Genel Energy PLC · LSE:GENL
Genel Energy — Investor Day (October 2012)
60 slides from Genel Energy's investor day presentation, October 2012
Slide 1: A New Force in E&P
GENELCS\Presentations\120223_Capital Markets Day\12 Capital Markets Day Presentation (EM 20120213).pptx A New Force in E&P October 2012
Slide 2: Disclaimer
GENELCS\Presentations\120223_Capital Markets Day\12 Capital Markets Day Presentation (EM 20120213).pptx DISCLAIMER These materials are being supplied to you by Genel Energy plc (the “Company”) solely for your information and for use at this presentation. All numbers and charts included in this prese
Slide 3: Agenda
GENELCS\Presentations\120223_Capital Markets Day\12 Capital Markets Day Presentation (EM 20120213).pptx Introduction Existing KRI Production KRI Developments High Impact Exploration Financial Framework Summary Q&A 3
Slide 4: Progress in the First Year
GENELCS\Presentations\120223_Capital Markets Day\12 Capital Markets Day Presentation (EM 20120213).pptx PROGRESS IN THE FIRST YEAR Material operational progress in the Kurdistan Region of Iraq (KRI) fully funded by operational cashflow Successful appraisal programme delivered significant reserve
Slide 5: Political Momentum Building
GENELCS\Presentations\120223_Capital Markets Day\12 Capital Markets Day Presentation (EM 20120213).pptx POLITICAL MOMENTUM BUILDING On the ground in KRI Production capacity increasing from 150,000bpd last year to 250,000 today Significant infrastructure to Turkey under construction IOCs ente
Slide 6: Strategy
GENELCS\Presentations\120223_Capital Markets Day\12 Capital Markets Day Presentation (EM 20120213).pptx STRATEGY Maintain the highest level of corporate governance Continue to fund Kurdistan Region of Iraq (KRI) development and exploration with operating cashflow Create value with the drill bi
Slide 7: The Management Team
GENELCS\Presentations\120223_Capital Markets Day\12 Capital Markets Day Presentation (EM 20120213).pptx THE MANAGEMENT TEAM CEO Tony Hayward President Mehmet Sepil CFO CCO COO, COO, Strategy & HSSE General HR Government Africa Kurdistan BusDev Counsel Affairs Region of Iraq Julian Murat John Charles
Slide 8: Agenda
GENELCS\Presentations\120223_Capital Markets Day\12 Capital Markets Day Presentation (EM 20120213).pptx Introduction Existing KRI Production KRI Developments High Impact Exploration Financial Framework Summary Q&A 8
Slide 9: Taq Taq – Development on Track
GENELCS\Presentations\120223_Capital Markets Day\12 Capital Markets Day Presentation (EM 20120213).pptx TAQ TAQ – DEVELOPMENT ON TRACK Development On track to deliver 200,000 bopd gross production capacity Average Production Production Capacity in 2014 200,000 Current gross production capacity 1
Slide 10: Taq Taq to Khurmala Pipeline Nears Completion
GENELCS\Presentations\120223_Capital Markets Day\12 Capital Markets Day Presentation (EM 20120213).pptx TAQ TAQ TO KHURMALA PIPELINE NEARS COMPLETION Taq Taq to Khurmala pipeline operational in December Initial capacity of 150,000 bopd with ability to grow to over 200,000 bopd Joins Taq Taq to
Slide 11: Tawke Update
GENELCS\Presentations\120223_Capital Markets Day\12 Capital Markets Day Presentation (EM 20120213).pptx TAWKE UPDATE On track to deliver gross production capacity of 100,000 bopd by end 2012 Average Production Production Capacity 2012 appraisal and development programme of 4 200,000 wells on goi
Slide 12: Consistently Growing Reserve Base
GENELCS\Presentations\120223_Capital Markets Day\12 Capital Markets Day Presentation (EM 20120213).pptx CONSISTENTLY GROWING RESERVE BASE Taq Taq and Tawke Gross Reserves (mmbbls) 1,918 2P CAGR 2009-2012: 27% 1,564 537 Gross 2P 1,329 1,315 Gross Possible 631 655 655 714 1,381 569 290 932 313 674 660
Slide 13: Agenda
