Gulf Keystone Petroleum Limited · LSE:GKP
Gulf Keystone Petroleum — Scottish Oil Club (February 2019)
28 slides from Gulf Keystone Petroleum's conference presentation, Feb 7, 2019
Slide 1: Gulf Keystone Petroleum – Scottish Oil Club – Shaikan, Stirred
Gulf Keystone Petroleum Scottish Oil Club – Shaikan, Stirred 7 February 2019
Slide 2: Disclaimer
Disclaimer This proprietary presentation (the “Presentation”) has been prepared by Gulf Keystone Petroleum Limited (the “Company”). Under no circumstances may this presentation be deemed to be an offer to sell, a solicitation to buy or a solicitation of an offer to buy securities of any kind in any
Slide 3: GKP at a glance…
GKP at a glance… 31,563 bopd • The only pure-play Kurdistan player with operatorship 2018 gross production – 80% WI in Shaikan, with 40,000 bopd of production capacity 591 MMstb • Revised FDP submitted to increase capacity to 110,000 bopd Gross 2P reserves(1) – Phased and risk-managed approach $3.0/
Slide 4: Shaikan – A large field with proven production track record
Shaikan – A large field with proven production track record Key Facts Turkey • 60 km north-west of Erbil • Shaikan anticline sits at the NW end of the Zagros fold-belt Dohuk Iran Shaikan • Discovered: August 2009 Syria • Field 2P: 591 MMstb(1) Mosul • Production start: July 2013 • 10 wells drilled t
Slide 5: Kurdistan Region of Iraq, 60 km North of Erbil
Kurdistan Region of Iraq, 60 km North of Erbil 5
Slide 6: Security
Security PETROLEUM LTD, my
Slide 7: Oil & Gas industry in Kurdistan
Oil & Gas industry in Kurdistan • First discoveries date back to 1920’s – entry of independents in mid-2000’s • Oil & gas industry well established in country – Numerous high-class operators and services companies operate in the region • Oil & gas production is very important to Kurdistan economy –
Slide 8: Gulf Keystone history in Kurdistan
Gulf Keystone history in Kurdistan Jan-15 Sep-15 Jan-13/ Dec-13 Dec-14 Start of Start of Jan-18 Nov-07: Nov-10 Aug-12 Jun-13 Crude 40,000 bopd executive regular Oct-16 Crude oil Jun-18 Jul-18 Shaikan Apr-09 First Declaration FDP Jul-13 exports to production team monthly Completion sales Expansion to
Slide 9: Enduring the perfect storm…
Enduring the perfect storm… Share price performance in the lead up to restructuring in October 2016 Restructuring 40 October 2016 30 Rebased to GKP (£/share) +4% 20 (56%) 10 (64%) (93%) - Jan-15 Mar-15 May-15 Aug-15 Oct-15 Dec-15 Mar-16 May-16 Jul-16 Oct-16 GKP Kurdistan E&Ps Brent UK Listed E&Ps No
Slide 10: … difficult decisions were required to survive
… difficult decisions were required to survive Supportive investor base across debt and equity Pre-restructuring Post-restructuring Current (2016)(1) Pre-restructuring (Oct-2016)(2) (Jan-2019)(3) Total Debt: $601m $100m $100m Convertible Bonds 335 $501m Capital Deleveraging Achieved Guaranteed Reins
Slide 11: A healthy balance sheet and strong asset driving recovery
A healthy balance sheet and strong asset driving recovery Share price performance post-2016 restructuring 3.0 Today 2.5 Rebased to GKP (£/share) +69% 2.0 +64% 1.5 +27% (6%) 1.0 0.5 Oct-16 Jan-17 Apr-17 Jul-17 Oct-17 Jan-18 Apr-18 Jul-18 Oct-18 Jan-19 GKP Kurdistan E&Ps Brent UK Listed E&Ps Notes: St
Slide 12: Top ranking performance in 2018
Top ranking performance in 2018 Share price performance on London Stock Exchange 2018 Kurdistan E&P Performance (rebased to US$) 80% 60% 40% 20% -- (20%) (40%) (60%) (80%) Note: 2018 share price performance of London Stock Exchange energy sector companies with market cap >£50m in January 2018 Source
Slide 13: Shaikan, Stirred….
