Gulf Keystone Petroleum

Transcription

1 Gulf Keystone Petroleum 15 March 2018 Pareto Conference London

2 Disclaimer 2 These Presentation Materials are for information purposes only and must not be used or relied upon for the purpose of making any investment decision or engaging in any investment activity and should not be construed as, an offer for sale or subscription of, or solicitation of any offer to buy or subscribe for, any securities of Gulf Keystone Petroleum Limited (the Company ). Whilst the information contained herein has been prepared in good faith, neither the Company, its subsidiaries (together, the Group ) nor any of the Group s directors, officers, employees, agents or advisers makes any representation or warranty in respect of the fairness, accuracy or completeness of the information or opinions contained in this presentation and no responsibility or liability will be accepted in connection with the same. The information contained herein is provided as at the date of this presentation and is subject to updating, completion, revision, verification and further amendment without notice. These Presentation Materials contain forward looking statements in relation to the Group. By its very nature, such forward looking information requires the Company to make assumptions that may not materialise or that may not be accurate. Such forward looking statements involve known and unknown risks, uncertainties and other important factors beyond the control of the Company that could cause the actual performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward looking statements. Nothing in this presentation should be construed as a profit forecast. Past share performance cannot be relied on as a guide to future performance.

3 Gulf Keystone Since we met a year ago 3 Predictable asset with robust production Safe and reliable operations Progress towards contractual and commercial clarity Regular payments leading to positive free cash flow Ready to increase production capacity to 55k bopd (no funding required)

4 Robust Shaikan production post restructuring 4 Share Price (Rebased to GKP (GBP/share)) March 2017 Pareto Conference - 0 Oct-16 Dec-16 Mar-17 May-17 Jul-17 Oct-17 Dec-17 Mar Trailing 3 month production average (kbopd) Shaikan Production (gross) GKP 33% Kurdistan E&P's 34% Brent 32% UK listed E&P's 6% Note: Market data as at 13 th March UK listed E&P s is a market cap weighted index of Cairn, EnQuest, Ophir, Premier Oil, Soco and Tullow Oil. Kurdistan E&Ps is a market cap weighted index of DNO, Genel, ShaMaran and Oryx (a) Performance in local currencies Source: Company information, FactSet

5 which continued in line with expectations 5 Share Price (Rebased to GKP (GBP/share)) March 2017 Pareto Conference - 0 Oct-16 Dec-16 Mar-17 May-17 Jul-17 Oct-17 Dec-17 Mar Trailing 3 month production average (kbopd) Shaikan Production (gross) GKP 33% Kurdistan E&P's 34% Brent 32% UK listed E&P's 6% Note: Market data as at 13 th March UK listed E&P s is a market cap weighted index of Cairn, EnQuest, Ophir, Premier Oil, Soco and Tullow Oil. Kurdistan E&Ps is a market cap weighted index of DNO, Genel, ShaMaran and Oryx (a) Performance in local currencies Source: Company information, FactSet

6 Gulf Keystone Since we met a year ago 6 Predictable asset with robust production Safe and reliable operations Progress towards contractual and commercial clarity Regular payments leading to positive free cash flow Ready to increase production capacity to 55k bopd (no funding required)

7 Gulf Keystone Since we met a year ago 7 Predictable asset with robust production Safe and reliable operations Progress towards contractual and commercial clarity Regular payments leading to positive free cash flow Ready to increase production capacity to 55k bopd (no funding required)

8 Working towards contractual and commercial clarity 8 Active engagement ongoing with MNR to address the past and future In parallel two major developments 1 Return to the Kurdish Export Pipeline November 2017 MNR resumed exporting the Shaikan crude via the export pipeline to Ceyhan as part of the Kurdish blend 2 Execution of Crude Oil Sales Agreement January 2018 Agreement signed with the KRG where Shaikan crude sold at Brent minus c.$22/bbl (for quality and transportation)

9 Gulf Keystone Since we met a year ago 9 Predictable asset with robust production Safe and reliable operations Progress towards contractual and commercial clarity Regular payments leading to positive free cash flow Ready to increase production capacity to 55k bopd (no funding required)

10 On par with other operators 10 February 2018 payment comprised of October & November oil sales c.$150m (net to GKP) received from KRG since March 2017 $35.0 Payment from MNR Net to GKP ($m) $30.0 $30.4 $25.0 $20.0 $15.0 $12.0 $12.0 $12.0 $12.0 $12.0 $12.0 $12.0 $12.0 $12.0 $12.0 $10.0 $5.0 $0.0 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18

11 Gulf Keystone Since we met a year ago 11 Predictable asset with robust production Safe and reliable operations Progress towards contractual and commercial clarity Regular payments leading to positive free cash flow Ready to increase production capacity to 55k bopd (no funding required)

12 Staged, risk managed approach 12 Focus remains on value Potential acceleration of 55k expansion under review Shaikan production capacity (bopd) 40,000 55, ,000 First Today phase Near term Mid to long term Investment plans summary ESPs on existing wells 1 new Jurassic well + ESP Maintenance and further debottlenecking 9 12 months plan, post FID Additional modifications to existing production facility Trunk line tie in months plan, post FID Full development of Jurassic First development of Cretaceous and Triassic reservoirs Processing facility, including gas reinjection, ~40 wells Investment plans subject to MOL and the Kurdistan Regional Government s ( KRG") Ministry of Natural Resources ("MNR") approval

13 0 Focus for Operations 2 Meet guidance (27 32k bopd gross) 3 Achieve commercial and contractual clarity 4 Finalise investment plans 5 Manage cost base

14 Thank you