Gulf Keystone Petroleum Limited · LSE:GKP
Gulf Keystone Petroleum — Investor Presentation (June 2011)
25 slides from Gulf Keystone Petroleum's investor presentation, June 2011
Slide 1: Gulf Keystone Petroleum Investor Presentation
Gulf Keystone Petroleum AIM: GKP June 2011 Investor Presentation
Slide 2: Disclaimer
Disclaimer • The contents of these presentation materials and the accompanying verbal presentation (“Presentation Materials”) has not been approved by an authorised person within the meaning of the United Kingdom Financial Services and Markets Act 2000 (“FSMA”). Reliance on the Presentation Material
Slide 3: Management
Management Todd Kozel John Gerstenlauer Ewen Ainsworth Ali Al-Qabandi Executive Chairman & Business Development Chief Executive Officer Chief Operating Officer Finance Director Director • Co-founder • Appointed October 2008 • Appointed January 2008 • Co-founder • Active and successful entrepreneur •
Slide 4: Company Overview - History
Company Overview - History Offices currently in Bermuda, London, Algiers and Erbil, Iraq • Founded by UAE, Kuwaiti and US private equity 2001 2001 • Incorporated in Bermuda 2004 • Listed on AIM, a market of the London Stock Exchange under symbol GKP 2004 2007 • Award of 2 Production Sharing Contract
Slide 5: Highlights
Highlights • Gulf Keystone focused on oil and gas opportunities in Kurdistan • Two exploration wells drilled two discoveries – Shaikan and Akri Bijeel • Independent report by Dynamic Global Advisors of Shaikan oil in place of 4.9 to 7.5 to 10.8 billion bbls (P90 to P50 to P10) • Solid balance sheet
Slide 6: Work Programme – Kurdistan
Work Programme – Kurdistan 2011/ 2012 work programme Month Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar WDI 842, Shaikan Appraisal Wells Shaikan-2 Shaikan-6* New Rig, Shaikan Appraisal Wells Shaikan-4 Shaikan-7* AOS Discoverer-1, Sheikh Adi & Shaikan 2011 Sheikh Adi-1 Shaikan-5 Shaika
Slide 7: Gulf Keystone – Structure
Gulf Keystone – Structure Corporate structure Gulf Keystone (GKP) Listed on AIM (2004) 100% Gulf Keystone Petroleum Interests in Algerian assets International (GKPI) • Held for sale Interests in Kurdistan assets Licence Working Interest Operator Shaikan (1) GKPI 75%; MOL 20%; TKI 5% (2) GKPI Sheikh
Slide 8: Kurdistan Licences
Kurdistan Licences Asset summary for GKPI Block Working interest Summary acreage position Terms/Commitments (8) Status (6) Operator: GKPI 3 yr Phase 1 ends Nov 2010 171 km 2D seismic acquired in 2008 51% GKPI (Fully diluted) (1) (3) Est oil in place: Mean 7.5 billion barrels 100 km 2D seismic Shaika
Slide 9: Kurdistan
Kurdistan Region • Highly prospective oil province of Kurdistan in Northern Iraq • Several recent major discoveries (Heritage’s Miran West; GKP’s Shaikan-1) • Over 40 international oil companies in the region • Many undrilled surface structures • Export route proven • GKP has one of the largest acre
Slide 10: Shaikan
Shaikan ASSET SUMMARY STATUS • Working Interest GKPI 75% • Successful Shaikan-1 well completed on 23rd Nov 09 • Fully diluted working interest(1) GKPI 51% • Final depth at 2,950m due to high pressures • Operator GKPI • Various tests at cumulative rates of 20,000 boepd 18 to 55 degree API oil • Other
Slide 11: Reservoirs & fluid contacts schematic
Reservoirs & fluid contacts schematic GKP October 2010 interpretation 10
Slide 12: Jurassic reservoir pressure data
Jurassic reservoir pressure data Pressure (psi) 0.0 1000.0 2000.0 3000.0 4000.0 5000.0 6000.0 0.0 R2 = 0.9996 500.0 1000.0 Oil gradient of 0.359psi/ft based on DST#1, DST#2 & DST#3 oil pressure data 1500.0 OWC = 2230m @ 3930 psi Depth (m TVDSS) Shaikan DST (Oil) JK-1 DST (Water) 2000.0 Bijell-1 DST
Slide 13: Top Jurassic TWT P1 (~2230m TVDSS)
