Gulf Keystone Petroleum Limited · LSE:GKP
Gulf Keystone Petroleum — Investor Presentation (September 2018)
25 slides from Gulf Keystone Petroleum's investor presentation, September 2018
Slide 1: Gulf Keystone Petroleum Corporate Presentation September 2018
Gulf Keystone Petroleum Corporate Presentation September 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: Agenda
1 Corporate Overview 2 Shaikan Field 3 Financial Review 4 Appendix
Slide 4: 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 Shaikan key information • Gulf Keystone interest: 80% (58%2)) • Kurdistan focused independent E&P company • Partner: MOL 20% – Listed on the main boa
Slide 5: 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 6: 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 7: 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 8: Shaikan Field
1 Corporate Overview 2 Shaikan Field 3 Financial Review 4 Appendix
Slide 9: Shaikan – A large field with proven production track record
Shaikan – A large field with proven production track record Overview Field map4) • Located ca.60km north-west of Erbil, the Shaikan Field is an anticline sitting at the north-west end of the Zagros Fold-belt • One of the largest fields in Kurdistan by reserves and production – Gross 2P reserves: 615
Slide 10: Shaikan subsurface
Shaikan subsurface Discovered and producing reservoirs: Jurassic Structural map and section of Jurassic reservoirs • All production currently from fractured Jurassic carbonates reservoirs – Over 50 MMstb produced to date • Areal extent of the Jurassic reservoirs of ca.135 sq. km • Substantial oil co
Slide 11: 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 12: Expansion to 55,000 bopd underway
Expansion to 55,000 bopd underway Realising the potential of Shaikan with a phased, risk-managed approach • PF-1 pipeline tie-in initiated • Phased approach de- risks and progressively 110,000 unlocks value bopd 75,000 55,000 bopd bopd • On track to increase Shaikan production to Capex $200–230m1) g
Slide 13: Shaikan 55,000 bopd expansion project
Shaikan 55,000 bopd expansion project PF-2 SH-2 SH-5 SH-10 SH-11 SH‐11 SH‐10 SH‐5 SH‐4 SH‐1 SH‐7 SH‐2 SH‐3 SH‐6 SH‐8 PF‐2 tie‐in line PF‐1 tie‐in operational PF-1 line route Atrush pipeline SH-1&3 SH-4 SH-7 SH-8 5 km New Jurassic well location Temporary unloading facility at PF-2 under construction
Slide 14: 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 • In January 2018, the Crude Oil Sales Agreement was signed with the KRG – a key milestone for GKP – Under the agreement, which is in line with the agreements of
Slide 15: Financial Review
1 Corporate Overview 2 Shaikan Field 3 Financial Review 4 Appendix
Slide 16: Continuous payments from September 2015
Continuous payments from September 2015 • $107m net to GKP received in H1 2018 ($165m net YTD) $35 $30.4 $30 $25 $21.2 US$m (net) $20 $18.9 $17.0 $17.8 $17.7 $14.7 $15.5 $15 $12.0 $10 $5 $0 Payment Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Received in Month of Sept-17 Oct / Nov-
Slide 17: Half Year 2018 financial highlights
Half Year 2018 financial highlights • Record figures for GKP in H1 2018 • Revenue, EBITDA and profit driven by production, robust oil price • Signing of the Crude Oil Sales Agreement in January 2018 Revenue EBITDA Profit/(Loss) After Tax US$m US$m US$m $140 $70 $50 $27m $62m $116m $0.7m $120 $60 $54
Slide 18: Disciplined cost control
Disciplined cost control • Opex remained stable – in line with 2017 • Opex per barrel slightly increased due to lower production • G&A continued to decrease: $2.0m reduction vs. H1 2017 ($9.7m) Operating Expenses1) General & Administrative Expenses US$m 37 48 35 28 14 US$m 39 31 26 21 8 kbopd kbopd
Slide 19: Free cash flow positive
Free cash flow positive • Healthy cash balance ($240m at 7 September 2018) • Refinanced $100m bond in July 2018 with standard terms – 10% coupon, 5-year maturity H1 2018 Cash Flow ($m) $250 0 (2) $200 61 $150 219 $100 160 $50 $0 Opening Cash Operating Investing FX Closing Cash (31-Dec-2017) Activiti
Slide 20: Gulf Keystone today
Gulf Keystone today 1 • Gross 2P + 2C resource base of 854 MMstb1) with year-to-date gross production of 31,743 bopd – on track to meet 2018 guidance (27,000 to 32,000 bopd) Operator of Shaikan – a large • Predictable reservoir performance: steady production (underpinned by safe and reliable operati
Slide 21: Outlook
Outlook • Operational Excellence – Safe operations – Meeting 2018 gross production guidance of 27,000-32,000 bopd – Delivering on project milestones – Continued disciplined cost control • Production Growth – Deliver the expansion project: Jurassic drilling campaign, workovers, facilities debottlenec
Slide 22: Appendix
1 Corporate Overview 2 Shaikan Field 3 Financials 4 Appendix
Slide 23: 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 24: 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 25: Gulf Keystone Petroleum
Gulf Keystone Petroleum More resources are available at: www.gulfkeystone.com
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