Shaikan, Stirred…. 13
Slide 14: Subsurface schematic
Subsurface schematic Illustrative Shaikan cross section Cretaceous Very heavy or bituminous oil 2P: 3 MMstb1) / 2C: 53 MMstb1) STOIIP: 1.4 billion barrels1) Jurassic Heavy oil with 14 - 20° API 2P: 544 MMstb2) / 2C: 80 MMstb1) 3 Shards! STOIIP: 5.5 billion barrels1) Triassic Light oil with 38-43° AP
Slide 15: Currently producing from fractured Jurassic carbonate reservoirs
Currently producing from fractured Jurassic carbonate reservoirs Structural depth map and section of Jurassic reservoirs • Over 57 MMstb produced to date • Areal extent of the Jurassic culmination of ca.135km2 • Substantial hydrocarbon column – ca.950m • API ranges from 14 to 20° API • Jurassic alon
Slide 16: Subsurface challenges of a giant fractured carbonate field
Subsurface challenges of a giant fractured carbonate field Pre-development phase 2009 Subsurface studies 2018 Development phase • Seismic • Seismic / structural history – Poor quality imaging – Acquired 2D/3D and VSPs – Low confidence mapping – Interpretation tied to surface geology – Complex struct
Slide 17: Cracking the fracture porosity code
Cracking the fracture porosity code Full field DFN history match Faults interpreted and and material balance re- geomechanically modelled confirm porosity and producing fracture heat maps permeability Fractures characterised Drill Well Pressure [psia] 2150 2050 Fracture Porosity Liquid rate [STB/D]
Slide 18: Shaikan-1 core
Shaikan-1 core 18
Slide 19: Resilient production
Resilient production • 2018 gross production at 31,563 bopd – at top end of 27,000-32,000 bopd guidance • Over 57 MMstb produced to date Pressure gages End of Export Start SH-1 40 retrieval domestic pipeline workover & other campaign sales disruptions well maintenance 35 32.9 33.2 32.8 33.1 33.5 32.
Slide 20: Bringing Shaikan oil to market
Bringing Shaikan oil to market 20
Slide 21: Trucking – a reliable means of export
Trucking – a reliable means of export 21
Slide 22: …but by mid-2019 all production will be via pipeline!
…but by mid-2019 all production will be via pipeline! 22
Slide 23: Right of way and stringing of PF-1 pipeline in the lowlands
Right of way and stringing of PF-1 pipeline in the lowlands 23
Slide 24: Shaikan Field Development Plan
Shaikan Field Development Plan • Revised FDP submitted for approval to the MNR in October 2018 – Expansion to 55,000 bopd already underway – First four wells of drilling campaign to be completed in Q1 2020 • New intermediary phase after 75,000 bopd: Triassic pilot – Staged approach further de-risks
Slide 25: Shaikan 55,000 bopd expansion underway
Shaikan 55,000 bopd expansion underway • On track with facilities upgrade completion in 2019; well capacity in Q1 2020 – Workover rig at SH-1 to install larger bore tubing, then onto SH-3 – New Jurassic well (SH-H) to spud in March Atrush pipeline New Jurassic well (4x) ESP in existing well (3x) SH-
Slide 26: HSSE
HSSE 12 10 TRIR and LTIR (Total Recordable Incident Rate & Lost Time Incident Rate) 2014- GKPI Lagging Indicators showing year on year improvement 2019 One Lost time incident in July, 2018 z 3 4 5 7.56 181 151 0.75 168 0.53 0 0.75
Slide 27: Outlook • Operational Excellence • Growth
Outlook • Operational Excellence – Safe operations – Delivery of project milestones – Continued disciplined cost control • Growth – Deliver the 55,000 bopd expansion project • Jurassic drilling campaign, workovers, facilities debottlenecking, PF-1 tie-in – Meet 2019 gross production guidance of 32,0
Slide 28: Questions? Thank you
Questions? Thank you More resources are available at: www.gulfkeystone.com
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