Kurdistan Investor Field Trip Kurdistan Region Overview March 2014 Oil Search Limited ARBN 055 079 868
Kurdistan Region Location TURKEY TURKENISTAN Caspian Sea KURDISTAN REGION OF IRAQ Erbil Office Sulimaniyah Office IRAN SYRIA Mediterranean Sea IRAQ JORDAN Persian EGYPT Red Gulf SAUDI ARABIA Sea U.A.E. 2
Kurdistan Region Overview A semi-autonomous Region within Iraq and operates under dual Iraq (Federal) law and Kurdistan Region (KR) laws Policy and major decisions determined by Regional Council for Oil & Gas Affairs Prime Minister,…
Iraq & Kurdistan History Ancient area with a traces of early settled existence 23rd Century BC. Has been part of Mesopotamia, Roman occupation, and Ottoman control Iraq established in 1920 under British rule after defeat of the Ottoman…
Government Iraq constitution: negotiated & approved by referendum in 2005, establishing Iraq as a single federal democratic State including the KR & sharing certain powers with the Regions Kurdistan Government: Parliamentary system…
KR Area is Close to Fully Contracted - Prospective acreage, - resource estimate of 40 billion barrels oil and 60 Tcf gas (USGS, 2010) - Most of the available blocks have been taken up 28 IOCs in the Region Block Operator A Taza Oil…
Ongoing Development of Energy Infrastructure to Serve the Progression of Discoveries 1 TURKEY Current Exports to Turkey 3 Dohuk 1 Reported 70,000 bbl/d via truck Tawke Oil Power Plant Field Fish Khabur 100% Diesel Oil pipelines…
Export Infrastructure & Export Routes Oil: TURKEY Fish Khabur - Turkey: - 40 500,000 bbl/d KRG 40 oil pipeline connecting Taq Taq field to - 46 1 mmbbl/d Fish Kabur on Iraq-Turkey border completed Fish Khabur Tawke Field late 2013.…
Oil Export Projections Iraq and KRG (est.) Historical Production and Exports (EIA) 3500 3000 2500 2000 1500 1000 500 0 2013 2012 2011 2010 2009 2008 Iraq Production Iraq Exports KRG Production KRG Exports 11…
Significant Events in Development of Kurdistan Region Oil Potential 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 1) Oct 2005 9) Aug 2012 Iraqi constitution adopted KRG resumes oil exports…
Reasonable Fiscal Terms Summary of Taza PSC terms Total Oil Produced 100 bbls Royalty Oil 10% of Total Crude Oil Net Available Oil 10 bbls 90 bbls Cost Recovery Profit Oil Sharing based on R-factor(1) Up to 40% of Net…
Reasonable Fiscal Terms First mover advantage in Kurdistan Contractor profit oil allocation % (post capacity building payment %) 40% New terms introduced in early 2011 capacity building payment % 35% 30% 0% 3% 3% 25% 0% 20% 20%…
Kurdistan Investor Field Trip Kurdistan Regional Geology / Exploration March 2014 Oil Search Limited ARBN 055 079 868
Kurdistan Geology Background Reproduced from Petroceltic Presentation 14
Location and Regional Setting Located on the NE collisional margin of the Arabian Plate Structuration is a result of the collision of Arabia/N Africa with Kurdistan Eurasia Comprises Low fold Zone in SW to High Fold and Thrust Zone…
Location and Regional Structural Map Iraq lies on the northern part of the Arabian Platform - a long-lived, gently subsiding, southern continental margin of the Tethys Ocean The plate motions from the Cretaceous to Tertiary closed…
Zagros Evolution Plate Tectonics Kurdistan Taza Area Homke, 2007 Taza area located on Arabian Plate positioned in Tethys ocean until Miocene collision Marine carbonate reservoirs, high TOC source, regional seals 17
Taza Area Regional Structure and Objectives Prospective section is younger and deeper moving from High Fold Zone (Cretaceous, Taza Jurassic and Triassic objectives) to Miocene Trend and Oligocene primary objectives in Taza area SW…
Southern Kurdistan Licensing Oil and Gas Fields Taza Source: WoodMackenzie 19
Kurdistan Region of Iraq Zagros Fold Belt Stratigraphy-Taza Area Taza-1 Oil bearing Oligo-Miocene R S reservoirs proven in R Low Fold Zone fractured carbonates plus dual porosity system R S Taza-2 planned TD in Shiranish…
