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April 2016 Investor Presentation – Genel Energy

Genel Energy · Apr 29, 2016 · 40 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. April 2016 Investor Presentation – Genel Energy – slide 1
    April 2016
  2. April 2016 Investor Presentation – Genel Energy – slide 2
    GENEL AT A GLANCE INVESTMENT CASE Low cost and resilient KRI asset base UK listed E&P focused on the Kurdistan Region of Oil: opex < 2/bbl Iraq (KRI) Gas: Miran & Bina Bawi upstream capex and opex < 3/boe Producing oil assets…
  3. April 2016 Investor Presentation – Genel Energy – slide 3
    Contractor export payments(2) 75m 75m 75m 75m 56m 36m 59m 650,000 600,000 KRI export pipeline shut in 550,000 between 17 February and 10 500,000 March 2016 450,000 400,000 bopd 350,000 300,000 250,000 200,000…
  4. April 2016 Investor Presentation – Genel Energy – slide 4
    Export payment mechanism announced by Ministry of Natural Resources on 1 February 2016 Monthly payment to Contractor calculated as a proportion of monthly field revenue as a proxy for entitlement MNR aims to process monthly payments…
  5. April 2016 Investor Presentation – Genel Energy – slide 5
    REGIONAL PIPELINE INFRASTRUCTURE Tank Farm = 10 mmbbls capacity Allocated to KRI = 5 mmbbls capacity 40 pipeline with 700,000 bopd capacity Tawke field, 250,000 bopd of pipeline capacity 700,000 bopd of pipeline capacity…
  6. April 2016 Investor Presentation – Genel Energy – slide 6
    GENEL ENERGY KRI LICENSES(1) Khurmala to Fishkhabour, 700,000 bopd capacity pipeline Taq Taq to Khurmala 150,000 bopd capacity pipeline (1) Genel is in the process of relinquishing its interests in the Ber Bahr and Dohuk…
  7. April 2016 Investor Presentation – Genel Energy – slide 7
    Taq Taq Tawke Gross average production of 116,000 bopd in 2015, +13% year- Gross average production of 135,000 bopd in 2015, +48% year- on-year on-year 2015 sales split: 63% sold via KRI-Ceyhan pipeline, 27% to 2015 sales split:…
  8. April 2016 Investor Presentation – Genel Energy – slide 8
    Gross Taq Taq production (kbopd) Gross Tawke production (kbopd) 135 116 104 91 75 75 66 52 45 39 33 12 2010 2011 2012 2013 2014 2015 2010 2011 2012 2013 2014 2015 Local Bazian Export Local Topping Plant…
  9. April 2016 Investor Presentation – Genel Energy – slide 9
    Taq Taq 2016 Development of Reservoir Qamchuqa Activity RIG Jan Feb March April May June July Aug Sep Oct Nov Dec activity plan Fracture Systems Management Workover Pilaspi test & production P O O Rigless Workover TT-07 P O O Rig-1…
  10. April 2016 Investor Presentation – Genel Energy – slide 10
    Miran and Bina Bawi a world-class resource 11.4 tcf of gross mean raw gas, 8.4 tcf of gross mean sales gas 34 mmbbls mean oil reserves & resources, 45 mmbbls mean first-stage condensate resources Onshore location and scale deliver…
  11. April 2016 Investor Presentation – Genel Energy – slide 11
    Raw gas (tcf) Liquids (mmbbls)(1) 19tcf 20 80 142mmbls 18 70 16 7 60 14 11tcf 79mmbls 50 12 50 10 40 60 4 48mmbls 8 6tcf 30 32 6 12 2 20 30 4 17 7 23 10 21 2 4 13 11 7 4 0 0 1 Low Low Oil Mean Mean Oil High…
  12. April 2016 Investor Presentation – Genel Energy – slide 12
    Upstream MidstreamCo Miran and Bina Bawi, 100% operated and owned by Genel Energy(1) Responsible for the gas treatment facilities at Miran and Bina Bawi Delivery of raw gas at 1,200 mmscfd to KRG on take-or-pay basis Genel leading on…
  13. April 2016 Investor Presentation – Genel Energy – slide 13
    Genel to own 100% interest in Miran and Bina Bawi PSCs 75% operated interest in Miran 80% operated interest in Bina Bawi KRGs 25% interest in Miran and 20% interest in Bina Bawi to be transferred to Genel Production Sharing…
  14. April 2016 Investor Presentation – Genel Energy – slide 14