GENELCS\Presentations\120223_Capital Markets Day\12 Capital Markets Day Presentation (EM 20120213).pptx Introduction Existing KRI Production KRI Developments High Impact Exploration Financial Framework Summary Q&A 13
Slide 14: Significant Resources Acquired
GENELCS\Presentations\120223_Capital Markets Day\12 Capital Markets Day Presentation (EM 20120213).pptx SIGNIFICANT RESOURCES ACQUIRED Bina Bawi (44%) Miran (additional 56.25%1) 220-440mmboe 2C 392mmboe 2C Contingent Resources 142 mmboe Prospective Acquisition price $415m 916 mmboe Equivalent to
Slide 15: Bina Bawi – Significant Resources Confirmed
GENELCS\Presentations\120223_Capital Markets Day\12 Capital Markets Day Presentation (EM 20120213).pptx BINA BAWI – SIGNIFICANT RESOURCES CONFIRMED Significant hydrocarbon accumulation confirmed by wells drilled to date (BB-1 and BB-3) 500-1,000 mmboe gross contingent resources (c.60% oil, 40% g
Slide 16: Bina Bawi – Appraisal Programme
GENELCS\Presentations\120223_Capital Markets Day\12 Capital Markets Day Presentation (EM 20120213).pptx BINA BAWI – APPRAISAL PROGRAMME Jurassic Depth Map Bina Bawi 4 objective Appraise Mus, Butmah and Kurra Chine; drill into Permian (TD ~4,200m) Currently drilling at 2,300m Bina Bawi-3 Well
Slide 17: Bina Bawi – Field Development
GENELCS\Presentations\120223_Capital Markets Day\12 Capital Markets Day Presentation (EM 20120213).pptx BINA BAWI – FIELD DEVELOPMENT Phased development concept Extended well test Construction underway Production expected 1Q 2013, initially from BB-3 Full field development Declaration of
Slide 18: Miran – Control of World Class Gas Field Secured
GENELCS\Presentations\120223_Capital Markets Day\12 Capital Markets Day Presentation (EM 20120213).pptx MIRAN – CONTROL OF WORLD CLASS GAS FIELD SECURED Acquisition of 26% of Miran from Heritage completed, taking Genel’s interest to 51% (pre KRG back-in) Joint operatorship established between Ge
Slide 19: Miran – Exploration and Appraisal
GENELCS\Presentations\120223_Capital Markets Day\12 Capital Markets Day Presentation (EM 20120213).pptx MIRAN – EXPLORATION AND APPRAISAL Miran West-4 Deviated well completed Miran East-1 Confirmed oil in the Upper Cretaceous Reached target depth of 1,905 metres and flowed oil at a rate of 1
Slide 20: Miran – Field Development
GENELCS\Presentations\120223_Capital Markets Day\12 Capital Markets Day Presentation (EM 20120213).pptx MIRAN – FIELD DEVELOPMENT Project engineering FEED 4Q 2012 to 2Q 2013 Gas sales Discussions with customers and infrastructure providers ongoing through 1H 2013 Target FID for initial tra
Slide 21: Turkish Gas Market
GENELCS\Presentations\120223_Capital Markets Day\12 Capital Markets Day Presentation (EM 20120213).pptx TURKISH GAS MARKET Gas Contracts and Demand (bcma) Historic growth rate 10% pa since 2000. +5% pa Continued strong growth expected in line with GDP expansion >50% of power generation currently
Slide 22: Gas Infrastructure
GENELCS\Presentations\120223_Capital Markets Day\12 Capital Markets Day Presentation (EM 20120213).pptx GAS INFRASTRUCTURE Source: The Oil & Gas Year, Kurdistan Region of Iraq (2012) 22
Slide 23: KRI Developments – Summary
GENELCS\Presentations\120223_Capital Markets Day\12 Capital Markets Day Presentation (EM 20120213).pptx KRI DEVELOPMENTS – SUMMARY World class resource base Turkish gas market Large and rapidly growing Attractive international pricing Established transmission system, short tie-in to KRI ex
Slide 24: Agenda
GENELCS\Presentations\120223_Capital Markets Day\12 Capital Markets Day Presentation (EM 20120213).pptx Introduction Existing KRI Production KRI Developments High Impact Exploration Financial Framework Summary Q&A 24
Slide 25: Exploration Strategy
