Gulf Keystone Petroleum Limited · LSE:GKP
Gulf Keystone Petroleum — Investor Presentation (May 2014)
36 slides from Gulf Keystone Petroleum's investor presentation, May 2014
Slide 1: Investor presentation May 2014
Investor presentation May 2014
Slide 2: Company overview and investment strengths
Company overview and investment strengths Asset portfolio OIL infrastructure and monetisation Financing and work program supplementary information
Slide 3: A leading Kurdistan independent E&P company
A leading Kurdistan independent E&P company • Public company, moved to Standard Segment of Official List in March 2014 • One of the largest acreage holders in Kurdistan, 1,632 km 2 across four contiguous blocks • All 2P reserves and majority of contingent resources within GKP’s operated assets Shaik
Slide 4: Track record of growth in Kurdistan
Track record of growth in Kurdistan 2007-08 2009-10 2011-12 2013 Nov 2007 Jul 2009 Jan – Dec 2011 Jan 2013 Awarded PSCs for Shaikan and Sheikh Adi and Ber Bahr PSCs 5-well appraisal campaign for Submitted Shaikan FDP Akri-Bijeel awarded Shaikan discovery Feb 2013 Aug 2009 Aug 2012 Discovery made on
Slide 5: Proven drilling track record
Proven drilling track record Shaikan-1 Bijell-1 Shaikan-3 Shaikan-2 Shaikan-4 Shaikan-5 Sheikh Adi-2 Bakrman-1 Ber Bahr-1 Discovery Discovery Appraisal Appraisal Appraisal Appraisal Discovery Discovery Discovery Aug-09 Mar-10 Jan-11 Mar-11 Dec-11 Dec-11 Nov-12 Feb-13 May-13 Spud Spud Spud Spud Spud
Slide 6: World scale assets in highly prospective basin
World scale assets in highly prospective ibasin Key assets • Kurdistan a highly prospective oil province where approximately 45 international oil companies currently operate Blocks WI Diluted Operator Partner • 5 discoveries across 4 blocks in the Kurdistan Region of Iraq Shaikan(1) 75% 51% (3) GKP
Slide 7: Reserves and resources summary
Reserves and resources summary • 12,506 mmbbls of gross hydrocarbons in place Reserves and resources Net, diluted WI to GKP • Gross 2P + 2C of 1,219 mmbbls GKP diluted STOIIP/GIIP Oil (mmbbls) Gas (bcf) mmboe (1) WI Shaikan 54.4% (2) 5,013 537 5,103 • Net 2P NPV(10) of US$1bn (Phase 1 development on
Slide 8: Visible growth in production and cash flows
Visiible growth in production and cash flows • Approved FDP envisages a phased development of the Shaikan Shaikan production capacity (gross, kbopd) field 120 34 100 100 • Shaikan commercial production commenced in July 2013, export Expected Q1 2016 deliveries in December 2013 and sales in January 2
Slide 9: Strong stakeholder relationships
Strong stakeholder relationships Stakeholder relationships • Company fosters and maintains strong contacts within, and transparent and constructive relationships with the KRG, the MNR and other Kurdistan oil and gas industry participants • 93% of employees are Kurdish nationals, receiving regular tr
Slide 10: Company strategy
Company strategy Ramp-up commercial oil production from Shaikan Reinvestment of cash flows Become a cash generating Increase reserves and production business and maintain financial through further exploration and flexibility appraisal across the portfolio Monetisation proceeds Exit non-core assets/o
Slide 11: Key investment strengths
Key investment strengths World scale assets in highly prospective basin Proven drilling track record Visible growth in production and cash flows from Shaikan Stable, highly experienced management Strong stakeholder relationships 10
Slide 12: Asset portfolio
Company overview and investment strengths Asset portfolio OIL infrastructure and monetisation Financing and work program supplementary information
Slide 13: Shaikan background
Shaikan ibackground Gulf Keystone net WI (fully diluted)(1) 75% (54.4%) • Situated 85 km to the north-west of Erbil Operator GKP • Discovered in August 2009, the Shaikan field is an anticline at the north-west end of the Zagros Foldbelt MOL (20%) Partners(2) TKI (5%)(3) • To date a total of nine wel
Slide 14: Shaikan field development
Shaikan field development Shaikan FDP overview Shaikan development area • A field of Shaikan’s magnitude will require significant investments over a multi-year phased development • As part of the approved Phase 1 development, GKP plans to increase Shaikan production and sales from the near-term targ
Slide 15: Shaikan development concept
Shaikan development concept International border Turkey Syria Ber Bahr Gulf Keystone block Sheikh Adi Gulf Keystone operated block Discovery Export pipeline Shaikan tie-in pipeline SH-4 SH-1 & SH-3 Shaikan development flowline Well PF-1 SH-7 Planned well SH-8 SH-10 SH-2 Production facility SH-5 SH-6
Slide 16: Shaikan development status
Shaikan development status First production facility completed – PF-1 Second production facility commissioned – PF-2 • Production capacity of 20 kbopd. Commercial production • Modular design similar to PF-1 commenced in July 2013 • PF-2 commissioned with Shaikan-2 and -5 wells tied-in • Shaikan-1, -
Slide 17: Expected Shaikan project schedule
Expected SHAIKAN PROJECT SCHEDULE Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2013 2014 2015 2016 Drilling Existing wells SH-7 New rig SH-9 SH-11 SH-12 SH-13 SH-14 Production Facilities Construction & PF 1 commissioning PF 2 Construction & commissioning PF 3 Construction & commissioning PF central accommodation Constru