    Gas Supply Agreement (GSuA): Terms under which raw gas (after removal of first stage condensate) is sold to the KRG Turkey GSA/crude oil sales backed guarantee provided by the KRG Genel commits to deliver raw gas on the following…
  15. April 2016 Investor Presentation – Genel Energy – slide 15
    Upstream and midstream term sheets signed Revised terms enhance original agreements and deliver alignment along the value chain Term sheets to be converted into binding documentation during Q2 2016 Acquired OMVs stake in Bina Bawi…
  16. April 2016 Investor Presentation – Genel Energy – slide 16
    Upstream Field Development Plan contract expected to be awarded in Q2 2016 Midstream Pre-FEED expected to complete by end H1 2016 - Pre-FEED will focus on site selection and technical design for the gas processing facilities at…
  17. April 2016 Investor Presentation – Genel Energy – slide 17
    Capex for the upstream gas development: 2.9 billion, 1 billion to be incurred before first gas Source: KRI 2014 The Oil Capex for the upstream oil development: 400 million, 60 million to be & Gas Year, company estimates. incurred…
  18. April 2016 Investor Presentation – Genel Energy – slide 18
    Further activity to be shaped by oil price outlook/evolution of export payments Chia Surkh-12 well spudded in March 2016 Peshkabir-2 well scheduled for Q3 2016 Morocco (Sidi Moussa licence, Genel 60% operated WI) - Farm-out…
  19. April 2016 Investor Presentation – Genel Energy – slide 19
    Chia Surkh-10 and Chia Surkh-11 (2013) Peshkabir-1 (2012) CS-10 and CS-11 encountered light oil and gas in Jeribe/Euphrates Drilled on flank of structure, based on sparse 2D data, 27-29 API oil Oligo-Miocene with flow rates between…
  20. April 2016 Investor Presentation – Genel Energy – slide 20
    2015 sales and production Export via Domestic Refinery Total Total Genel net (bopd) pipeline sales sales sales production production Taq Taq 73,000 12,300 31,000 116,300 116,100 51,100 Tawke 114,100 16,700 3,600 134,400 135,200…
  21. April 2016 Investor Presentation – Genel Energy – slide 21
    700 Operating cash flow of 71m 74 36 230m senior unsecured 18 bonds issued in Net debt of 600 23 March 2015 239m 74 46 (less issue discount) 93 500 489 196 455 141 400 Taq Taq and Tawke m Three payments received…
  22. April 2016 Investor Presentation – Genel Energy – slide 22
    2015 capex of 157 million 75% reduction on 2014 Majority of 2015 spend on development at Taq Taq and Tawke 2016 capex guidance of 80-120 million unchanged 50-90 million on Taq Taq & Tawke Contingent activity will move into…
  23. April 2016 Investor Presentation – Genel Energy – slide 23
    Guidance Production 60-70,000 bopd Accrued revenue Brent oil price guidance Production costs 1.25 - 1.75/bbl 35/bbl 160 220 million 45/bbl 200 275 million Revenue ranges reflect current production guidance and both firm and…
  24. April 2016 Investor Presentation – Genel Energy – slide 24
    2016 revenue guidance (m) 2016 uses of cash scenarios (m)(1) 300 200-275m Interest Opex Capex - TT & Tawke G&A Capex - Miran & BB Capex - other 250 160-220m 200 150 100 50 0 35/bbl Brent 45/bbl Brent Low…
  25. April 2016 Investor Presentation – Genel Energy – slide 25
    Bond buy-back successfully implemented in March 2016 55.4 million of nominal value repurchased at 63% plus accrued interest Provides liquidity and allows orderly exit for forced sellers Bonds currently quoted at 63(1) compared with…
  26. April 2016 Investor Presentation – Genel Energy – slide 26
  27. April 2016 Investor Presentation – Genel Energy – slide 27
    1,750 +5% 1,526 1,500 +25% 1,455 1,284 1,250 1,031 1,000 mmboe 750 -44% 500 429 242 250 0 2014 2015 2014 2015 2014 2015 2P 2C 2P + 2C Taq Taq Tawke Miran Bina Bawi Chia Surkh Peshkabir Others (1)…
  28. April 2016 Investor Presentation – Genel Energy – slide 28
