Gulf Keystone Petroleum Limited · LSE:GKP
Gulf Keystone Petroleum — Pareto Securities' 27th Energy Conference 2020
20 slides from Gulf Keystone Petroleum's conference presentation, Sep 16, 2020
Slide 1: Pareto Securities' 27th Energy Conference
i . BU GULF KEYSTONE PETROLEUM L-——— Pareto Securities’ | Ys > ~ 27th Energy Conference 16 September 2020
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: Well positioned to deliver long-term growth potential
Well positioned to deliver long-term growth potential Actively managing impact of COVID-19 and working to protect our staff = GKP operator (80% WI) of Shaikan in Kurdistan Days LTI-Free " Shaikan operations continue safely and reliably * 35,000 - 36,000 bopd 2020 gross production guidance MMst Reser
Slide 4: Shaikan overview
Shaikan overview
Slide 5: GKP - Operator of the Shaikan Field
GKP - Operator of the Shaikan Field A giant field with proven production track record Field overview Key information (gross figures) " One of the largest fields in Kurdistan Region of Iraq by reserves and production = Cumul. production to date >75 MMstb * Steady gross prod. at c.36,000 bopd; pressur
Slide 6: Half year 2020 highlights
Half year 2020 highlights GKP remains well positioned to deliver long-term potential of Shaikan Field = Shaikan operations continue safely and reliably — no LTlIs # Actively managing impact of COVID-19 and working to protect our staff « Shaikan continues to perform well = 37,159 bopd - up >25% vs H1
Slide 7: Growth activities suspended in March
Growth activities susoended in March GKP was on track to deliver 55,000 bopd in Q3 2020 Key » Wells e Facilities = Shaikan flowlines— Export pipeline —= Villages Block licences Ti _ River network i & = = 7 NSN t ;- - o| 125 25 6. xionetsie ’ 4 CY eee ; tS nn ES Aa * Facilities debottlenecking to rea
Slide 8: Continued strong production operations
Continued strong production operations Effectively managing the impacts of COVID-19 * Steady and reliable production - YTD gross production of 36,272 bopd " 2020 gross production guidance of 35,000 - 36,000 bopd " GKP preparing to deliver near-term production growth opportunities * Quick payback, c.
Slide 9: Following best practice ESG
Following best practice ESG Doing the right thing, acting responsibly Environment Sustainability / Societal Governance = Target to more than halve CO, emissions from operations with the implementation of the Shaikan Field Development Plan = Effective waste management and remediation of inactive dril
Slide 10: Financial strategy
Financial strategy
Slide 11: Half year financial highlights
Half year financial highlights Strong underlying performance overshadowed by oil price declines * Oil price decline impact partially offset by increased production and cost reductions * Higher DD&A, related to increased production, contributed to loss after tax Revenue Adjusted EBITDA Profit/(Loss)
Slide 12: Continued tight focus on cost control
Continued tight focus on cost control On track to deliver 2020 cost reduction guidance ¥ Guidance: Opex USS$2.7 - 3.1/bbl * H1 2020 Opex US$2.6/bbl ¥ Guidance: Opex and G&A savings of >20% compared to H1 2019; 30% run-rate *" Completed workforce reduction by c.40%, including >60% of expatriates "= H
Slide 13: Crude oil payments
Crude oil payments Consistent oil sales receipts over last five months * Since March, KRG honoured commitment to pay for oil sales in following month * GKP in constructive dialogue with KRG to seek timely settlement of historical arrears (US$S73 million net for Nov-19 to Feb-20 oil sales) $25 ~ $20m
Slide 14: Strong balance sheet
Strong balance sheet Considerable financial flexibility to navigate uncertain times * Limited capital commitments, low-cost structure = 70% of H2 2020 net production hedged at a floor price of US$35/bbI * Full upside to price increases * Cash balance of US$140 million” = US$100 million debt not due
Slide 15: Outlook
Outlook
Slide 16: Outlook
Outlook Realise long-term Shaikan potential with shareholder distributions * Deliver 2020 guidance = 35,000 - 36,000 bopd = Cost savings = Positioning to return to growth * Simple, low-cost, high-impact projects to increase gross production by c.5,000 bopd for total of c.USS3 million (gross) * Resta
Slide 17: Thank you
v7 Thank you More resources are available at: www.gulfkeystone.com > Lc \ kJ
Slide 18: Appendix - Key historical financials
Appendix - Key historical financials H1 2020 H1 2019 FY 2019 FY 2018 FY 2017 Gross production (bopd) 37,159 29,362 ; 32,883 31,563 35,298 Brent") (USS/bbI) 40.2 66.1 | 64.3 713 54.1 Discount (US$/bbI!) 21.1 21.7 | 21.7 22.3 20.3 Realised price (USS/bbl) 19.1 44.8 : 42.9 49.0 34.6 Revenue (USSm) 49.9
Slide 19: Appendix - Export route
Appendix - Export route = @ e TALLAFAR ogy. — cFipeines — International Border © MM Shaikan Licence — KRG -raqi Forces Demarcation ‘Sowcea.Esi Arbus D8,U308,NGA NASA CGIAR, NAobion Geodatesyrelen,Riiswcterstac, BA, Gaolaret FEMA Into a *" MNR currently controls marketing and exports » Shaikan crude
Slide 20: Appendix - Vision to develop Shaikan remains
Appendix - Vision to develop Shaikan remains Phased approach provides flexibility to time capital investment = No further expansion investment until outlook improves = Gas management plan revised following result of SH-9 well Triassic expansion * Revised FDP to be submitted in due course for MNR app
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