Genel Energy Plc · LSE:GENL
Genel Energy — Shareholder Meeting (December 2019)
18 slides from Genel Energy's shareholder meeting presentation, December 2019
Slide 1: A socially responsible contributor to the global energy mix
A socially responsible contribu or to” the global energy mix “te ae
Slide 2: What you need to know
we WHAT YOU NEED TO KNOW GROWING CASH GROWING PORTFOLIO GROWING DIVIDEND * Genel generates material and sustainable free cash flow - $121 million in free cash flow in the first 9 months of 2019 — Net cash position of $115 million * Genel has material growth opportunities, with significant near- term
Slide 3: A stable operating environment
mam A STABLE OPERATING ENVIRONMENT Dra eeranes : * The Kurdistan Region of Iraq is safe and secure — Genel has never had a single day of production downtime due to security issues * Genel has received payments for production since September 2015 (Aiewre Energy Investor presentation - December 2019 3
Slide 4: About Genel Energy - focused on delivery
ma ABOUT GENEL ENERGY - FOCUSED ON DELIVERY * Genel aims to be a world-class creator of shareholder value by: 36,500 bopd $121 million first 9 months 2019 first 9 months 2019 - Growing cash-generative production through net production free cash flow rapid development and a disciplined use of capital
Slide 5: Generating cash
wm GENERATING CASH NET CASH * Cash is central to all business and activity ($ MILLION) decisions 150 - Optimise activity to achieve high margin returns 100 — Mitigate downside risk through low capital intensity 50 3 appraise / develop model and targeted capital a | - allocation (50) * Genel working
Slide 6: Robust production
=a ROBUST PRODUCTION * Tawke PSC (25% working interest) — Gross production of over 120,000 bopd from the Tawke and Peshkabir fields, with the operator expectation that this is sustainable in 2020 — Gas from Peshkabir to be used to boost Tawke field recovery — Benefits from enhanced revenues under th
Slide 7: Investing in growth
wm INVESTING INGROWTH * Organic growth from existing portfolio provides the opportunity to double production - Appraise/develop model with DNO at Peshkabir generated material cash flow even when increasing production - Working with Chevron, Sarta provides opportunity to leverage this model on potent
Slide 8: Returning capital to shareholders
aa RETURNING CAPITAL TO SHAREHOLDERS * While investing in these opportunities, Genel will USE OF H1 2019 PROCEEDS generate sufficient cash to pay a material and ($ MILLION) progressive dividend 200 ¢ FY2019 growth capital allocation decisions 180 = Dividend - Sarta: to add to production in 2020 eo -
Slide 9: M&A - what we look for
me M&A - WHAT WE LOOK FOR * Cash-generation drives our strategy ¢ New business activity aims to ensure cash flow generation grows over long-term * Sarta and Qara Dagh the first step — Sarta alone has the potential to replace all maturing production and cash flow * Focus is on discovered resources, p
Slide 10: Our focus on ESG
=m OUR FOCUS ON ESG Zero lost time or loss of containment incidents in 2019 — Four years since any incident at Genel operations, TTOPCO certified 5* by British Safety Council * Reducing emissions - flares out at Peshkabir — Gas management programme underway 60% of all waste from TTOPCO is recycled —
Slide 11: Outlook and growth catalysts
=z OUTLOOK AND GROWTH CATALYSTS ¢ Material cash generation ongoing, even as expenditure increases on growth assets * Sarta production underway in middle of 2020 * Qara Dagh well set to spud in H1 2020 ¢ Potential agreement on Bina Bawi unlocks material value ¢ Farm-out process on Somaliland underway
Slide 12: Sarta - technical overview
ae SARTA - TECHNICAL OVERVIEW Tm KRI Licenses lm Genel Energy Licenses * Hydrocarbons discovered in all classic KRI reservoir intervals, Tertiary to Triassic — P50 gross unrisked resource estimate of c.500 MMbbIs — Unrisked gross mid case resources relating to the Jurassic Mus-Adaiyah reservoir only
Slide 13: Sarta - delivering Phase 1A
— < a te eee SARTA —DELIVERING PHASE 1A Complete bridging engineering A Execute LOM contract ay . oe, ~ » M % ~. ~~. ~ y . = ~ = ~ oh % Sarta site
Slide 14: Qara Dagh - technical overview
m= QARA DAGH - TECHNICAL OVERVIEW * Qara Dagh prospect first tested by vertical exploration well QD-1 in 2011 - drilled off structure — Reservoir was encountered much deeper than prognosed due to incorrect view of the geology — Operational issues compromised flow potential — QD-1 well nonetheless te
Slide 15: Select well location
Select well location a Tender for * 2 X ¥ »~ Commercial Flow Rates? ‘a f : Oe +s : : oa Re * bi) Qdra‘Dagh:
Slide 16: Bina Bawi - commercial discussions progressing
== BINA BAWI - COMMERCIAL DISCUSSIONS PROGRESSING * Active commercial discussions with KRG ongoing - KRG and Company are aligned on Phase 1 plan: - Integrated upstream/midstream development plan - 250-300 MMscfd raw gas processing capacity - Accelerated oil development, with a portion of revenues su
Slide 17: African exploration
me AFRICAN EXPLORATION * Somaliland - seismic interpretation of new 2018 vintage 2D seismic data now | completed, current focus on eastern Blocks | SL10B13 — Confirms our longstanding view that the block has significant hydrocarbon potential — Further strengthens the comparison with prolific Yemeni
Slide 18: For further information please contact investor relations
Forfurther information please contact investor relations ~ Andrew Benbow, Head of Communications andrew.benbow@genelenergy.com