    McDaniel, 30 June 2011 McDaniel, 31 December 2015 Original Recoverable Reserves 1P 2P 3P Original Recoverable Reserves 1P 2P 3P Pilaspi 11 17 22 Pilaspi 4 7 11 Shiranish 220 460 792 Shiranish 128 237 470 Kometan 50 93 124 Kometan 66 66 67…
  29. April 2016 Investor Presentation – Genel Energy – slide 29
    Principal change from McDaniel 2011 CPR is a revised estimate of fracture porosity in Cretaceous Shiranish reservoir Original Recoverable 2P Reserves McDaniel McDaniel Reservoir Change Comment 2011(1) 2016(2) Pilaspi 17 7 (10)…
  30. April 2016 Investor Presentation – Genel Energy – slide 30
    Lower well density on flanks of the structure Side-track campaign on flanks of structure Production concentrated on crest Side-track wells to target zones of high fracture porosity Water level rising faster at the crest compared to the…
  31. April 2016 Investor Presentation – Genel Energy – slide 31
    Irregular free water level rise Actions: Potential for unswept zones 1. Reduce rate of field offtake (implemented) 2. Manage offtake less on crest more on flanks 3. Drill horizontal wells on flanks Shiranish Shiranish…
  32. April 2016 Investor Presentation – Genel Energy – slide 32
    Reservoir Saturation Tool Results Reservoir Saturation Tool Remaining Oil Saturation results confirm unswept oil in the Qamchuqa matrix Currently assessed as prospective resources of 20-40 mmbbls Depleted Plan being developed…
  33. April 2016 Investor Presentation – Genel Energy – slide 33
    AFRICA EXPLORATION PORTFOLIO(1) NORTH ATLANTIC OCEAN Sidi Moussa MOROCCO Morocco Sidi Moussa licence 60% operated working interest 7,624 km2 ATLANTIC OCEAN Odewayne Block Block SL-10B/13…
  34. April 2016 Investor Presentation – Genel Energy – slide 34
    SUMMARY FINANCIALS - INCOME STATEMENT USm 2011 2012 2013 2014 2015 2016(1) Average production (boepd) 42 45 44 69 85 60-70 Growth 147% 7% -2% 57% 22% Average realisation (/bbl) 52 56 66 73 39 Revenues 24 333 348 520 344 200-275m(2)…
  35. April 2016 Investor Presentation – Genel Energy – slide 35
    SUMMARY FINANCIALS - CASH FLOW USm 2011 2012 2013 2014 2015 Operating cash flow (pre working capital) (41) 263 263 415 262 Working capital 13 31 42 (280) (191) Cash generated from operations (28) 294 305 135 71 Interest (paid)/received…
  36. April 2016 Investor Presentation – Genel Energy – slide 36
    SUMMARY FINANCIALS - BALANCE SHEET USm 2011 2012 2013 2014 2015 Non-current assets 2,076 3,106 3,637 3,695 2,967 Current assets 1,927 1,051 716 793 534 Total assets 4,003 4,156 4,353 4,487 3,502 Non-current liabilities (78) (80)…
  37. April 2016 Investor Presentation – Genel Energy – slide 37
    Genel Paying Interest 55% 25% 100% 40% 100% Genel Working Interest 44% 25% 100% 50% 100% KRG carried interest 20% 20% 0% 20% 0% 5% (crude oil and first stage 5% (crude oil and first stage State royalty 10% 10% 10% condensate only)…
  38. April 2016 Investor Presentation – Genel Energy – slide 38
    Contractors share of Profit Oil is determined by an R-factor formula Reset every 6 months = R-factor < 1 30% 1< R-factor < 2.5 Between 15-30% R-factor 2.5 15% Early in the field life cumulative costs are high, cumulative…
  39. April 2016 Investor Presentation – Genel Energy – slide 39
    40-55% of Net Production (Gross Production minus Royalty) is available for Contractors to recover costs Unrecovered costs may be carried forward and recovered in future periods Equipment and facilities become the property of the…
  40. April 2016 Investor Presentation – Genel Energy – slide 40
    Contractor Interest (80%) Production & Revenue Government Interest (20%) Production Gross Production 100 bbls 100bbls Contractor Working Interest 80 bbls Royalty Production 40-55% of Net Production is available for Contractors 10bbls…

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