GENELCS\Presentations\120223_Capital Markets Day\12 Capital Markets Day Presentation (EM 20120213).pptx EXPLORATION STRATEGY Kurdistan Region of Iraq (KRI) Drill out portfolio in the KRI Material prospects remain: Taq Taq Deep, Tawke Deep, Chia Surkh Establish high impact exploration portfol
Slide 26: Significant Exploration Resource Added
GENELCS\Presentations\120223_Capital Markets Day\12 Capital Markets Day Presentation (EM 20120213).pptx SIGNIFICANT EXPLORATION RESOURCE ADDED Chia Surkh Africa Portfolio 122mmboe Unrisked Prospective Resources 2.2 billion boe Prospective 2,850 mmboe Prospective 306mmboe gross unrisked resource Co
Slide 27: Comprehensive Exploration Program in KRI
GENELCS\Presentations\120223_Capital Markets Day\12 Capital Markets Day Presentation (EM 20120213).pptx COMPREHENSIVE EXPLORATION PROGRAM IN KRI Tawke Deep TURKEY 25% WI Ber Bahr Peshkabir Result 1Q 2013 40% WI 25% WI Side track to re-test oil Evaluation and 3D seismic zone: 2Q 2013 acquisition ongo
Slide 28: Tawke – Deep
GENELCS\Presentations\120223_Capital Markets Day\12 Capital Markets Day Presentation (EM 20120213).pptx TAWKE – DEEP TOP JURASSIC STRUCTURE MAP Genel Energy 25% working interest (DNO operator) 200mmboe gross N S unrisked mean prospective resources with 36% PoS (McDaniel 2011) Exploration well
Slide 29: Taq Taq – Deep
GENELCS\Presentations\120223_Capital Markets Day\12 Capital Markets Day Presentation (EM 20120213).pptx TAQ TAQ – DEEP Genel Energy 44% working interest Operator: TTOPCO (Genel 55%) 250mmboe gross unrisked mean prospective resources with 40% PoS (McDaniel 2011) Taq Taq 3D seismic being re- p
Slide 30: Chia Surkh
GENELCS\Presentations\120223_Capital Markets Day\12 Capital Markets Day Presentation (EM 20120213).pptx CHIA SURKH Hacıiar Lead Lower Miocene Depth Map Max Area of Genel Energy (operator) 60% working interest closure: 41.8 sq. km 300mmboe gross unrisked mean prospective Chia Surkh Prospect resou
Slide 31: KRI Drilling Programme
GENELCS\Presentations\120223_Capital Markets Day\12 Capital Markets Day Presentation (EM 20120213).pptx KRI DRILLING PROGRAMME 2012 2013 Well Q4 Q1 Q2 Q3 Q4 Miran East -1 Kewa Chirmila Chia Surkh-10 Exploration Chia Surkh-11 Tawke-Deep Taq Taq Deep Bina Bawi (4,5,6) Appraisal Miran West (6,7) Miran
Slide 32: Emerging African Exploration Portfolio
GENELCS\Presentations\120223_Capital Markets Day\12 Capital Markets Day Presentation (EM 20120213).pptx EMERGING AFRICAN EXPLORATION PORTFOLIO Offshore S. Malta: Sirte Basın Libya Analogues NW Africa: Jurassic Carbonate Area 4: Blocks 4,5,6 & 7 (75%; MOG operator) 5,700 sq km total and Cretaceou
Slide 33: Morocco – Licence Interest
GENELCS\Presentations\120223_Capital Markets Day\12 Capital Markets Day Presentation (EM 20120213).pptx MOROCCO – LICENCE INTEREST Panuke Carbonate 3Tcf Gas Margin Carbonate Margin Condensate Newfoundland-Azores FZ Transform Faults Cap Juby 250 mmbbls The same petroleum system responsible for both
Slide 34: Morocco – Main Play Types Associated with Carbonate Platform
GENELCS\Presentations\120223_Capital Markets Day\12 Capital Markets Day Presentation (EM 20120213).pptx MOROCCO – MAIN PLAY TYPES ASSOCIATED WITH CARBONATE PLATFORM Reef Margin Oil saturation 34
Slide 35: Morocco – Cap Juby Discovery Juby Maritime Block
GENELCS\Presentations\120223_Capital Markets Day\12 Capital Markets Day Presentation (EM 20120213).pptx MOROCCO – CAP JUBY DISCOVERY JUBY MARITIME BLOCK Proven petroleum system: MO-2 discovery 2,400bopd Cap Juby Juby Maritime Block gross prospective resources estimated at 800mmboe 100m water d
Slide 36: Morocco – Juby Maritime Exploration Plays
GENELCS\Presentations\120223_Capital Markets Day\12 Capital Markets Day Presentation (EM 20120213).pptx MOROCCO – JUBY MARITIME EXPLORATION PLAYS W E Mid Cretaceous Top Jurassic carbonates Top mid-Jurassic carbonates Line 83MMO-09 Line 83MMO-09 Play-Prospects Isolated platforms (define own structu
