Gulf Keystone Petroleum Limited · LSE:GKP
Gulf Keystone Petroleum — Investor Presentation (May 2010)
37 slides from Gulf Keystone Petroleum's investor presentation, May 2010
Slide 1: Gulf Keystone Petroleum Investor Presentation
Gulf Keystone Petroleum AIM: GKP May 2010 Investor Presentation
Slide 2: Disclaimer
Disclaimer • These presentation slides (the “Slides”) have been prepared by Gulf Keystone Petroleum Limited (the “Company”) in relation to a proposed placing of new common shares (the “Placing Shares”) by the Company (“Placing”) and their admission to trading on AIM ‘s market of the London Stock Exc
Slide 3: Disclaimer (continued)
Disclaimer (continued) • The rights of action described herein are in addition to and without derogation from any other right or remedy that the investor may have at law. • No copy of these Slides should be distributed, published, reproduced or otherwise made available in whole or in part by recipie
Slide 4: Corporate
GULF KEYSTONE PETROLEUM LTD. Corporate
Slide 5: Highlights
Highlights • Gulf Keystone focused on O&G opportunities in Kurdistan • Two wells drilled two discoveries – Shaikan and Akri Bijeel • Independent report by DGA on Shaikan-1 oil in place of 1.9 to 7.4 billion bbls (P90 to P10) • $165m capital raise to fund remaining 2010 and early 2011 work programme
Slide 6: Investment Case
Investment Case Highly experienced management team Prospective acreage Safe & supportive with multi-billion barrel operating environment potential Onshore, low cost Recent discovery of development and oil at Shaikan-1 exploration 2-7bn bbl¹ Strength of relationships with Government and licence partn
Slide 7: Use of Proceeds
Use of Proceeds • Proceeds of the placing will be used to fund: − Exploration, appraisal and early development programme in Kurdistan during the remainder of 2010 and early 2011 comprising; • 3 Shaikan appraisal wells $54mm • Shaikan-1 extended well test and production facilities $14mm • Sheikh Adi
Slide 8: 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 9: 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(1) Licence Working Interest Operator Shaikan GKPI 75%; MOL 20%; TKI 5% GKPI Sheikh Adi G
Slide 10: Assets
GULF KEYSTONE PETROLEUM LTD. Assets
Slide 11: 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 25 international oil companies in the region • Many undrilled surface structures • Export route proven • GKP has one of the largest acre
Slide 12: Kurdistan Licences
Kurdistan Licences Asset summary for GKPI Block Working interest Summary acreage position Terms/Commitments Status 51% GKPI (Fully diluted) (1) z Operator: GKPI z 3 yr Phase 1 (6) ends Nov 2010 9 171 km 2D seismic acquired in 2008 z Est oil in place: Mean 4.2 billion barrels(3) z 100 km 2D seismic 9
Slide 13: Shaikan
Shaikan ASSET SUMMARY • Working Interest GKPI 75% 0.2 S N • Fully diluted working interest(1) GKPI 51% 0.4 • Operator GKPI 0.6 0.8 • Other partners MOL 20%, TKI 5%(2) 1.0 • Estimated oil in place(3) 1.9 (P90) – 7.4 (P10) billion barrels 1.2 • Number of wells 1 1.4 • Area under licence 283 km2 1.6 PR
Slide 14: Setting of Shaikan anticline (looking east)
Setting of Shaikan anticline (looking east) Proposed Shaikan-2 Location Maraiba Pipeyard Ap pr ox .3 0k m Shaikan-1 m . 9k rox Ap p Proposed location of production facility 13
Slide 15: Top Jurassic TWT
Top Jurassic TWT Ber Bahr Sheikh Adi Shaikan 10 km GKP interpretation of geological data 14
Slide 16: Top Jurassic TWT P90 Map View 3D Relief View
Top Jurassic TWT P90 (~784m TVDSS) Map View 3D Relief View GKP interpretation of geological data 15
Slide 17: Top Jurassic TWT P50 Map View 3D Relief View
Top Jurassic TWT P50 (1169m TVDSS) Map View 3D Relief View GKP interpretation of geological data 16
Slide 18: Top Jurassic TWT P10 Map View 3D Relief View
Top Jurassic TWT P10 (~1500m TVDSS) Map View 3D Relief View GKP interpretation of geological data 17
Slide 19: Top Jurassic TWT P1 Map View 3D Relief View
Top Jurassic TWT P1 (~2230m TVDSS) Map View 3D Relief View GKP interpretation of geological data 18