Slide 18: Shaikan Phase 1 development – CPR production profile
Shaikan Phase 1 development – CPR production profile Shaikan Phase 1 production profile (gross)(1) Key parameters(1) 100 450 Low Best High Number of wells 26 26 26 90 400 Maximum oil rate per well (kbopd) 3.0 4.0 4.5 Field oil plateau production rate (kbopd) 67.5 90.0 90.0 80 350 Plateau length (yea
Slide 19: Sheikh Adi
Sheikh Adi • Located to the west of and on trend with the Shaikan structure Sheikh Adi Block Gulf Keystone net WI(1) 80.0% • The field is a faulted structure with a single major fault with Jurassic oil bearing intervals in both the hanging wall and the footwall Operator GKP Partner KRG (20%) • Sheik
Slide 20: Ber Bahr
Ber Bahr • Ber Bahr lies to the north-west of and on trend with the Shaikan Ber Bahr Block and the Sheikh Adi blocks Gulf Keystone net WI 40.0% Operator Genel • Genel operated (40% working interest ) with GKP working interest of 40% and KRG with 20% (carried by Genel) Genel (40%), Partners KRG (20%)
Slide 21: Akri Bijeel
Akri Bijeel Akri Bijeel Block • Akri Bijeel is a large block located to the east of the Shaikan block Gulf Keystone net WI (fully diluted) 20% (12.8%) • MOL operated (51.2%) with GKP diluted working interest of 12.8%, Operator MOL KRG interest of 20% and 3rd party interest of 16% (all diluted) Partn
Slide 22: Oil infrastructure and monetisation
Company overview and investment strengths Asset portfolio OIL infrastructure and monetisation Financing and work program supplementary information
Slide 23: KRG infrastructure/oil monetisation gaining momentum
Krg infrastructure/oil monetisation gaining momentum • Exports to Turkish Mediterranean ports currently via trucks: – A safe proven route: in Q1 2014 in excess of 836,000 bbls of oil have been exported – No interruptions; first payment received in May 2014 • Two main oil export pipelines both headed
Slide 24: Oil marketing and transportation
Oil marketing and transportation Oil marketing • Marketing strategy being developed in co-operation with the Ministry of Natural Resources • Current stable production and sales level of 16kbopd (gross) from PF-1 • Export deliveries by truck commenced in December 2013 and export sales in late January
Slide 25: Financing and work program
Company overview and investment strengths Asset portfolio OIL infrastructure and monetisation Financing and work program supplementary information
Slide 26: Financing plan
Financing plan Fully funded for the ongoing Shaikan development and general corporate purposes • Completion of Phase ‘0’ development of the Shaikan field to achieve planned gross production of 40 kbopd by the end of 2014 • Along with expected cash flows from oil sales, finance further development of
Slide 27: Capex schedule
Capex schedule 2014 work 2014 expansionary (US$m net to GKP) program 2015 Comments (SH-66kbopd) (SH-40kbopd) Shaikan Completion of SH-7 and PF-1 and tie in PF 1 (including SH-7) 54.3 - - of associated wells Drilling of SH-9, completion of PF-2 and PF 2 (including SH-9) 47.1 - 1.0 tie in of associate
Slide 28: Summary
summary • Move-up to London Stock Exchange Official List at the end of March 2014 A leading Kurdistan • Highly experienced management with strong track record and relationships with regional authorities independent E&P • One of the largest acreage holders in Kurdistan - 1,632 km 2 across four contig
Slide 29: Supplementary information
Company overview and investment strengths Asset portfolio OIL infrastructure and monetisation Financing and work program supplementary information
Slide 30: Shaikan Phase 1 – CPR 2P Wells
Shaikan Phase 1 – CPR 2P Wells • Shaikan Phase 1 is focused on the first 26 development wells targeting 299 mmbbls of 2P reserves Flowline 29
Slide 31: Shaikan Full field development – beyond Phase 1
Shaikan Full field development – beyond phase 1 • Shaikan Full Field Development envisages approximately 109 wells targeting 1,001 mmbbls of 2P + 2C reserves and contingent resources • Further 2P reserves are expected as contingent resources are matured into reserves. Additionally total 2P + CR expe
Slide 32: Shaikan – horizons and contacts
Shaikan – horizons and contacts 31
Slide 33: Shaikan PF-1 production history
Daily oil production (kb opd) - 10,000 12,000 14,000 16,000 2,000 4,000 6,000 8,000 Jul-13 Jul-13 Jul-13 Jul-13 Aug-13 Aug-13 Aug-13 Sep-13 Sep-13 Sep-13 Oct-13 Oct-13 Oct-13 Nov-13 shaikan pf-1 production history Nov-13 Cumulative production Nov-13 Dec-13 Dec-13 Dec-13 Jan-14 Jan-14 Jan-14 Feb-14 F
Slide 34: Shaikan PSC terms
Shaikan PSC terms Shaikan oil PSC Sensitivity analysis Gross revenue • Returns are highly insensitive to capex and opex 100% Royalty • Higher costs keep R-Factor lower for longer 10% Net revenue 90% Oil price +/-10% (10.6)% 10.4% Cost recovery Profit oil 40% 60% Unused cost recovery Oil production +
Slide 35: Disclaimer
Disclaimer By attending the meeting where this presentation is made, or by reading the presentation slides, you agree to be bound by the following limitations: The inf ormation in this document has been prepared by Gulf Keystone Petroleum Limited (the "Company") solely for use at a presentation to b
Slide 36: Investor presentation
Investor presentation May 2014
Gulf Keystone Petroleum — Investor Presentation (May 2014) on 6ix