 New York Houston Houston BFB EC 228 EC 158 25 MMBOE PL 16 23 MMBOE 66 MMBOE 30 MMBOE Block 7 427 MMBOE EB 832 -3 MMBOE EB 252 EC 228 High Island A403 EB 876 -3 MMBOE 8 MMBOE 4 MMBOE 2 MMBOE² EB 915 -6 MMBOE St. John GC 82 24 MMBOE² Buckskin Montreal Labrador and Gulf of Mexico Drilling scheduled for 2018³ 39 MMBOE Newfoundland Discovery USA Discovery under development Canada 1. Navitasshareofthepotentialreservesandresourcesintheprojects(whichincludethecategoriesofProspectiveResources(BestEstimates)and/orContingentResources(2C)and/orReserves(2P),accordingtoNSAIreportsof8September2017,accordingtoBOE (BarrelsofOilEquivalent)calculation. GasunitperBOE:6MCF=1BBL. NSAIestimatesofthequantitiesofoilandnaturalgasresources bywhichpetroleumassetsconstituteforward-lookinginformationasdefinedwithintheSecuritiesLaw. Theestimatesaboveare based, inter alia, ongeological, geophysical, engineering and other information obtained from wellsand the reservoir operator and/or expert consultants in the field, and merely comprise NSAI estimatesand conjecture regarding which there is no certainty. The quantitiesofnaturalgasand/oroiltobeactuallyproducedmaydifferfromsuchestimationsandconjectures,interalia,asaresultofoperatingandtechnicalconditionsand/orregulatorychangesand/orconditionsofsupplyanddemandinthenaturalgasand/oroil marketand/orcommercialconditionsand/orasaresultoftheactualperformanceofthereservoirs.Suchestimationsandconjecturesmaybeupdatedinsofarasadditionalknowledgeaccumulatesand/orasaresultofagamutoffactorsrelatedtothepetroleumasset andtheproductionofoilandnaturalgas. 2. Includingdiscoveryandexploration. 3. Theaboveconstitutesforward-lookinginformation,asthematerializationthereof,inwholeorinpart,isuncertain,interalia,sinceitiscontingentondevelopmentsintheeconomicenvironmentandonexogenousfactorsthatarenotwithinthePartnership ’ scontrol. Insofarassuchdrillingisperformed,thereisnocertaintythatanypartofthespecifiedresourceswillindeedbediscovered,andifdiscovered – thereisnocertaintythatitwillbecommerciallyfeasibletoproduceanypartoftheresources. 5

Navitas Assets Discounted cashflow by project (prior to U.S. corporate tax deduction) Reserves and Geological Chance Net DCF based on Resources of Success² NSAI reports¹ Assets (mmboe)¹ ($mm) Discoveries Under Development 115 3 Buckskin north Proved+Probable (2P) 17.8 Discovery 1 4 Buckskin north Contingent 1.4 Discovery Buckskin south Contingent 19.3 Discovery NA Low cost Projects with short timeline to production PL 16 107 5 12.5 29% -48% PL 16s 7.6 48% 76 5 PL16 (additional prospects) 9.8 29% -31% NA Bayou Fer Blanc (BFB) 82 5 24.9 42% -45% Other U.S. licenses 139.2 19% until discovery NA High Impact Assets Canada License 427.4 15% NA 1.Navitasshareofthepotentialreservesandresourcesintheprojects(whichincludethecategoriesofProspectiveResources(BestEstimates)and/orContingentResources(2C)and/orReserves(2P),accordingtoNSAIreportsof8September2017,unrisked,accordingtoBOE(BarrelsofOilEquivalent). 2.InaccordancewithNSAIreportsof8September,2017. 3.TheshareofNavitasinthediscountedcashflowof2Pscenarioin8wellsaccordingtoNSAIreportof9November,2017,withaquantityof178millionbarrelsofoil.10%discountratepost6%royaltiesand35%taxes.Theaforesaidconstitutesforward-lookinginformation.Withrespecttothewarning regardingforward-lookinginformationondiscountedcashflowofreserves,seethewarningregardingforward-lookinginformationinSlide8. 4.TheshareofNavitasinthediscountedcashflowofa2CscenarioaccordingtoNSAI ’ sreportof9November,2017.Withrespecttothewarningregardingforward-lookinginformationondiscountedcashflowofreserves,seethewarningregardingforward-lookinginformationinSlide8. 5.DiscountedcashflowaccordingtoFootnote1assumingsuccessfulexplorationwell(s)andcommercialdiscovery. ThePartnershipchosetospecifydiscountedcashflowfigureswithrespecttotheProspectiveResourcesintheassetinrespectofwhichanin-principledecisionhasbeenmadebythe Partnershiptodrillawell,subjecttotheexistenceofsufficientfinancialsourcesatthepartnershiplevel,andnottopresentdiscountedcashflowfigureswithrespecttotheotherpetroleumassetsofthePartnership,includingwithrespecttoassetsinwhich,assumingsuccessfulexplorationdrillings,there areContingentResources,sincenoundertakingtodrillawelloradecisionasaforesaidhasyetbeenmadeinrespectthereof.Theaforesaidconstitutesforward-lookinginformation.Withrespecttothewarningregardingforward-lookinginformationondiscountedcashflowofProspectiveResources, seethewarningregardingforward-lookinginformationinSlide8. 6