Slide 20: Formations encountered in SH-1
Formations encountered in SH-1 GKP Net Pay Count Oil/Gas Cretaceous = Upper Jurassic = Lower Jurassic = Triassic = Mainly non-reservoir = GKP petrophysical interpretation 19
Slide 21: 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 2 R = 0.9996 500.0 OWC = 2230m @ Oil gradient of 3930 psi 1000.0 0.359psi/ft based on DST#1, #2 and #3 Shaikan DST (Oil) 1500.0 Depth (m TVDSS) JK-1 DST (Water) 2000.0 Water gradient of 0.44psi/ft based
Slide 22: Reservoirs & fluid contacts schematic
Reservoirs & fluid contacts schematic Drill Stem Tests (DST's) 1 1450 - 1510m MD 7480 bopd 2 1627 - 1667m MD 128 bopd 3 1783 - 1814m MD 5000 bopd 4 2404 - 2485m MD 1700 bopd 5 2582 - 2850m MD 10000 boepd GKP January 2010 interpretation 21
Slide 23: Shaikan-1 Extended Well Test (EWT)
Shaikan-1 Extended Well Test (EWT) • Planning and procurement for a 10,000 bopd EWT from the Upper Jurassic is ongoing • First oil expected July 2010 Shaikan-1 Magara Village Proposed Location of Production Facility 22
Slide 24: Sheikh Adi
Sheikh Adi ASSET SUMMARY • Working Interest(1) GKPI 80% 0.2 • Operator GKPI 0.4 0.6 • Other partner KRG 20% 0.8 • Potential volumes oil in place(2) >1 billion barrels 1.0 • Number of wells 0 1.2 • Area under licence 251 km2 1.4 1.6 PROSPECTIVITY 1.8 • Large mapped surface anticline of 34.8 km2 (main
Slide 25: Ber Bahr
Ber Bahr Ber Bahr Anticline ASSET SUMMARY • Working Interest(1) GKPI 40% • Operator Genel 40% • Other partner KRG 20% • Potential volumes oil in place(2) 1.9 billion barrels • Number of wells 0 • Area under licence 208 km2 PROSPECTIVITY • Large mapped surface anticline covering >50% of block crossed
Slide 26: Akri Bijeel
Akri Bijeel SW NE ASSET SUMMARY 0.6 • Working Interest GKPI 20% • Fully diluted working interest(1) GKPI 12.8% 1.0 • Operator MOL 80% 1.4 • Number of wells 1 1.8 • Area under licence 889 km2 2.2 PROSPECTIVITY UPPER QAMCHUQA • Multiple target horizons in Cretaceous, Jurassic and 2.6 Triassic levels B
Slide 27: Algeria
Algeria Assets Update • The Company holds exploration and appraisal rights over six blocks and • Strategic shift from Algeria to Kurdistan two producing fields in the Republic of Algeria • Orderly exit planned with assets held for sale and subject to approval − Hassi Ba Hamou Permit (HBH) (GKP 38.25
Slide 28: Capital Programme – Kurdistan
Capital Programme – Kurdistan Capital raising to fund remaining 2010/ early 2011 work programme Gross Net Month May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr ($mm) ($mm) Shaikan Appraisal Wells Shaikan-2 Shaikan-4 60 48 Shaikan EWT/Production facilities Production 18 14 Shaikan Shallow Appraisal W
Slide 29: Approach to funding
Approach to funding Financial position Financial strategy • Current cash of $24.5mm as at 26th April 2010 • Current capital requirements for remainder of 2010/ early 2011 are $140mm • $15.6m of cash is restricted under a guarantee for Algerian activities • Additional proceeds to potentially increase
Slide 30: Appendix
GULF KEYSTONE PETROLEUM LTD. Appendix
Slide 31: Company Overview - History
Company Overview - History Offices currently in Bermuda, London, Algiers and Erbil, Iraq 2001 • Founded by UAE, Kuwaiti and US private equity • Incorporated in Bermuda 2004 • Listed on AIM, a market of the London Stock Exchange under symbol GKP 2004 2007 • Award of 2 PSCs, Shaikan and Akri-Bijeel in
Slide 32: Company Overview - Shareholders
Company Overview - Shareholders Top Ten Shareholders* • Management 9.91% • Blakeney 5.61% • Capital 7.13% • Barclays Stockbrokers 6.67% • Gokana Trust 5.84% • TD Waterhouse 7.17% • Halifax 6.33% • Selftrade 4.25% • Hargreaves Lansdown 2.92% • Oppenhiemer 2.89% • Authorised share capital 750,000,000
Slide 33: 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 34: 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 35: 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 36: 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 37: 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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