Gulf Keystone Petroleum Limited · LSE:GKP
Gulf Keystone Petroleum — Investor Presentation (June 2018)
29 slides from Gulf Keystone Petroleum's investor presentation, June 2018
Slide 1: Gulf Keystone Petroleum Corporate Presentation June 2018
Gulf Keystone Petroleum Corporate Presentation June 2018
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: Gulf Keystone today
Gulf Keystone today 1 • Gross 2P + 2C resource base of 854 MMstb1) with year-to-date gross production of 32,138 bopd – on track to meet 2018 guidance (27,000 to 32,000 bopd) Operator of Shaikan – a giant • Predictable reservoir performance: steady production (underpinned by safe and reliable operati
Slide 4: Corporate Overview, Shaikan Field, Financial Review
1 Corporate Overview 2 Shaikan Field 3 Financial Review 4 Appendix
Slide 5: A leading Kurdistan independent oil & gas company
A leading Kurdistan independent oil & gas company GKP is the only pure-play Kurdistan player with operatorship Introduction to Gulf Keystone Petroleum (“GKP”) The Shaikan Field6) • Kurdistan focused independent E&P company – Incorporated in Bermuda, with offices in Erbil and London – Listed on the m
Slide 6: Gulf Keystone is in a robust financial position
Gulf Keystone is in a robust financial position Strong cash flow and solid balance sheet Strong cash flow generation Clean capital structure with low leverage (US$m)3) US$ Total monthly payments (net to 100 222 353m GKP) from January 2016 706 Net cash position of 586 35,298 2017 production (gross) U
Slide 7: Experienced management team
Experienced management team Renewed, fit-for-purpose and cohesive team to deliver the potential of Shaikan Senior management team profiles Management team with proven track record • Highly experienced management team Jón Ferrier Sami Zouari CEO CFO – Strong team with extensive and complementary skil
Slide 8: The Gulf Keystone history in Kurdistan
The Gulf Keystone history in Kurdistan Nov-07: Apr-09 Nov-10 Aug-12 Jan-13/Jun-13 Jul-13 Dec-13 Dec-14 Jan-15 Sep-15 Oct-16 Jan-18 Jun-18 Shaikan Shaikan-1 1st domestic Declaration FDP Commercial Crude 40,000 bopd Start of Start of Completion of Crude oil Expansion to PSC discovery sales of submissi
Slide 9: Kurdistan – a proven oil region
Kurdistan – a proven oil region Highly prolific oil province Overview of Kurdistan Region of Iraq • Kurdistan is the only semi-autonomous, constitutionally recognised, political region in Iraq • Relatively young oil & gas industry – first PSCs awarded in 2004 • Accessible to international oil compan
Slide 10: Committed stakeholder engagement
Committed stakeholder engagement Working with, and investing in, the community Strong HSSE track record • HSSE is a priority for GKP’s board and senior 4.0 12-Month Total Recordable Incidents Frequency (“TRIF”) Incidents per million hours worked management; integral part of day-to-day operations 3.5
Slide 11: Shaikan Field
1 Corporate Overview 2 Shaikan Field 3 Financial Review 4 Appendix
Slide 12: Shaikan – A giant field with proven production track record
Shaikan – A giant field with proven production track record Shaikan Field in brief Shaikan key information • Located ca.60km north-west of Erbil, the Shaikan Field is an • Gulf Keystone interest: 80% (58%3)) anticline sitting at the north-west end of the Zagros Fold-belt • Partner: MOL 20% • One of
Slide 13: Shaikan subsurface
Shaikan subsurface Discovered and producing reservoirs: Jurassic Structural map and section of Jurassic reservoirs • All production currently from fractured Jurassic carbonates reservoirs – 50 MMstb produced to date • Areal extent of the Jurassic reservoirs of ca.135 sq. km • Substantial oil column
Slide 14: Shaikan subsurface (cont’d)
Shaikan subsurface (cont’d) Upside from other reservoirs: Triassic & Cretaceous Illustrative Shaikan cross section Cretaceous Very heavy or bituminous oil 2P: 3 MMstb1) / 2C: 53 MMstb1) STOIIP: 1.4 billion barrels1) Burj Khalifa Jurassic See details on previous slide Triassic Light oil with 38-43° A
Slide 15: Shaikan Field: Infrastructure overview
Shaikan Field: Infrastructure overview Giant field primed for significant production ramp-up • Shaikan Field developed with PF-2 two production facilities, each with a nameplate capacity of 20,000 bopd SH-2 SH-5 SH-10 SH-11 – Capacity to grow to 55,000 bopd and subsequently to 75,000 bopd via debott
