Gulf Keystone Petroleum Limited · LSE:GKP
Gulf Keystone Petroleum — FY2011 Earnings Presentation
21 slides from Gulf Keystone Petroleum's earnings presentation, May 28, 2012
Slide 1: 2011 Results and Forward Strategy – 28 May 2012
2011 Results and Forward Strategy – 28 May 2012 www.gulfkeystone.com
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: Board and management team
Board and management team Todd Kozel John Gerstenlauer Ewen Ainsworth Ali Al-Qabandi Tony Peart Chris Garrett Vice Executive President Chairman & Operations Chief Chief Business Legal and Executive Operating Finance Dev. Commercial MD of UK Officer Officer Director Director Director company • Co-fou
Slide 4: Key messages
Key messages 1. Multi-billion barrel discovered resources 2. High-probability exploration prospect inventory 3. New phase of Kurdistan – Turkey energy cooperation 4. Through appraisal to development of the Shaikan discovery 5. Key contributor to Kurdistan’s 2 million bopd target by 2019 3
Slide 5: A coveted position in one of the “Last Frontiers”
A coveted position in one of the “Last Frontiers” Ber Bahr • Kurdistan Region of Iraq is an underexplored Turkey Sheikh Adi Akri-Bijeel prolific oil province with >70% discovery rates Zakho Syria • GKP has interests in four adjacent and on-trend Iran blocks • 13 exploration and appraisal wells compl
Slide 6: New phase of Kurdistan – Turkey energy cooperation
New phase of Kurdistan – Turkey energy cooperation “Turkey means for us the access route to monetise oil and gas and create benefits for the Iraqi people.” Dr. Ashti Hawrami, KRG Minister for Natural Resources “With the KRG and the Iraqi government, we will develop projects and we will stand by them
Slide 7: The road to 1 million barrels per day of oil exports
The road to 1 million barrels per day of oil exports Projected flow rates by 2015: • Shaikan: 150,000 bopd reserved for export • Akri-Bijeel: 50,000 bopd reserved for export • Total: 1.025 million bopd reserved for export Pipeline outlook: • Major 1 million bopd oil export line to Turkish border and
Slide 8: 2011 Company highlights
2011 Company highlights • 420% (P90) / 181% (P10) increase in gross oil-in-place numbers for the Shaikan discovery with a range of 8.0 billion (P90) to 13.4 billion (P10) bbls • New Triassic reservoir discovery following the drilling of the Shaikan-2 appraisal well • Preliminary resource evaluation
Slide 9: Forward strategy
Forward strategy • Complete appraisal programme of the Shaikan field; explore deep undrilled horizons with Shaikan-7 • Increase Shaikan EWT production facilities output to 40,000 bopd to ramp up export and domestic sales and generate steady revenues • To handle increasing Shaikan EWT output, manage
Slide 10: Financial Summary 2011
Financial Summary 2011 2011 1H 2011 2010 Revenue US$mm 6.9 1.6 0.8 Loss after tax US$mm 62.4 10.3 26.0 Loss per share US$ 0.08 0.01 0.04 Capital expenditure US$mm 167.3 64.5 144.9 Cash, cash equivalents and liquid US$mm 237.6 137.6 211.4 investments 9
Slide 11: Funding options focused on self-reliance
Funding options focused on self-reliance • Cash, cash equivalents and liquid investments of $183mm as at end of April 2012 • With the award of the Third Party Interest in the Shaikan and Akri-Bijeel PSCs by the KRG, past costs of approximately $40mm to be reimbursed to the Company • Revenue to be ge
Slide 12: Review of operations: Shaikan is just the start
Review of operations: Shaikan is just the start • Incremental billion barrel potential across three other blocks • Targeted by the 2012/2013 exploration and appraisal program and beyond 11
Slide 13: 2012-2013 drilling programme
2012-2013 drilling programme • High impact drilling campaign planned and funded through 2012/13 based on current plans • Targeting 5 exploration wells and 7 appraisal wells • 6 rigs across 4 blocks (3 x GKP, 2 x MOL and 1 x Genel Energy) 20km Well spud Expected completion Field / 2011 2012 2013 Acti
Slide 14: Exploration and appraisal of massive structures
Exploration and appraisal of massive structures BER BAHR-1 SHEIKH ADI BER BAHR SHEIKH ADI-2 SH-5 BIJELL-3 SHEIKH ADI-1 SH-4 SH-1 SH-7 SH-2 SH-6 SH-3 SH-8 BEKHME-1 BIJELL-1 SHAIKAN SIMRIT 2 SIMRIT 1 AKRI BIJEEL Regional top Jurassic time structure map 13
Slide 15: Clear path to exceed 400,000 bopd production
Clear path to exceed 400,000 bopd production • Shaikan-1 & -3 are capable of Two such units will be used to upgrade the Shaikan-1 & -3 EWT and create a new test production producing 18,000 bopd facility at Shaikan-2 • Upgrade will increase current test production of up to 6,000 bopd to 20,000 bopd •
Slide 16: 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 17: 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 18: 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 19: 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 20: 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
Slide 21: 2011 Results and Forward Strategy – May 2012
2011 Results and Forward Strategy – 28 May 2012 www.gulfkeystone.com
Gulf Keystone Petroleum — FY2011 Earnings Presentation on 6ix