Gulf Keystone Petroleum Limited · LSE:GKP
Gulf Keystone Petroleum — Pareto Conference 2015
25 slides from Gulf Keystone Petroleum's conference presentation, Mar 12, 2015
Slide 1: Investor Presentation
Investor Presentation Sami Zouari, CFO 12 March 2015
Slide 2: Overview
overview Shaikan commercial production and sales pending projects outlook
Slide 3: A leading Kurdistan independent E&P company
A leading Kurdistan independent E&P company • Public company, moved to Standard Segment of Official List in March 2014 • One of the largest acreage holders in Kurdistan, 1,632 km2 across four contiguous blocks • Total investment in Kurdistan of over USD 800 million • All 2P reserves and majority of
Slide 4: Management team
Management team Simon Murray– Non-Executive Chairman Joined the Company as Independent Non-Executive Chairman and Senior Independent Director in July 2013 • Over 40 years of international business experience and a strong network of contacts globally and across the Far East, built up over four decade
Slide 5: Proven drilling track record
Proven drilling track record 4 Shaikan-1 Bijell-1 Shaikan-3 Shaikan-2 Shaikan-4 Shaikan-5 Sheikh Adi-2 Bakrman-1 Ber Bahr-1 Discovery Discovery Appraisal Appraisal Appraisal Appraisal Discovery Discovery Discovery Aug-09 Mar-10 Jan-11 Mar-11 Dec-11 Dec-11 Nov-12 Feb-13 May-13 Spud Spud Spud Spud Spu
Slide 6: Reserves and resources summary
Reserves and resources summary • 12,506 mmbbls of gross hydrocarbons in place Reserves and resources Net, diluted WI to GKP • Gross 2P + 2C of 1,219 mmbbls GKP diluted STOIIP/GIIP Oil (mmbbls) Gas (bcf) mmboe(1) WI Shaikan 54.4%(2) 5,013 537 5,103 • 3P + 3C unrisked valuation Sheikh Adi 80.0% 1,805
Slide 7: Company strategy
Company strategy Ramp-up commercial oil production from Shaikan Reinvestment of cash flows Become a cash generating Increase reserves and production business and maintain financial through further exploration and flexibility appraisal across the portfolio Monetisation proceeds Exit non-core assets/o
Slide 8: Shaikan commercial production and sales
overview Shaikan commercial production and sales pending projects outlook
Slide 9: Shaikan commercial production since July 2013
Shaikan commercial production since July 2013 PF-1 PF-2 Shaikan 1 Shaikan 3 Shaikan 4 Shaikan Shaikan 2 Shaikan 5 Shaikan 10 Shaikan Well Well Well 7 and 8 Well Well Well 11 Well Wells 25000 20000 barrel/day barrel/day 15000 10000 5000 0 24/04/14 08/05/14 22/05/14 05/06/14 19/06/14 03/07/14 17/07/14
Slide 10: 40,000 bopd and beyond
40,000 ibopd and ibeyond • 40,000 bopd reached in December 2014 – Total commercial production from Shaikan is nearly 9 mln barrels – Two production facilities PF-1 and PF-2 and 8 production wells – Shaikan-11, an additional producer is currently being completed – Focus on ensuring a stable daily pro
Slide 11: Current Export Route
Current Export Route Shaikan 10
Slide 12: Potential export routes
Potential export routes Possible injection point Possible twinned Heavy Oil Line 11
Slide 13: Getting Shaikan into the pipeline
getting Shaikan into the pipeline 12
Slide 14: Pending projects
overview Shaikan commercial production and sales pending projects outlook
Slide 15: Priorities versus pending projects
Priorities versus pending projects Priorities Maintain stable production and sales of 40,000 bopd and beyond through debottlenecking Finalize a pipeline access solution for Shaikan Establish a steady flow of revenues before making decision on further investment Pending projects Drilling of a Shaikan
Slide 16: Shaikan: Phase 1 (CPR 2P) Wells
Shaikan: Phase 1 (CPR 2P) Wells 15 • Shaikan Phase 1 is focused on the first 26 development wells targeting 299MMstb of 2P reserves Flowline Source: GKP
Slide 17: Shaikan: Full field development: beyond phase 1
Shaikan: Full field development: IbeyOnd phase 1 16 • Shaikan Full Field Development envisages approximately 109 wells targeting 1,001MMstb of 2P + 2C reserves and contingent resources • Further reserves are fully expected in time Full field development Flowline Well locations are well approximate S
Slide 18: Outlook
overview Shaikan commercial production and sales pending projects outlook
Slide 19: Provisional Capex schedule
Provisional Capex schedule 18 2015 2016 (US$m net to GKP) 2015 firm Comments Contingent contingent Shaikan Shaikan-11 13.2 - Drilling of an additional well to tie into PF-2 PF 1 Change orders and 9.7 - - Maximising capacity & sustaining plant operation debottlenecking PF 2 Change orders and 8.0 - -
Slide 20: Funding development
Funding development 19 1H FY FY 1H 2014 Source 2014 2014(E) 2014(E) Notes net gross gross net Value depends on pricing assumptions used. Assumed $23/bbl Shaikan crude discount to Brent and $22/bbl transportation costs throughout 2014 Unrecognised revenues $44m $128m $35m $102m Further clarity requir
Slide 21: Outlook
Outlook • Maintain and improved Shaikan production capacity at and beyond 40,000 bopd • Establish a regular payment cycle for past and future Shaikan crude oil export sales to generate steady revenues • Manage expenditure in a responsible manner, continuing to review and control capital commitments
Slide 22: Strong stakeholder relationships
Strong stakeholder relationships Stakeholder relationships • Over 300 employees and contractors in the Kurdistan Region of Iraq • 93% of employees are Kurdish nationals, receiving regular training in the region and abroad • Approximately 30% of expenditure represents business done with local vendors
Slide 23: Thank you
Thank you 22
Slide 24: Disclaimer
Disclaimer By attending the meeting where this presentation is made, or by reading the presentation slides, you agree to be bound by the following limitations: The information in this document has been prepared by Gulf Keystone Petroleum Limited (the "Company") solely for use at a presentation to be
Slide 25: Investor Presentation
Investor Presentation Sami Zouari, CFO 12 March 2015