Navitas with revenues of almost 100 million dollars since the beginning of the year

Gideon Tadmor (public relations photo, pixabay)

Gideon Tadmor’s Navits engages in gas and oil production in the Gulf of Mexico. Since the beginning of the year, it has achieved revenues of almost 100 million dollars and a net profit of almost 50 million dollars, which means that for every dollar the company brings in, it has earned half a dollar, and these are interesting figures.

In the third quarter of 2022, the partnership’s revenues totaled approximately $26.5 million, an increase of approximately 29% compared to revenues of approximately $20.6 million in the corresponding quarter last year. The EBITDA in the quarter amounted to approximately $16 million, compared to $15.3 million in the corresponding quarter, and the net profit increased by approximately 29% to $6.3 million, compared to approximately $4.9 million in the corresponding quarter.

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Navits stated that the increased production in the reservoirs alongside the strengthening of oil prices led to an increase of approximately 59% in Navits’ revenues in the first nine months of 2022, which amounted to approximately $97.8 million, compared to revenues of approximately $61.6 million in the corresponding period last year.

The partnership’s EBITDA in the first three quarters also increased by approximately 59% to $65.5 million, compared to approximately $41.1 million in the corresponding period last year. The net profit of Navits jumped almost 3 times to about 49 million dollars, compared to the net profit of the first nine months of 2021, which amounted to about 16.6 million dollars.

In the third quarter, Navits produced a total of 410,000 barrels of oil. Navits’ share of production from the Bakskin project (7.5%) was about 206,000 barrels of oil, compared to 189,000 barrels in the corresponding quarter. After connecting the third well at Bakskin, the daily production rate increased From the Bakskin project to 41 thousand barrels per day.

Navit’s share of production from the onshore Danbury Wenches oil fields in the third quarter was about 204 thousand barrels, compared to 222 thousand barrels in the corresponding quarter. The decrease is due to the fact that in July of this year the date for the reimbursement of the expenses of the horizontal drillings, which Navits bore and carried out, took place, and as of that date Navits is entitled to the receipts from the horizontal drillings as its original share in the rights of the project (50%). The average price of a barrel of WTI oil in the third quarter of 2022 was About $91.8, an increase of about 30% compared to a price of about $70.6 in the third quarter of 2021.

Navitas updates that it has completed an investment of about 40% of the budget for the development works of the Shenandoah project (388 million barrels). The total development cost (100%) is about 1.8 billion dollars. The development of Navits flagship project is progressing according to the work plan, schedules and budget framework and it will begin production at the end of 2024. The production from Shenandoah is expected to contribute about 39 thousand barrels of oil per day and the revenues of Navits in the first full production year of the reservoir is expected to jump to about 1.3 billion dollars, assuming a price of 66 dollars per barrel.

At the beginning of this month, Navitas began the execution of the four development and production wells in the project, at a cost of approximately 320 million dollars. Navit’s share (49%) is about 160 million dollars. The advanced drilling vessel of the Transocean Deepwater Atlas project arrived in the Shenandoah Reservoir area, and began drilling the first in the series, with the completion of the drilling works expected in the third quarter of 2023.

At the same time, Navits updates on the start of verification and evaluation drilling in the Bakskin South project, which has not yet been developed, as well as the completion of drilling work in three of the four additional horizontal production wells in the Danbury fields.

Navits chairman Gideon Tadmor: “Navits continues to present good operational results alongside high profitability. The partnership works to promote the development of the Shenandoah project, which is expected to lead to a significant increase in its activity. The start of the development drilling series in accordance with the schedules, the work plan and the original budget framework, places Navits on a path of progress towards the completion of the development of the project. At the same time, the partnership is working to prepare an effective development plan for the Silion project and promote it as another significant growth arm for Navits.

Navitas Petroleum operates in the oil field in North America and owns a wide and diverse asset portfolio. Navit’s share of existing discoveries is about 728 million barrels. Navits owns 49% of the rights in the Shenandoah project, which will begin production at the end of 2024, 65% of the Sea Lion oil property, and 7.5% of the rights in the Buckskin project in the Gulf of Mexico, USA, which began commercial production in 2019. In addition, Navits has activities in the arm of the Onshore-which includes 5 producing onshore fields in Texas (Navits share in the rights to the onshore assets approximately 50%) as well as other exploration assets.

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