Top Jurassic TWT P1 (~2230m TVDSS) GKP interpretation of geological data 12
Slide 14: Shaikan Anticline & GKP Infrastructure (looking northeast)
Shaikan Anticline & GKP Infrastructure (looking northeast) Maraiba Pipeyard SH-5 SH-2 Approx 20km SH-3 SH-1 SH-4 Approx 10km EWT Facilities 13
Slide 15: Shaikan-1 & 3 Extended Well Test (EWT)
Shaikan-1 & 3 Extended Well Test (EWT) • Facilities complete & 20,000 barrel tank • Initially domestic oil sales contracts implemented with local buyer(s) • Focus now on 5,000 bopd export production target • Upgrade facilities to achieve 10,000+ bopd export production target EWT Pipeline Processing
Slide 16: Sheikh Adi
Sheikh Adi ASSET SUMMARY PROSPECTIVITY • Working Interest(1) GKPI 80% • Large mapped surface anticline of 34.8 km2 (main structure) (3) • Operator GKPI • Further 40 km2 closure identified in north of block as eastern • Other partner KRG 20% extension of Ber Bahr structure (3) • Potential volumes oil
Slide 17: Ber Bahr
Ber Bahr ASSET SUMMARY PROSPECTIVITY • Working Interest(1) GKPI 40% • Large mapped surface anticline covering >50% of block crossed by • Operator Genel 40% recent 2D seismic grid(3) • Other partner KRG 20% • On trend with Shaikan and Sheikh Adi structures • Potential volumes oil in place(2) 1.9 bill
Slide 18: Akri-Bijeel
Akri-Bijeel ASSET SUMMARY STATUS • Working Interest GKPI 20% • 442 km of 2D seismic acquired in 2008 on budget • Fully diluted working interest(1) GKPI 12.8% • Operator MOL 80% • Bijell-1 well spudded 11th December 2009 • Estimated operator oil in place 2.4 (P50) billion barrels • Oil discovery anno
Slide 19: Excalibur Litigation
Excalibur Litigation • 17 December 2010 Excalibur commences ICC Arbitration in New York and in the English Commercial Court against Gulf Keystone Group Companies (‘Companies’) • Excalibur asserts certain contractual and non-contractual claims and claims 30% in the Companies blocks in Kurdistan • On
Slide 20: Algeria
Algeria Assets Update • In the Republic of Algeria, the Company holds interest in: • In early 2010, the Company relinquished Blocks 108 and 128b under the Ben Guecha Permit. − Hassi Ba Hamou Permit (HBH) (GKP 38.25%, BG 36.75% and Operator; Sonatrach 25%) • In February 2010, an agreement was reached
Slide 21: Risk factors
Risk factors •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 therefrom (which may be equal to the whole amoun
Slide 22: Risk factors
Risk factors •Prospects in Algeria and Kurdistan •Both Société Par Actions Sonatrach, Algeria’s national oil development enterprise (“SONATRACH”) and international oil and gas companies have explored prospects throughout Algeria with varying degrees of success. Similarly, various international oil a
Slide 23: Risk factors
Risk factors •Tax treatment •Under current Bermuda law, the Company is not subject to tax on its income or capital gains, and its dividend payments are not subject to withholding tax in Bermuda. The Company has obtained from the Minister of Finance of Bermuda an undertaking that, under the Exempt Un
Slide 24: Risk factors
Risk factors •Oil and gas pricing and demand •The price of and demand for oil and gas is highly dependent on a number of factors, including both domestic and international supply and demand levels, energy policies, weather, competitiveness of alternative energy sources, global and domestic economic
Slide 25: Risk factors
Risk factors •Environmental regulation •The Group’s operations are subject to environmental regulations promulgated by the Algerian and Kurdistan Governments and could, in the future, also be subject to environmental regulations promulgated by the Iraqi government. Should the Company initiate operat
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