Macquarie o & g explorers January 2014 John Gerstenlauer, COO
- Company overview - Licencing status - operational evolution & technical challenges - contractual & commercial environment - looking forward
World class assets 3 5 discoveries in the Kurdistan Region of Iraq Share of estimated 19 billion barrels of gross oil-in-place 20 wells drilled in 4 years across 4 blocks Shaikan is a major oilfield with 40,000 barrels per day…
2007-2014 Constant evolution 5 Shaikan Field Commercial Shaikan crude export Development Plan production from sales and revenue approved Shaikan commenced generation Regional export pipeline to Turkey Exceptional local…
Operating timeline 12 Key PSC Milestones Key Operating Milestones 2013 May: Ber Bahr-1 discovery (continued) Jun: Approval of the Shaikan Jun: Completed the Capex: 200m Development Plan by the MNR construction of Shaikan…
technical challenges 13 Drilling in Kurdistan is difficult and occasionally very difficult Highly indurated carbonates from surface (tophole ROPs are limited) Time sensitive clastics with substantial mechanical sloughing…
contractual & commercial environment
Kurdistan Rig market: major changes 15 On GKPs entry to the regional rig market in 2008 there were 4 players Weatherford, AOS, Great Wall, Romfor By early 2014 the regional rig market changed significantly 29 rig companies on…
Looking forward
Shaikan: a giant 17 Largest discovery in Kurdistan to date 30% of 45 billion barrels of discovered resources in Kurdistan 1,000 meter total Jurassic oil column 3 x London Shard c.300m Approximate area of Brent…
Shaikan fdp approval 18 PRODUCTION 40,000 bopd short-term production target 100,000 bopd Phase 1 production target to be achieved 18 months from date of consistent oil sales; will require additional production facilities DRILLING…
Shaikan fdp concept 19 Source: GKP
First production facility complete 20 PF-1 Complete and commissioned Commercial production commenced in Jul 2013 and export sales in Jan 2014 Production capacity to increase to 20,000 bopd in the near term Export quality crude…
Second production facility nearing completion 21 PF-2 Modular design similar to PF-1 Efficiency savings in design & installation Production capacity of additional 20,000 bopd Located 15 km from the export pipeline to which it…
Exploration continues 22 Successful side track of the Ber Bahr-1 5 additional appraisal exploration well flowed Field Development Plan wells, Bijell-2, -4, -5, -6 & at 2,100 bopd from the approved -7 Jurassic Shaikan-7, a deep…
Shaikan deep exploration upside 23 Major reservoirs are prognosed beneath the deepest current horizon Deeper resources are being targeted with Shaikan-7 The deep Triassic is a commercial reservoir Potential for significant…
Operators task is to deliver exploration success and production capacity, while contributing to the economic development of the Kurdistan Region of Iraq
Thank you
disclaimers 30 Oil and gas pricing and demand consequences of any terrorist attacks or any armed conflicts which may result are unpredictable, and the Company The price of and demand for oil and gas is highly dependent on a number of…
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