Navitas reaches record quarter and acquires second production facility for the Sea Lion project in the Falklands

The oil and gas exploration partnership Navitas, operating in the Americas, recorded a sharp jump in revenues in the second quarter of 2026 compared to the same quarter last year, following the start of full production at its flagship project in July 2025 - the Shenandoah reservoir in the Gulf of Mexico. Navitas concluded the second quarter of 2026 with revenues of $279 million, a 15-fold jump compared to the same quarter last year. The net profit for the partnership's participation unit holders stood at $77 million for the quarter, compared to a loss of $56 million in the same quarter last year.

In the first half, revenues grew to $517 million, also a 15-fold jump compared to the same half last year. Net profit for the half stood at $80 million, compared to a loss of $45 million in the same period last year. The Navitas Petroleum partnership, led by Chairman and founder Gideon Tadmor and CEO Amit Kornhauser, further notes that the production volume for the half amounted to approximately 9.4 million barrels of oil, and the average price per barrel for the quarter was approximately $93. Navitas further notes that in the first year of production from Shenandoah, the project contributed a net profit before depreciation, taxes, and amortization (EBITDA) of approximately $690 million, which according to its calculations reflects a return of approximately 60% on the investment.

Facing South America

The main forward-looking news concerns South America. Navitas has operations near the Falkland Islands. Navitas acquired a Floating Production, Storage and Offloading (FPSO) facility with a production capacity of approximately 125,000 barrels per day, at a cost of approximately $125 million (in 100% terms), which will be used for the development of the Central Area (CDA) in its project named Sea Lion. The plan includes 20 wells in the first phase and 18 in the second. A Final Investment Decision (FID) is expected in the first half of 2028, and production start is expected by 2030.

Simultaneously, development of the Northern Area (NDA) continues with a budget of approximately $1.8 billion, of which approximately 18% had been utilized by the end of June, with drilling from the beginning of 2027 and production from March 2028. Following the plan, the partnership published an updated resource report prepared by NSAI, according to which the discounted cash flow (NPV10) from the Sea Lion project rose by approximately 39% to approximately $5.16 billion. The total discounted cash flow from all projects in the portfolio is estimated at approximately $9.7 billion, an increase of approximately 19%.

In addition, Navitas published a resource report for the Tiberius and Logan discoveries in the Gulf of Mexico, in which it acquired 33% in July, with a discounted cash flow of approximately $164 million for the first well in Tiberius. The discoveries are expected to connect to the production facility of the Buckskin project, and production start is set for the third quarter of 2028. In the forecast it published, Navitas expects a jump in EBITDA from approximately $759 million in 2026 to approximately $3.3 billion in 2031, with production of approximately 183,000 barrels per day. Navitas shares have risen by over 470% in three years to a market value of 16 billion shekels, in light of its successes in its oil discoveries.