Slide 37: Morocco – Sidi Moussa Carbonate Petroleum System
GENELCS\Presentations\120223_Capital Markets Day\12 Capital Markets Day Presentation (EM 20120213).pptx MOROCCO – SIDI MOUSSA CARBONATE PETROLEUM SYSTEM N Proven petroleum system (Cap Juby) 850mmboe prospective resources Multiple carbonate draped tilted fault block structures at Jurassic level
Slide 38: Cote d'Ivoire Licence Interests
GENELCS\Presentations\120223_Capital Markets Day\12 Capital Markets Day Presentation (EM 20120213).pptx COTE D’IVOIRE LICENCE INTERESTS Proven Petroleum Systems with three main potential field size ranges in the three main plays: Submarine fans: 150-500mmbbls Main risk: reservoir presence and id
Slide 39: Malta – Licence Interests
GENELCS\Presentations\120223_Capital Markets Day\12 Capital Markets Day Presentation (EM 20120213).pptx MALTA – LICENCE INTERESTS Area 4 Petroleum Context: Triassic Rifts at ~ 5km depth Sicily Strepenosa potential Mid-Cretaceous rift- Melita Graben Age equivalent Sirte Basin Libya Early Te
Slide 40: Malta – Geological Map
GENELCS\Presentations\120223_Capital Markets Day\12 Capital Markets Day Presentation (EM 20120213).pptx MALTA – GEOLOGICAL MAP Area 4 Petroleum Context: Triassic Rifts at ~ 5km depth Sicily Strepenosa potential Steppanosa Basin Mid-Cretaceous rift- Melita Graben (Triassic / Jurassic) Age equ
Slide 41: Malta – Initial Well: Tertiary Reef Play
GENELCS\Presentations\120223_Capital Markets Day\12 Capital Markets Day Presentation (EM 20120213).pptx MALTA – INITIAL WELL: TERTIARY REEF PLAY Petroleum System to be proven Gas chimneys/effects on seismic Seabed pock marks – gas escape Several Tertiary carbonate build-ups mapped Analogou
Slide 42: Malta – Cretaceous Rifts
GENELCS\Presentations\120223_Capital Markets Day\12 Capital Markets Day Presentation (EM 20120213).pptx MALTA – CRETACEOUS RIFTS Pock Marks Sea bed variance map Cretaceous Melita – Medina Graben opens up deeper play Fault blocks and pinch out plays Source rocks – early to late Cretaceous basin
Slide 43: Somaliland – Basin Petroleum Context
GENELCS\Presentations\120223_Capital Markets Day\12 Capital Markets Day Presentation (EM 20120213).pptx SOMALILAND – BASIN PETROLEUM CONTEXT Jeza Basin Masila Basin Shabwa Basin Sana’a YEMEN n Aden ck ine Berbera Hargeisa Burao 100km ETHIOPIA City / Town NW SE Wells Genel Block Oil Seep Basin Outlin
Slide 44: Somaliland – Play Types & Work Programme
GENELCS\Presentations\120223_Capital Markets Day\12 Capital Markets Day Presentation (EM 20120213).pptx SOMALILAND – RESUME OF PLAY TYPES & WORK PROGRAMME Jurassic/Cretaceous Rift Somaliland work programme Petroleum System proven – numerous oil seeps Gravity and magnetic survey to Plays co
Slide 45: Africa – Activity Programme by Asset & Resource Target
GENELCS\Presentations\120223_Capital Markets Day\12 Capital Markets Day Presentation (EM 20120213).pptx AFRICA – ACTIVITY PROGRAMME BY ASSET & RESOURCE TARGET Gross Net Gross Net Unrisked Unrisked Unrisked Unrisked Assets W.I. Country Prospective Prospective H2 2012 H1 2013 H2 2013 H1 2014 H2 2014 H
Slide 46: Agenda
GENELCS\Presentations\120223_Capital Markets Day\12 Capital Markets Day Presentation (EM 20120213).pptx Introduction Existing KRI Production KRI Developments High Impact Exploration Financial Framework Summary Q&A 46
Slide 47: Production and Export Status
GENELCS\Presentations\120223_Capital Markets Day\12 Capital Markets Day Presentation (EM 20120213).pptx PRODUCTION AND EXPORT STATUS Production All production now sold at international prices (including Bazian) 2012 net production guidance revised up to c.45,000 bopd 2013 net production guid
Slide 48: Capital Expenditure
