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FEBRUARY 2012 CAPITAL MARKETS DAY – Genel Energy

Genel Energy · Feb 23, 2012 · 49 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. FEBRUARY 2012 CAPITAL MARKETS DAY – Genel Energy – slide 1
    A New Force in E&P Capital Markets Day Presentation 23 February 2012
  2. FEBRUARY 2012 CAPITAL MARKETS DAY – Genel Energy – slide 2
    Overview Political Update Taq Taq and Tawke Appraisal and Development Miran and Dohuk Appraisal Exploration The 1.9 Billion Question Summary Q&A 3
  3. FEBRUARY 2012 CAPITAL MARKETS DAY – Genel Energy – slide 3
    VALLARES OBLIGATIONS AT IPO Acquire... An emerging market E&P business With a balanced portfolio of producing assets, appraisal and exploration That needed capital and capability to progress And provided a platform on which to…
  4. FEBRUARY 2012 CAPITAL MARKETS DAY – Genel Energy – slide 4
    WHAT MAKES GENEL ENERGY DIFFERENT Tier 1 Assets Taq Taq (44%) and Tawke (25%) have combined 2P gross reserves of 1.2bn bbls and 3P reserves of 1.9bn bbls Assets more typically owned by the Majors World class board and management…
  5. FEBRUARY 2012 CAPITAL MARKETS DAY – Genel Energy – slide 5
    STRATEGY Maintain the highest level of corporate governance Continue to fund Kurdistan Region development and exploration with operating cashflow Create value with the drill bit Build a major E&P company over the next 3-5…
  6. FEBRUARY 2012 CAPITAL MARKETS DAY – Genel Energy – slide 6
    THE FIRST 90 DAYS Expanded management team (IR, GC, Strategy, Financial Control, HR) Tawke reserves upgrade (2P up 78% from McDaniels 2011 report) Tawke facilities upgrade commitment (production capacity to reach 100kbopd in 2012)…
  7. FEBRUARY 2012 CAPITAL MARKETS DAY – Genel Energy – slide 7
    THE BOARD CHAIRMAN Rodney Chase INDEPENDENT NON-EXECUTIVE DIRECTORS Jim Leng (SID) George Rose Sir Graham Hearne Mark Parris Mehmet gt EXECUTIVES Tony Hayward (CEO) Julian Metherell (CFO) NON-INDEPENDENT NON-EXECUTIVE…
  8. FEBRUARY 2012 CAPITAL MARKETS DAY – Genel Energy – slide 8
    THE MANAGEMENT TEAM CEO Tony Hayward President Mehmet Sepil General Counsel / Strategy & Business CFO COO CCO HSSE Co Sec HR Development Julian Metherell Levent Akca Murat Ozgul Jazira Akhmetova tba Stephen Mitchell…
  9. FEBRUARY 2012 CAPITAL MARKETS DAY – Genel Energy – slide 9
    MANAGEMENT TEAM BIOS Tony Hayward Group CEO of BP from 2007 to 2010 Joined Genel in 2005 as Exploration Manager, Levent Aka Chief Executive Previous roles at BP include Group Treasurer Chief Operating COO since January 2011 Officer…
  10. FEBRUARY 2012 CAPITAL MARKETS DAY – Genel Energy – slide 10
    GENEL ENERGY ORGANISATION London Corporate office 15 people UNITED KINGDOM Kurdistan Region of Iraq Taq Taq Operation Ankara Regional Offices in Erbil, Operating headquarters Sulemaniya and Dohuk Financial 400 people…
  11. FEBRUARY 2012 CAPITAL MARKETS DAY – Genel Energy – slide 11
    Overview Political Update Taq Taq and Tawke Appraisal and Development Miran and Dohuk Appraisal Exploration The 1.9 Billion Question Summary Q&A 12
  12. FEBRUARY 2012 CAPITAL MARKETS DAY – Genel Energy – slide 12
    KURDISTAN REGION OF IRAQ Operating as an autonomous region since 1991 Formally recognised as a semi-autonomous region in Iraq constitution of 2006 Governed by democratically elected parliament and executive Secure and stable…
