Navitas Petroleum Capital Market Presentation January 2019 1 - PowerPoint PPT Presentation

Navitas Petroleum Capital Market Presentation January 2019 1

תוירחא תלבגה 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 Partnership Navitas Petroleum Partnership Business 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 Canada ▪ Shenandoah – Houston Israel ▪ 281 mmboe (2C, gross) ▪ USA 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 3

Shenandoah A GAME CHANGER

Activity Update The Project is Underway! 2018 drilling plan A massive growth engine Value for Navitas 1 Resources 1 (NPV12, net) (2C, net) US$425 MM 65 mmboe ▪ Cash flow based on the development outline of the project operator – LLOG Exploration םיקזח םיפתוש ▪ Joint development of Shenandoah and Shenandoah South (North Yucatan) ▪ Project is at the FEED stage ▪ First Oil expected at 2 nd 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 5 12% and net of tax and royalties to third parties and to the GP.

Activity Update How did Navitas acquire Shenandoah? Thinking outside the box and seizing the opportunity 2018 drilling plan January 2018 2009-2017 April 2018 ▪ ▪ ▪ $1.7 billion invested Cobalt data Cobalt in the asset room opens assets bid Licenses April 2018 revoked back Licenses expire to government December 2017 Is there a ▪ Cobalt enters Chapter 11 way to save the asset? NSAI Report – US$425 MM (NPV12, net) SOP plan SOP plan filed Licenses extended approved September 2018 February 2018 March-April 2018 December 2018 ▪ ▪ Navitas puts together LLOG appointed as integrated transaction operator and files SOP ▪ with Venari, Beacon Navitas wins Shenandoah and LLOG in Cobalt ’ s bid 6

Activity Update Shenandoah Project 2018 drilling plan Project ID (including Shenandoah South) Navitas Working Interest 23.1% √ Discovery Appraised √ Number of wells drilled 8 Oil/Gas Oil Water depth 1,700 meters Investments to date Approx. US$1.7 BN Resources (2C, gross) 281 mmobe Resources (2C, net) 65 mmboe DCF Value (NPV12, net) $425 million Strong partners – Shenandoah South (Yucatan) Strong partners – Shenandoah 13.9% 15.95% 27.1% 5.9% 30.95% 11.2% 30.0% 18.8% 23.1% 23.1% 7

Activity Update Shenandoah Project 2018 drilling plan A massive growth engine! Expected timeline and key milestone to first production FEED First Production Drilling Completions Subsea facilities Subsea pipelines Production platform 2018 2019 2020 2021 2022 2023 ▪ The development scheme includes initial production from 4 wells (out Delta House production platform 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 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. 8

Activity Update Shenandoah Project 2018 drilling plan A massive growth engine! Cash flow forecast (net) 250 213 191 200 179 165 161 155 Estimated first 150 120 production US$ MM 85 100 58 50 0 -7 -7 -17 -50 -60 -75 -100 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 Year The forecast does not include potential revenue from utilization of the production platform – PHA fees The 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. 9

Activity Update Shenandoah as a hub in the GSA 2018 drilling plan (Greater Shenandoah Area) Designated production platform – regional production hub Shenandoah production platform MONTAUK THURINGER MONUMENT Shenandoah North and South (joint development) GSA – Greater Shenandoah Area (tie-back potential – 20 miles radius) Illustration slide, demonstrating the potential of Shenandoah as a regional production Hub. 10

Buckskin First Oil – 07/19