GENELCS\Presentations\120223_Capital Markets Day\12 Capital Markets Day Presentation (EM 20120213).pptx CAPITAL EXPENDITURE 500 $400-500m 400 300 $200-250m 200 100 86 60 67 46 0 2008 2009 2010 2011 2012E 2013E KRI Development KRI Exploration & Appraisal Africa Exploration 48
Slide 49: Capital Structure
GENELCS\Presentations\120223_Capital Markets Day\12 Capital Markets Day Presentation (EM 20120213).pptx CAPITAL STRUCTURE Continue to grow the portfolio Access selective opportunities with a bias to existing geographies Portfolio fully funded from operating cashflow Kurdistan Region of Iraq
Slide 50: Agenda
GENELCS\Presentations\120223_Capital Markets Day\12 Capital Markets Day Presentation (EM 20120213).pptx Introduction Existing KRI Production KRI Developments High Impact Exploration Financial Framework Summary Q&A 50
Slide 51: Operational Milestones for 2012/13
GENELCS\Presentations\120223_Capital Markets Day\12 Capital Markets Day Presentation (EM 20120213).pptx OPERATIONAL MILESTONES FOR 2012/13 Fourth Quarter First Quarter Second Quarter Third Quarter Fourth Quarter Test results on Ber Taq Taq deep spuds Taq Taq Deep results Chia Surkh-11 result
Slide 52: Resource Hopper
GENELCS\Presentations\120223_Capital Markets Day\12 Capital Markets Day Presentation (EM 20120213).pptx RESOURCE HOPPER One year on – October 2012 Unrisked Prospective Resources 2,073mmboe 2,850 mmboe Resource at acquisition Contingent Resources 869mmboe November 2011 916 mmboe Unrisked mean resourc
Slide 53: Building a Major E&P Company – Phases of Future Growth
GENELCS\Presentations\120223_Capital Markets Day\12 Capital Markets Day Presentation (EM 20120213).pptx BUILDING A MAJOR E&P COMPANY – PHASES OF FUTURE GROWTH 500 High impact African exploration Material positions in highly prospective frontier acreage First drilling end 2013 Africa Net resour
Slide 54: Summary
GENELCS\Presentations\120223_Capital Markets Day\12 Capital Markets Day Presentation (EM 20120213).pptx SUMMARY Leading oil and gas producer in the Kurdistan Region of Iraq Four world scale oil and gas fields with significant upside Short term high impact KRI exploration programme targeting 75
Slide 55: Agenda
GENELCS\Presentations\120223_Capital Markets Day\12 Capital Markets Day Presentation (EM 20120213).pptx Introduction Existing KRI Production KRI Developments High Impact Exploration Financial Framework Summary Q&A 55
Slide 56: Other Material
GENELCS\Presentations\120223_Capital Markets Day\12 Capital Markets Day Presentation (EM 20120213).pptx OTHER MATERIAL 56
Slide 57: The Africa Technical Team
GENELCS\Presentations\120223_Capital Markets Day\12 Capital Markets Day Presentation (EM 20120213).pptx THE AFRICA TECHNICAL TEAM COO, Peter Barnett Africa 37 years of international oil and gas exploration experience John BP, Maersk Oil and PGS Reservoir Hurst International experience in Austr
Slide 58: Kurdistan Region of Iraq – PSC Terms
GENELCS\Presentations\120223_Capital Markets Day\12 Capital Markets Day Presentation (EM 20120213).pptx KURDISTAN REGION OF IRAQ – PSC TERMS Taq Taq Tawke Miran Dohuk Ber Bahr Chia Surkh Bina Bawi Genel Paying Interest 55% 25% 38.25%1 40% 60% 75% 55% Genel Working Interest 44% 25% 38.25%1 40% 40% 60
Slide 59: Africa – Fiscal Terms
GENELCS\Presentations\120223_Capital Markets Day\12 Capital Markets Day Presentation (EM 20120213).pptx AFRICA – FISCAL TERMS Morocco Juby Maritime Morocco Sidi Moussa Cote d’Ivoire Block CI-508 Malta Area 4 Somaliland Block SL13/ 10B Fiscal Regime Royalty and Tax Royalty and Tax PSC PSC PSC Genel P
Slide 60: Genel Energy Reserves and Resources
GENELCS\Presentations\120223_Capital Markets Day\12 Capital Markets Day Presentation (EM 20120213).pptx GENEL ENERGY RESERVES AND RESOURCES Gross Resource Net Resource Unrisked Working Unrisked Risked 2P 3P 2C Prospective Interest 2P 3P 2C Prospective PoS Prospective mmboe mmboe mmboe mmboe % mmboe