  13. FEBRUARY 2012 CAPITAL MARKETS DAY – Genel Energy – slide 13
    KURDISTAN REGION OF IRAQ Rotana, Divan, Erbil International Hotels Vibrant, dynamic and rapidly growing economy New international airport Family Mall Luxury hotels Modern shopping malls Erbil International Airport 14
  14. FEBRUARY 2012 CAPITAL MARKETS DAY – Genel Energy – slide 14
    KURDISTAN REGION OF IRAQ DEVELOPMENT OF THE OIL AND GAS SECTOR First licence awarded in 2002 (Taq Taq PSC to Genel Energy) Kurdistan Oil and Gas Law passed by Kurdistan Regional Government in 2007, consistent with Iraq Constitution of…
  15. FEBRUARY 2012 CAPITAL MARKETS DAY – Genel Energy – slide 15
    FUTURE OF IRAQ Federal Iraq Strongly Centralised Iraq Fragmented Iraq 16
  16. FEBRUARY 2012 CAPITAL MARKETS DAY – Genel Energy – slide 16
    Overview Political Update Taq Taq and Tawke Appraisal and Development Miran and Dohuk Appraisal Exploration The 1.9 Billion Question Summary Q&A 17
  17. FEBRUARY 2012 CAPITAL MARKETS DAY – Genel Energy – slide 17
    TAQ TAQ AND TAWKE RESERVES Turkey Big fields get bigger Syria 2009 to 2012 2P CAGR 20%, 3P CAGR 13% January 2012 Tawke 2P increase of 78% to 509mmbbls TAWKE IRAN Current Taq Taq and Tawke gross 2P reserves of 1.2bnbbls Genel WI:…
  18. FEBRUARY 2012 CAPITAL MARKETS DAY – Genel Energy – slide 18
    TAQ TAQ UPDATE Highlights Gross Production (bopd) Genel Energy Working interest: 44% 120-150,000 Operator: TTOPCO (55% Genel Energy) 2P: 647mmbbls gross, 285mmbls net 3P: 1,042mmbls gross, 458mmbls net Finding & development:…
  19. FEBRUARY 2012 CAPITAL MARKETS DAY – Genel Energy – slide 19
    TAQ TAQ APPRAISAL AND DEVELOPMENT DRILLING PROGRAMME Taq Taq phased development TT-19 flanks of the field are not fully Step out well to appraise appraised. further north, will be drilled in 2012, expected oil column c.350 metres.…
  20. FEBRUARY 2012 CAPITAL MARKETS DAY – Genel Energy – slide 20
    TAQ TAQ WELL COSTS (US) 20 18 18.5 16 14 14.8 TT-04 to TT-10 average: 12.3m 12 12.3 US Millions 11.3 10 10.6 10.2 10.3 TT-11 to TT-16 average: 6.9m 9.2 (down 46%) 8 7.7 6 6.7 6.2 5.8 4 3.7 2 0 TT-04 TT-05…
  21. FEBRUARY 2012 CAPITAL MARKETS DAY – Genel Energy – slide 21
    DOMESTIC SALES Genel Energy has the option of selling production into the domestic market in the Kurdistan Region of Iraq Taq Taq: currently c.50% production sold locally at c.60/bbl Tawke: currently c.50% production sold locally at…
  22. FEBRUARY 2012 CAPITAL MARKETS DAY – Genel Energy – slide 22
    WHAT DO DOMESTIC SALES MEAN Taq Taq has generated significant sales revenue for TTOPCO 2010 2011 its Contractors (Genel Energy and Addax) while Sales selling into the domestic market Domestic (bopd) 32,710 29,276 Exports (bopd) 0…
  23. FEBRUARY 2012 CAPITAL MARKETS DAY – Genel Energy – slide 23
    ENTITLEMENT PRODUCTION 100% DOMESTIC MARKET SALES Taq Taq 2012 Theoretical Entitlement Production Example Assumptions: 85,000 bopd production 460/t (c.60/bbl) Illustrative example only No cost recovery balance, 300m gross capex +…
  24. FEBRUARY 2012 CAPITAL MARKETS DAY – Genel Energy – slide 24
    EXPORT SALES Iraqi export budget includes 175kbopd from Kurdistan in 2012, up from 100kbopd in 2011 International sales are exported via the Kirkuk-Ceyhan Oil Pipeline to Ceyhan, Turkey Taq Taq exports are currently trucked to…
  25. FEBRUARY 2012 CAPITAL MARKETS DAY – Genel Energy – slide 25
