Gulf Keystone Petroleum Limited · LSE:GKP
Gulf Keystone Petroleum — H1 2011 Earnings Presentation
27 slides from Gulf Keystone Petroleum's earnings presentation, Sep 14, 2011
Slide 1: Half Year Report and Forward Strategy Presentation
Gulf Keystone Petroleum Ltd. AIM: GKP 14 September 2011 Half Year Report and Forward Strategy Presentation 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: Kurdistan Region of Iraq Licences
Kurdistan Region of Iraq Licences Block Operator 1 Shaikan Gulf Keystone 2 Sheikh Adi Gulf Keystone 3 Ber Bahr Genel/Vallares 4 Akri-Bijeel MOL 5 Sindi-Amedi Perenco 6 Tawke DNO 7 Dohuk Central Murphy Oil 8 Sarsang HKN Energy 9 Dohuk DNO 10 Al Qosh Komet 11 Atrush GEP 12 Dinarta Hess 13 Ain Sifni Hu
Slide 4: Company focused on the Kurdistan Region of Iraq
Company focused on the Kurdistan Region of Iraq 3
Slide 5: Kurdistan Region of Iraq – the new frontier
Kurdistan Region of Iraq – the new frontier Region Legal and commercial • Highly prospective oil province, underexplored • Draft Iraq Oil and Gas Law is currently the subject of with many undrilled surface structures parliamentary discussions in Baghdad; the Kurdistan Region of Iraq has had its own
Slide 6: Shaikan: Multi-billion barrel discovery
Shaikan: Multi-billion barrel discovery “ We have always believed that the initial gross- oil-in-place-range for the Shaikan discovery was a conservative estimate that would increase as more information became available. The gross oil-in-place volumes revision by DGA, entirely supported by the Compa
Slide 7: Major Middle East Fields Compared to Shaikan Resources
Major Middle East Fields Compared to Shaikan Resources "The new Shaikan-2 Triassic discovery is yet another chapter in our Shaikan success story. Oil Graph created for illustration and volumes that will eventually be comparison purposes only attributed to this zone, will be in Shaikan resources are
Slide 8: Company Highlights to date
Company Highlights to date • Independent report by Dynamic Global Advisors (DGA) of Shaikan gross oil-in-place of 4.9 to 7.5 to 10.8 billion bbls (P90 to P50 to P10) – a major 150% (P90) - 45% (P10) upgrade in April 2011 • A new Triassic discovery with Shaikan-2 appraisal well in August 2011 • DGA’s
Slide 9: Company Forward Strategy of Growth
Company Forward Strategy of Growth • Continue to explore and appraise aggressively the Shaikan, Sheikh Adi and Ber Bahr blocks to prove up the resource base • Focus is on finding and appraising giant fields with increased production to follow • Prepare the Shaikan Field Development Plan for submissi
Slide 10: Financial Review
Half Year Report and Forward Strategy Presentation FINANCIAL REVIEW 9
Slide 11: 3 Year and 6 Month Share Price Performance
3 Year and 6 Month Share Price Performance Sep 2008 Jun 2009 Mar 2010 Dec 2010 Sep 2011 Range: 9 September 2008 to 9 September 2011 Source: www.londonstockexchange.com © Teleborsa Mar 2011 Apr 2011 Jun 2010 Jul 2011 Sep 2011 Range: 14 March 2011 to 9 September 2011 Source: www.londonstockexchange.co
Slide 12: Premium Listing of the LSE Official List
Premium Listing of the LSE Official List • Actively pursuing a move to the Premium List of the Main Market of the LSE, subject to obtaining all necessary approvals • Terms agreed with Advisors • Appointment to the Board of three additional high calibre Non-Executive Directors As at 12 September 2011
Slide 13: Financial Summary 1H 2011
Financial Summary 1H 2011 1H 2011 1H 2010 2010 Revenue US$mm 1.6 - 0.8 Loss after tax US$mm 10.3 3.1 26.0 Loss per share cents 1.37 0.57 4.17 Capital expenditure US$mm 64.5 73.5 144.9 Cash, cash equivalents US$mm 137.6 161.7 211.4 and liquid investments 12
Slide 14: Financing Initiatives
Financing Initiatives • Shaikan Extended Well Test production of 5,000 bopd increasing to 10,000+ bopd • The Company has access to £10 mm from YA Global SPV Ltd in exchange for common shares of $0.01 each based on a formula related to the current market price • Sale of the Company’s 20% interest in
Slide 15: Operational Review
Half Year Report and Forward Strategy Presentation OPERATIONAL REVIEW 14
Slide 16: Gulf Keystone Exploration Dataset
Gulf Keystone Exploration Dataset 15
Slide 17: Shaikan Development Well Plan
Shaikan Development Well Plan Legend Road River 500m contour Licence boundary Shaikan Development Oil Pipelines Main export pipeline East Export spur line Production trunk line Shaikan Development West Development Wells Drilling pad Development well (connected to pad) Development well (not connected
Slide 18: Shaikan Field Development Process
Shaikan Field Development Process The development concept presented is one of a number of possible solutions. The following process will be followed to determine the final concept: Conceptual Engineering Front End Engineering Design (FEED) Detailed Engineering – As part of the Engineering, Procureme
Slide 19: Shaikan Early Well Testing Facilities
Shaikan Early Well Testing Facilities 10,000 BOPD Early Well Testing (EWT) facility located at SH-1 site Plant capacity currently limited to 7,000 BOPD due to gas handling constraints. Crude Sales currently to the domestic market and international export via the Kirkuk-Ceyhan pipeline Design complet
Slide 20: Pipeline Routes and Locations
Pipeline Routes and Locations 19
Slide 21: Pipeline Schedule
Pipeline Schedule GULF KEYSTONE PETROLEUM LTD. wep GULF KEYSTONE - SHAIKAN EXPORT PIPELINE OPTION LEVEL 1 INDICATIVE SCHEDULE energyenpower 1D Tem | Task Name Duration Stat Finish at az oa cry os oy 7 a8 8 wo. WET teaaT|t|g[20[ize|s|e 7 Milestones 499 days OT Jul" “SO May 19 2 Project Start Odays Of
Slide 22: 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 23: 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 24: 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 25: 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 26: 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 27: Gulf Keystone Petroleum Ltd.
Gulf Keystone Petroleum Ltd. AIM: GKP 14 September 2011 Half Year Report and Forward Strategy Presentation www.gulfkeystone.com 26
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