Example reservoir distribution: Jeribe Formation Source: Oil Search 2013 Jeribe Fm is widespread and its open fracture system will contribute to sustained flow 21
Kurdistan Region Iraq Early Movers Pre 2005 The first two licences in Kurdistan were awarded in the early 2000s - Taq Taq to Addax and Tawke to DNO Most of the area was vacant with much earlier discoveries at Kor Mor, Chem…
Kurdistan Contracted Acreage - 2013 Since 2007, licencing activity has increased significantly. By the end of 2011 most of the territory administered by the KRG had been licenced. More than 50 blocks have been awarded. The blocks…
Kurdistan Drilling Success Exploration and Development in Kurdistan is steadily increasing. Approximately 55 exploration wells drilled since 2003 More than 40 drilling rigs are currently active in the country High overall success rate…
Zagros Basin Creaming Curves Shaikan Shaikan Kurkuk The initial discovery well, Naft Khaneh-1, was There is significant remaining potential. drilled in 1920. A number of key wells will be drilled during 2014. 126…
Kurdistan Investor Field Trip Taza Appraisal Programme March 2014 Oil Search Limited ARBN 055 079 868
Taza PSC PSC Effective Date 1 November 2009; Exploration Period of 5 years Very encouraging results at Taza 1 (2013): Positive test light oil, flow rates 1,100 bopd from Euphrates / Upper Kirkuk Continuous shows over a c. 250m…
Taza 2 Update Oil Search Limited ARBN 055 079 868
Taza 2 update Taza 2 is the commitment exploration well of the Second Sub-period Located 10km NNW of Taza-1 To be completed by 31 October 2014 Taza 2 objectives: Complete Taza PSC Second-Sub Period Commitment Penetrate Cretaceous…
Taza-2 Predicted Stratigraphy 200m of Shiranish planned Depth as of 12 March 2014 is 2611m at 13.5/8 casing point Following the setting of the 13.5/8 casing, plan is to drill ahead in 12.1/4 hole to just above the Jeribe…
Taza 3 and 4 Locations Approximate Top Reservoir Depth Structure Taza 3 southeast well for structural, reservoir Taza 4 Potential Location and fluid constraint near plunge Taza 4 Forelimb (western) well for structural, fluid,…
Location of Taza 3 34
Location Window for Taza 4 Taza 4 Target Box 35
Taza 3D Seismic Oil Search Limited ARBN 055 079 868
Taza 3D Seismic Survey Euphrates ML Depth Map Key contracts awarded and preparatory work has started Mobilisation of equipment and personnel to field initiated at end-February Camp construction ongoing ERW survey initiated…
Taza 3D - Status ERW clearance mobilising into field Start-up meeting held with AOFS on Jan 29 in Erbil AOFS mobilising camp AOFS currently organising Security, arranging local hiring committee and preparing HSES documents (Seismic…
Taza Early Development Potential Oil Search Limited ARBN 055 079 868
Taza Extended Well Test / Early Production Facility Investigating the potential to bring in a 5,000 bopd facility for a long term test period on one of the existing or new Taza wells. EWT / EPF has a number of strategically important…
Development Concept Select Study Oil Search is conducting a prequalification process to identify and engage a Concept Select partner to carry out option selection studies for Taza Development and to ensure the field is developed as…
Kurdistan Investor Field Trip Community Affairs March 2014 Oil Search Limited ARBN 055 079 868
Taza Block Demographics Approx. 1400 residents on site across 27 villages. 11 former (destroyed) villages uninhabited Many former residents & family descendants have migrated to nearby towns Subsistence lifestyle relying on seasonal…
CA/CSR Activity Dedicated Community Affairs team currently of 8 local staff and two expats Working closely with local authorities on labour hire & work opportunities Openly available to the community and enjoy a very good relationship…
Focus Areas People Capacity Building (Training & Competency) Organization requirements to identify roles and plan for Kurdish citizens Education & skills development (University College) Local content The Taza activities to date…
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