Slide 16: Export route and crude marketing
Export route and crude marketing Turkey Iran Syria Iraq • The KRG’s MNR currently controls all marketing and crude exports from Kurdistan • Majority of Shaikan crude is trucked ca.120km to Fishkhabour where it is injected in the Kurdistan export pipeline to Ceyhan as part of the Kurdish blend – The
Slide 17: Material near term production growth
Material near term production growth Realizing the potential of the giant Shaikan oil field with a phased and risk-managed approach Gulf Keystone has initiated investments to increase gross production capacity • 2018 YTD production of to 55,000 bopd during H2 2019 32,138 bopd compared to existing fa
Slide 18: Commercial update: Shaikan PSC and other matters
Commercial update: Shaikan PSC and other matters Milestones achieved regularly • The Shaikan PSC partners (MNR, GKP and MOL) have actively been in discussions to achieve commercial and contractual clarity prior to initiating the next phase of investments on Shaikan • Significant progress achieved ov
Slide 19: Amendment to the Shaikan PSC
Amendment to the Shaikan PSC Ongoing discussions with MNR and MOL • The parties of the PSC maintain active dialogue to clarify the contractual position of the Shaikan PSC and GKP anticipates the discussions to be concluded in Q3 2018 • The following Shaikan PSC terms were communicated to the market
Slide 20: Financial Review
1 Corporate Overview 2 Shaikan Field 3 Financial Review 4 Appendix
Slide 21: Financial summary
Financial summary Substantial cash generation from stable production - underpinned by a strong balance sheet Strong cash flow and robust cash position New era of profitability Unit 2014 2015 2016 2017 Production (gross) bopd 17,765 30,500 34,794 35,298 • Posted profit after-tax in 2017 Brent price1)
Slide 22: Established track record of payments
Established track record of payments Transparent invoice mechanism since signing of Crude Oil Sales Agreement early 2018 Oil export payments net to Gulf Keystone from 2016 US$m US$/bbl • Regular payment cycle established to 35 90 all operators in the area – Regular payments since September 2015 30 8
Slide 23: Track record of continued cost optimisation
Track record of continued cost optimisation Operating Expenses1) General & Administrative Expenses Operating Expenses 37 48 35 29 Bopd Bopd (US$m) 8 40,000 50 40,000 7 35,000 35,000 US$39m 40 30,000 G&A Expenses (US$m) 6 30,000 Opex per bbl (US$) 11 US$31m 5 25,000 30 25,000 US$26m 4 20,000 11 20,00
Slide 24: Gulf Keystone today
Gulf Keystone today 1 • Gross 2P + 2C resource base of 854 MMstb1) with year-to-date gross production of 32,138 bopd – on track to meet 2018 guidance (27,000 to 32,000 bopd) Operator of Shaikan – a giant • Predictable reservoir performance: steady production (underpinned by safe and reliable operati
Slide 25: Appendix
1 Corporate Overview 2 Shaikan Field 3 Financials 4 Appendix
Slide 26: Board of Directors
Board of Directors Extensive and relevant experience to drive Gulf Keystone through its next phases of growth Jaap Huijskes Jón Ferrier Sami Zouari Philip Dimmock David Thomas Garrett Soden Non-Executive Chairman Chief Executive Officer Chief Financial Officer Non-Executive Director Non-Executive Di
Slide 27: Reserves and resources summary
Reserves and resources summary Shaikan Reserves Gross Field Oil Reserves (MMstb) GKP net (WI 58%)1) Reserves (MMstb) Formation 1P 2P 3P 1P 2P 3P Cretaceous 1 3 4 1 2 2 Jurassic 212 568 877 123 329 508 Triassic 18 44 63 10 25 37 Shaikan – Total 231 615 944 134 356 547 Shaikan Contingent Resources Gro
Slide 28: Shaikan PSC
Shaikan PSC Summary of terms Shaikan Production Sharing Contract GROSS REVENUE 100% ROYALTY 10% NET REVENUE 90% COST RECOVERY PROFIT OIL 40% 60% Unused CR = Profit Oil CONTRACTOR (1) KRG (1) Split based on R-Factor (Cum. Rev/Cum. Costs) 30%-15% 70%-85% based on linear scale 1<R>2 Corporate Tax Paid
Slide 29: Gulf Keystone Petroleum
Gulf Keystone Petroleum More resources are available at: www.gulfkeystone.com
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