    KICE PIPELINE MAP 26
  26. FEBRUARY 2012 CAPITAL MARKETS DAY – Genel Energy – slide 26
    KICE PIPELINE TIMETABLE FEED completed 3Q 2011 by OSD Pipelines1 PMC bids received, under evaluation will be awarded in March EPC tender released to pre-qualified bidders: Tekfen, CCC, Petrofac, ARGE-PJSC JV , Sinopec, Gama, Calik…
  27. FEBRUARY 2012 CAPITAL MARKETS DAY – Genel Energy – slide 27
    KICE PIPELINE FINANCING Estimated gross budget of c.400 million Financed through TTOPCO (Genel Energy 55%, Addax 45%) Agreement with KRG on financing and cost recovery TTOPCO will own the pipeline during construction Ownership will…
  28. FEBRUARY 2012 CAPITAL MARKETS DAY – Genel Energy – slide 28
    TAWKE UPDATE Highlights Jan-2012 reserve increase Genel Energy Working interest: 25% Operator: DNO International New DeGolyer & MacNaughton CPR report 2P: 509mmbbls gross, 127mmbls net 3P: 876mmbls gross, 219mmbls net 2P up 78%…
  29. FEBRUARY 2012 CAPITAL MARKETS DAY – Genel Energy – slide 29
    TAWKE NORTHERN FLANK The T-16 location is north of what was interpreted to be the northern reservoir boundary based on the early seismic Interference testing and improved seismic suggest the reservoir extends further to the north…
  30. FEBRUARY 2012 CAPITAL MARKETS DAY – Genel Energy – slide 30
    Overview Political Update Taq Taq and Tawke Appraisal and Development Miran and Dohuk Appraisal Exploration The 1.9 Billion Question Summary Q&A 31
  31. FEBRUARY 2012 CAPITAL MARKETS DAY – Genel Energy – slide 31
    MIRAN UPDATE Genel Energy 25% working interest (18.75% post KRG back-in) Operator: Heritage Oil plc Significant gas discoveries in Jurassic and lower Cretaceous Operator gross P50 estimate of 771mmboe contingent resource…
  32. FEBRUARY 2012 CAPITAL MARKETS DAY – Genel Energy – slide 32
    DOHUK UPDATE Genel Energy 40% working interest Operator: DNO International Cretaceous gas discovery Jurassic heavy oil discovery Next steps: 3D seismic acquisition across the entire structure in 2012 Subsurface studies Early…
  33. FEBRUARY 2012 CAPITAL MARKETS DAY – Genel Energy – slide 33
    Overview Political Update Taq Taq and Tawke Appraisal and Development Miran and Dohuk Appraisal Exploration The 1.9 Billion Question Summary Q&A 34
  34. FEBRUARY 2012 CAPITAL MARKETS DAY – Genel Energy – slide 34
    EXPLORATION PROGRAM TURKEY Ber Bahr 40% WI Taurus Mountains SYRIA Peshkabir 25% WI IRAN Tawke Deep 25% WI ERBIL Zagros Mountains Miran East & Legend Miran West Taq Taq Deep Genel Energy (Producing Asset) 44% WI 18.75%…
  35. FEBRUARY 2012 CAPITAL MARKETS DAY – Genel Energy – slide 35
    BER BAHR Genel Energy (operator) 40% working interest 508mmboe gross unrisked mean prospective resource (McDaniel 2011) BB-1 is the first exploration well on the Ber Bahr Block Currently drilling at a measured depth of 3,350 metres…
  36. FEBRUARY 2012 CAPITAL MARKETS DAY – Genel Energy – slide 36
    TAWKE PESHKABIR Genel Energy 25% working interest Operator: DNO International Major anticline directly along trend from Tawke 304mmboe gross unrisked mean prospective resources (McDaniel 2011) Peshkabir-1 targeting Cretaceous,…
  37. FEBRUARY 2012 CAPITAL MARKETS DAY – Genel Energy – slide 37
    TAWKE DEEP Genel Energy 25% working interest Operator: DNO International 213mmboe gross unrisked mean prospective resources (McDaniel 2011) Exploration well will test the Jurassic and Triassic intervals within the Tawke production…
