Gulf Keystone Petroleum Limited · LSE:GKP
Gulf Keystone Petroleum — Fearnley Securities E&P Credit Webinar (September 2020)
10 slides from Gulf Keystone Petroleum's conference presentation, Sep 8, 2020
Slide 1: Fearnley Securities E&P Credit Webinar
. . Bue GULF KEYSTONE PETROLEUM 1 — Fearnley Securities Ay ee E&P Credit Webinar 8 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 Uri Free « Shaikan operations continue safely and reliably * 35,000 - 36,000 bopd 2020 gross production guidance yen Gross 2P "
Slide 4: 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 5: 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 6: 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$2.6/bbl ¥ Guidance: Opex and G&A savings of >20% compared to H1 2019; 30% run-rate *" Completed workforce reduction by c.40%, including >60% of expatriates "= H
Slide 7: Crude oil payments
Crude oil payments Consistent oil sales receipts over last five months * Since March, KRG honoured commitment to pay for oil sales in following month * GKP in constructive dialogue with KRG to seek timely settlement of historical arrears (US$S73 million net for Nov-19 to Feb-20 oil sales) $25 ~ $20m
Slide 8: 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 9: 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 10: Thank you
10 Thank you More resources are available at: www.gulfkeystone.com > Lc \ kJ
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