The Navits Petroleum Partnership reports its results for 2021 with an impressive 100% increase in revenues from oil and gas sales, which amounted to $ 86.4 million, compared to revenues of $ 42.9 million in 2020, in light of the significant increase in oil prices during the year and increased output from the Baskin and Continental Fields project In the US. The net profit of the partnership in 2021 amounted to $ 3.9 million compared to a loss of about $ 15.9 million in 2020.
During the first quarter of 2022, the price of oil rose sharply and crossed the $ 100 barrel threshold, due to the geopolitical tension and its economic consequences. During the first quarter of 2022, Navits sold all oil production from the Baskin and Landfields project at an average price of $ 92 per barrel, compared to an average price of about $ 68 per barrel during 2021, record prices that would significantly increase partnership revenues.
The partnership’s EBITDA was about $ 55 million, compared to about $ 14 million in 2020, a fourfold increase. The Baskin project contributed about $ 35.9 million to EBITDA in 2021, compared to about $ 15.3 million in 2020. Navits updates that the operator of the Baskin project has completed as planned during February the third development drilling in the northern reservoir and that work to complete production is expected early in the third quarter. At the same time, during the third quarter, Navits will also drill an appraisal well in the Baskin South reservoir, another oil asset owned by the partnership, for which the partnership has not yet issued a capitalized cash flow.
The onshore assets contributed about $ 26 million to the partnership’s EBITDA, compared to about $ 5.2 million in 2020. Navits updates that it has completed drilling 10 horizontal development wells in the Denbury fields, at a cost of approximately $ 30 million, and that the connection and production from the last two wells will be completed. Until the end of the month.
During the fourth quarter, Navits recorded revenue of $ 24.7 million from the sale of oil and gas, an increase of about 20% compared to revenue in the corresponding quarter last year and Ebitda of $ 13.9 million, a fourfold increase compared to Ebitda in the corresponding quarter last year. During the quarter, Navits recorded a loss of approximately $ 12.6 million, due to one-time financing expenses of approximately $ 12 million resulting from the completion of financial financing for the Shenandoah project and the effect of the exchange rate.
During 2021, the production rate in the Baskin project increased by approximately 33% compared to 2020, and in the continental fields there was an increase of approximately 40% in the volume of production. The share of the partnership (7.5%) in production from the Baskin project was approximately 881 thousand barrels of oil at an average price of $ 67.91 compared to approximately 662 thousand barrels of oil in 2020, at an average price of $ 39.4.
During 2021 the share of the partnership in the production of the onshore assets was about 781 thousand barrels of oil compared to about 556 thousand barrels of oil in 2020, an increase of about 40%. The horizontal drilling in the Denbury fields, most of which have been completed and will be connected to production during 2021, and which have been connected to production so far, have contributed to an increase of approximately 174,000 barrels of oil.
At the same time, Navits is updating the discounted cash flow of its stake in the Naduada project to about $ 1.85 billion, under the assumption of an oil price of $ 66 at the time of production. Navits updates that development of the project is progressing according to plan, and production is expected to begin in late 2024. In addition, Navits reports that it is working to complete negotiations to acquire 65% of British oil company Harbor Energy and Rockhopper in order to advance Sea Lion project north of the islands Falkland.
Navits chairman Gideon Tadmor: “The exit from the Corona crisis and the geopolitical changes in Europe are creating a new reality in the global energy market. It has been proven once again that the necessity and importance of oil as the main source of energy in the world is unquestionable. “Navits’ operating strategy, which has taken advantage of opportunities to enter and invest in proven low-cost oil assets, is proving itself and is expected to yield great value to the partnership, even at significantly lower oil prices than today.”