Navitas Petroleum to raise $131m on TASE

Gideon Tadmor

The company is also planning a share offering on the TASE at a $100 million company value.

Oil and gas partnership Navitas Petroleum, owned by former Avner Oil and Gas LP (TASE: AVNR.L) CEO Gideon Tadmor, today submitted a draft prospectus for a $131 million bond issue on the Tel Aviv Stock Exchange (TASE) through its subsidiary, Navitas Buckskin Financing. The money raised will be used for rapid development of the huge Buckskin oil discovery in the Gulf of Mexico. Navitas Petroleum also submitted a draft prospectus for raising capital for the exploration and development of the partnership's assets in the US and Canada.

Navitas Petroleum's bonds have been rated A minus by S&P Maalot. The company plans to use the money raised to finance its and its partner, US energy operator LLOG Exploration's, share in the development of the Buckskin project in the Gulf of Mexico. The company is also planning an equity offering on the TASE at a company value of $100 million.

After the bond issue is completed, Navitas Petroleum plans on becoming a 5% partner in the huge proven Buckskin oil discovery, which contains 486 million barrels, without having paid a share of the $1 billion in past expenses in exploratory drilling and analysis. The process of developing the reservoir, which is being led by LLOG, is slated for completion in 2019, after a final investment decision (FID) for the project was taken in February.

Published by Globes [online], Israel Business News - www.globes-online.com - on June 13, 2017

© Copyright of Globes Publisher Itonut (1983) Ltd. 2017

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Gideon Tadmor
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