  38. FEBRUARY 2012 CAPITAL MARKETS DAY – Genel Energy – slide 38
    TAQ TAQ DEEP Genel Energy 44% working interest Operator: TTOPCO (Genel 55%) 248mmboe gross unrisked mean prospective resources (McDaniel 2011) Taq Taq 3D seismic being re- processed for Jurassic and Triassic targets Taq Taq…
  39. FEBRUARY 2012 CAPITAL MARKETS DAY – Genel Energy – slide 39
    CHIA SURKH Haciar Lead Genel Energy to increase its interest from 20% to 80% and will become operator Chia Surkh Prospect Covers an area of 984 sq km in the southern part of the Kurdistan Region Barda Sur Lead 306mmboe gross…
  40. FEBRUARY 2012 CAPITAL MARKETS DAY – Genel Energy – slide 40
    RESOURCE HOPPER Exploration Assets Prospective Resources Miran 729 mmboe Peshkabir Taq Taq Deep Tawke Deep Contingent Resources 175 mmboe Development Assets Ber Bahr Miran Chia Surkh Dohuk Possible Reserves upside 266…
  41. FEBRUARY 2012 CAPITAL MARKETS DAY – Genel Energy – slide 41
    OPERATIONAL MILESTONES FOR 2012 First Quarter Second Quarter Third Quarter Fourth Quarter Tawke reserve upgrade & KICE pipeline First Chia Surkh Taq Taq deep spuds commitment to facility upgrade to 100kbopd construction begins…
  42. FEBRUARY 2012 CAPITAL MARKETS DAY – Genel Energy – slide 42
    FINANCIAL FRAMEWORK CAPEX 250 Net Genel Energy Capex (USm) 200-250m 200 150 Development 100 86 67 60 46 50 Exploration & Appraisal 0 2008 2009 2010 2011 2012E Notes: 1. Development include all development…
  43. FEBRUARY 2012 CAPITAL MARKETS DAY – Genel Energy – slide 43
    FINANCIAL FRAMEWORK PRODUCTION & SALES REVENUE Working Interest Production (kbopd) Net Sales Revenue (m)1 55-60 kbopd 250-300m 42 150 142 17 12 29 2009 2010 2011 2012E 2009 2010 2011 2012E Taq Taq Tawke 1.…
  44. FEBRUARY 2012 CAPITAL MARKETS DAY – Genel Energy – slide 44
    Overview Political Update Taq Taq and Tawke Appraisal and Development Miran and Dohuk Appraisal Exploration The 1.9 Billion Question Summary Q&A 45
  45. FEBRUARY 2012 CAPITAL MARKETS DAY – Genel Energy – slide 45
    THE 1.9 BILLION QUESTION Geographic diversification Within the Middle East and Africa Exploration hopper Extend the life of our exploration portfolio Asset quality Do not dilute the quality of our existing portfolio Capability…
  46. FEBRUARY 2012 CAPITAL MARKETS DAY – Genel Energy – slide 46
    Overview Political Update Taq Taq and Tawke Appraisal and Development Miran and Dohuk Appraisal Exploration The 1.9 Billion Question Summary Q&A 47
  47. FEBRUARY 2012 CAPITAL MARKETS DAY – Genel Energy – slide 47
    CONCLUSION Successful start Expanded management team in place Operations performing well Clear strategy Short and medium term value drivers for Genel Energy Continued reserve growth at Taq Taq and Tawke Successful ramp-up of…
  48. FEBRUARY 2012 CAPITAL MARKETS DAY – Genel Energy – slide 48
    Overview Political Update Taq Taq and Tawke Appraisal and Development Miran and Dohuk Appraisal Exploration The 1.9 Billion Question Summary Q&A 49
  49. FEBRUARY 2012 CAPITAL MARKETS DAY – Genel Energy – slide 49
    APPENDIX DRILLING PROGRAMME 2012 Well Q1 Q2 Q3 Q4 Ber Bahr-1 Peshkabir-1 Miran East-1 Kewa Chirmila Exploration Chia Surkh-10 Tawke-Deep Taq Taq Deep Appraisal Miran (M West-3) Taq Taq (TT-17, 18, 19, 20, 21)…

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