Gulf Keystone Petroleum Limited · LSE:GKP

Gulf Keystone Petroleum — Technical Presentation (March 2014)

25 slides from Gulf Keystone Petroleum's technical presentation, Mar 13, 2014

  1. Slide 1: Shaikan: In Transition - Oil in Place to Reserves

    Shaikan IN TRANSITION - OIL IN PLACE TO RESERVES Todd Kozel, CEO Ewen Ainsworth, Finance Director John Gerstenlauer, COO John Stafford, Manager - Geoscience and Geophysics 13 March 2014

  2. Slide 2: A leading Kurdistan independent E&P company

    A leading Kurdistan independent E&P company 2 • One of the largest acreage holders in Kurdistan, 1,632 km2 across four contiguous blocks • Five discoveries since 2009 with four declared commercial, including Shaikan • Shaikan Field Development Plan (“FDP”) approved by the Kurdistan Regional Governme

  3. Slide 3: Summary of CPR

    Summary of CPR 3 Shaikan block only Across the Company’s portfolio • STOIIP 9,215 MMstb • Aggregate STOIIP 12.500 MMstb • Jurassic STOIIP 6,194 MMstb • Aggregate 2P + 2C Over 1.2 bn barrels of recoverable oil • 2P 299 MMstb • Sheikh Adi STOIIP 2,256 MMstb 2C 152 MMstb • 2C 702 MMstb • Ber Bahr STOII

  4. Slide 4: Gross and Net OIP, reserves & resources

    Gross and Net OIP, reserves & resources 4 Gross Net, diluted WI to GKP • 12,506MMstb of gross hydrocarbons in GKP WI (diluted) Oil (mmbbls) Gas (bcf) Total (mmboe) (1) Oil (mmbbls) Gas (bcf) Total (mmboe) (1) place STOIIP (Best) Shaikan 54.4% 9,215 988 9,380 5,013 537 5,103 Sheikh Adi 80.0% 2,256 -

  5. Slide 5: Proven drilling track record

    Proven drilling track record 5 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 Spu

  6. Slide 6: Shaikan: Horizons and contacts

    Shaikan: Horizons and contacts 6 Source: GKP

  7. Slide 7: Shaikan: Oil in place (CPR)

    Shaikan: Oil in place (CPR) 7 • Total STOIIP (Discovered + Undiscovered) = 13.265 MMstb • Shaikan Phase 1 development is targeting the Sargelu, Alan, and Mus formations only in the Jurassic interval • Current importance of the Jurassic but there is significant undiscovered resource in the Cretaceous

  8. Slide 8: Shaikan development concept

    Shaikan development concept 8 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

  9. Slide 9: Shaikan: Phase 1 – CPR 2P Wells

    Shaikan: Phase 1 – CPR 2P Wells 9 • Shaikan Phase 1 is focused on the first 26 development wells targeting 299MMstb of 2P reserves Flowline Source: GKP

  10. Slide 10: Shaikan: Full field development: beyond phase 1

    Shaikan: Full field development: beyond 10 phase 1 • Shaikan Full Field Development envisages approximately 109 wells targeting 1,001MMstb of 2P + 2C reserves and contingent resources • Further reserves are fully expected in time Full field Flowline development well Well locations are approximate So

  11. Slide 11: Upside to CPR: Oil Water Contact

    Upside to CPR: Oil Water Contact 11 • Oil was successfully tested from the lower Jurassic in Shaikan-4 at 2,787m measured depth. This Butmah test flowed dry oil. Given the mobility of oil and water in Shaikan, the oil water contact is highly likely to be significantly below this level • Evaluation o

  12. Slide 12: Upside to CPR: Fractures

    Upside to CPR: Fractures 12 • Typical recovery factor from fractures are high ~65% and are therefore very important • The Company has put considerable effort into analysing fracture properties • Uncertainty remains on the exact nature of fracture system • The CPR adopts a 0.4% fracture porosity; the

  13. Slide 13: Upside to CPR: Exploration

    Upside to CPR: Exploration 13 The CPR does not address upside associated with: • Deeper Triassic or Permian prospectivity in all blocks. This is currently being targeted by Shaikan-7 • Exploration prospects in the northern part of the Sheikh Adi block and possible field extensions • Additional explo

  14. Slide 14: CPR: Other assets

    CPR: Other assets 14 • STOIIP 2,256 MMstb (discovered) Sheikh Adi 657 MMstb (undiscovered) 2,913 MMstb (total) • 2C (Jurassic) 152 MMstb • Indicative Jurassic recovery factor 8% (scope for upward revision) • Further prospectivity identified • STOIIP 656 MMstb (discovered) Ber Bahr 102 MMstb (undisco

  15. Slide 15: Shaikan development status

    Shaikan development status 15 • First production facility completed • Second production facility nearing completion • Commercial production commenced in July 2013 • Electrical and instrumentation work ongoing • Shaikan 1, 3 and 4 tied to the facility • Shaikan 2, 5, 10 wells completed, flowlines bei

  16. Slide 16: Unlocking further potential

    Unlocking further potential 16 • The quantities of hydrocarbons assigned as in-place, reserves and resources in the CPR are in broad agreement with the Company’s own findings • The Company has adopted a conservative approach in its current estimates of quantities of hydrocarbons in its assets • CPR

  17. Slide 17: Thank you

    THANK YOU setaotecst.\Ywy

  18. Slide 18: Shaikan: In Transition - Oil in Place to Reserves

    Shaikan IN TRANSITION - OIL IN PLACE TO RESERVES 13 March 2014

  19. Slide 19: Disclaimers

    disclaimers 19 The contents of these presentation materials and the accompanying verbal presentation (“Presentation 85 FSMA. These Presentation Materials are exempt from the general restriction set out in section 21 FSMA on the Materials”) has not been approved by an authorised person within the mea

  20. Slide 20: Disclaimers

    disclaimers 20 Investing in any shares of Gulf Keystone Petroleum Limited (“the Company”) involves significant risks, and is suitable only for sophisticated investors who fully understand such risks and are capable of bearing any losses which may arise Need for additional capital therefrom (which ma

  21. Slide 21: Disclaimers

    disclaimers 21 Prospects in Kurdistan certain technical services and, although the Company has no current plans or agreements to do so, it may retain such Various international oil and gas companies have explored prospects throughout Kurdistan with varying degrees of companies to provide other servi

  22. Slide 22: Disclaimers

    disclaimers 22 Tax treatment The oil and gas industry historically has experienced periods of rapid cost increases. Increases in the cost of exploration Under current Bermuda law, the Company is not subject to tax on its income or capital gains, and its dividend payments and development would affect

  23. Slide 23: Disclaimers

    disclaimers 23 Oil and gas pricing and demand consequences of any terrorist attacks or any armed conflicts which may result are unpredictable, and the Company The price of and demand for oil and gas is highly dependent on a number of factors, including both domestic and may not be able to foresee ev

  24. Slide 24: Disclaimers

    disclaimers 24 Environmental regulation The Company’s interests and business are subject to the risk of litigation The Group’s operations are subject to environmental regulations promulgated by the Algerian and Kurdistan From time to time, the Company may be subject to litigation relating to its int

  25. Slide 25: Disclaimers

    disclaimers 25 Such factors may negatively affect the market price of the shares. In addition, the risks described elsewhere in this Risk Factors section could materially and adversely affect the price of the shares. AIM is less liquid and more volatile than other major exchanges. The sole trading m

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