Slide 1: Half-Year Results 2017
aa Genel Energy Cy
Slide 2: Disclaimer
These materials are being supplied to you by Genel Energy plc (the “Company”) solely for your information and for use at this presentation and does not constitute a prospectus or offering memorandum or an offer in respect of any securities. All numbers and charts included in this presentation are fr
Slide 3: Strategic priorities
Maximising the generation of free cash flow from our oil assets Accelerating the recovery of the receivable for unpaid oil sales Crystallising value from the KRI gas business
Slide 4: H1 2017 highlights
Maximising the generation of free cash flow from our oil assets Cash proceeds of $139 million received, with free cash flow (before interest payments) of $78 million Successful bond repurchase of $253 million nominal at a 14% discount to par, reducing annual interest cost by $19 million IFRS
Slide 5: Tawke and Taq Taq payment momentum
Tawke and Taq Taq payment momentum 20 consecutive months of payments, predictability of payments improved Over $1.1 billion in gross payments to Tawke and Taq Taq contractors since September 2015 Taq Taq 2017 entitlement share increased to 46.7% (2016: 25.4%) in accordance with PSC terms H
Slide 6: Miran and Bina Bawi gas update
Amended and Restated PSCs and Gas Lifting Agreements for Miran and Bina Bawi signed in February 2017 Negotiations with potential partners for the upstream development of Miran and Bina Bawi ongoing Expect to update market on progress by end 2017 Conditions precedent (‘CPs’) Progress being
Slide 7: Tawke and Taq Taq field production
TAWKE PSC TAQ TAQ FIELD kbopd kbopd 115 35 Tawke Peshkabir 110 30 105 25 100 20 95 15 90 10 85 5 80 - Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17* Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17* * To 27 July 2017 * To 27 July 2017 H1 2017 production from Tawke field 108,700 bopd H1 2017 p
Slide 8: Peshkabir-2 results and Peshkabir-3 well
Peshkabir-2 Cretaceous Top Cretaceous Depth Structure Initial discovery (announced Jan 2017) followed by successful May 2017 testing programme Focus of P-3 2 cased hole tests flowed 28º API oil at 1,100 bopd (Qamchuqa) and appraisal well 4,300 bopd (Shiranish) Shiranish interval subsequently
Slide 9: Somaliland and Morocco exploration
Depth to Basement from High Resolution Airborne Gravity & Magnetics Survey Odewayne Block Block SL-10B/13 Somaliland Depth 2 licences, 41,000km2 High • SL-10B/13 (Operator, 75% working interest) • Odewayne (Operator, 50% working interest) 2017 2D seismic acquisition Basin plan (original 2,000km excl
Slide 10: 2017 drilling and activity schedule
2017 Rig Q1 Q2 Q3 Q4 + 2,000HP T-35 Cretaceous T-42 Cretaceous Peshkabir-3 Tawke T-41 T-43 T-36 T-44 PSC 1,500HP Cretaceous Cretaceous Cretaceous Cretaceous Cretaceous Jeribe Sindy Workovers x 5, Jeribe producers x 2, Jeribe water disposal workovers x2 producers x 2 KRI 1,500HP TT-29 well operations
Slide 11: Strong financial performance in H1 2017
Strong financial performance in H1 2017 Cash proceeds of $139 million – 17% increase on H1 2016 Free cash flow of $78 million – 136% increase on H1 2016 Successful bond buy-back in April 2017 results in significant interest savings Net debt reduced by over a third compared to year-end 2016
Slide 12: Free cash flow of $78 million
Free cash flow of $78 million 600 37 13 6 2 41 550 14 88 1 24 500 217 450 427 400 350 $m 300 264 250 200 150 100 Restricted cash of $20 million Restricted cash of $19 million Unrestricted cash of $407 million Unrestricted cash of $246 million 50 IFRS net debt of $241 million IFRS net debt of $158 mi
Slide 13: Receivable and proceeds received
150 37 125 14 100 5 (4) $ million 75 139 50 92 87 25 0 Genel PSC entitlement KRG proxy vs Amount owed under H1 17 sales accruals 5% of field revenue CBP offset Total proceeds received entitlement difference KRG proxy for H1 17 vs. cash proceeds towards receivable in H1 17
Slide 14: H1 2017 capex and 2017 capex outlook
100 H1 2017 capex c.$30 million net on Taq Taq and Tawke development and appraisal (i.e. Peshkabir) programmes 80 2017 capex outlook Tawke PSC net capex increased from FY16 60 guidance following expansion of development drilling programme agreed in April 2017 Taq Taq activity reduced to al
Slide 15: April 2017 bond repurchase
April 2017 bond repurchase As at Covenant 30 June 2017 $253 million nominal repurchased at a 14% discount to par Bonds cancelled in June 2017 Net debt/EBITDAX < 3.0x 1.3x Annual interest charge reduced from $51 million per annum Equity ratio > 40% 68% to $32 million Net debt reduced by ove
Slide 16: 2017 guidance
Production costs • c.$30-35 million (unchanged) • $60-75 million Tawke PSC (inc Peshkabir) and Taq Taq (from $50-75 million) Capex • $10-15 million KRI gas business • c.$15 million Somaliland 2D seismic (from $10-15 million) • Income statement c.$20-25 million (from c.$30 million) G&A • Cash cost: c
Slide 17: Outlook and next steps
Payments for oil sales to continue being regular and predictable through 2017 Update on the progress of discussions with potential partners for the KRI gas project by the end of the year Conversations with the KRG ongoing regarding a definitive mechanism to recover the receivable for unpaid oi