Navitas raises NIS 271m for Shenandoah Project

Gideon Tadmor

An investment decision on the oil project in the Gulf of Mexico is expected within the next few months.

The Navitas Petroleum partnership, headed by chairman Gideon Tadmor, raised NIS 271 million in the institutional stage of an offering of participation units this morning. The partnership offered units at NIS 20.91 each, representing a 3.7% discount on the closing price of its participation units yesterday. Demand totaled NIS 360 million.

Navitas Petroleum holds 7.5% of the Buckskin Project in the Gulf of Mexico, which started commercial production six months ago of over 35,000 barrels of oil a day. Navitas recently raised its holding in the Shenandoah Project, a 281 million-barrel oil field also in the Gulf of Mexico, to 53%. Navitas believes that a final investment decision on the project will be made in the first half of 2020.

Navitas also holds rights in the Block 7 exploration license off the east coast of Canada, and in the Neches producing oil field (7 million barrels) in Texas. The partnership also recently reported that it had signed an agreement for the purchase of 50% of the rights in four additional oil assets in Texas (15 million barrels).

Navitas Petroleum made its initial offering on the Tel Aviv Stock exchange in the summer of 2017, when it raised NIS 530 million in an offering of bonds and participation units. It has since made several further offerings.

In the past year, the partnership has doubled its market cap to NIS 980 million (after a 4% fall today).

"We will use the proceeds of the offering for, among other things, advancement of the Shenandoah Project, on which an investment decision is expected in the course of the next few months. Navitas will continue to take advantage of investment opportunities in accordance with our strategy of taking stakes in proven reserves with economic potential that have not yet been developed."

Published by Globes, Israel business news - en.globes.co.il - on January 13, 2020

© Copyright of Globes Publisher Itonut (1983) Ltd. 2020

Gideon Tadmor
Gideon Tadmor
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