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Gulf Keystone Petroleum Ltd Corporate Overview

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Gulf Keystone Petroleum Ltd Corporate Overview Gulf Keystone Petroleum Ltd Corporate Overview Building perimeter fence at HEK-3 well site GKN-1 well – presently producing c. 850 bopd March 2007 1 Disclaimer This presentation does not constitute or form part of any offer for sale or solicitation of any offer to buy or subscribe for any securities in Gulf Keystone Petroleum Limited (“GKP”), nor shall it or any part of it form the basis of, or be relied on in connection with, or act as any inducement to enter into, any contract or commitment whatsoever. No reliance may be placed for any purpose whatsoever on the information or opinions contained in this presentation or on any other document or oral statement or on the completeness, accuracy or fairness of any such information and/or opinions. No undertaking, representation, warranty or other assurance, express or implied, is made or given by or on behalf of GKP or any of its respective directors, employees or advisers, as to the accuracy or completeness of the information or opinions contained in this presentation, and (save in the case of fraud) no responsibility or liability is accepted by any of them for any such information or opinions or for any errors, omissions, misstatements, negligence or otherwise contained or referred to in this presentation. The slides and the accompanying verbal presentation are confidential and the slides are being supplied to you solely for your information and may not be reproduced or distributed to any other person or published, in whole or in part, for any person. The slides contain forward-looking statements, including in relation to GKP’s proposed strategy, plans and objectives. These forward looking statements speak only at the date of this presentation. Such forward looking statements involve known and unknown risks, uncertainties and other important factors beyond the control of GKP that could cause the actual performance or achievements of GKP to be materially different from such forward-looking statements. Accordingly, you should not rely on any forward-looking statements and GKP accepts no obligation to disseminate any updates or revisions to such forward-looking statements. 2 Corporate Overview Founded by UAE, Kuwaiti and US private equity Incorporated in Bermuda in 2001 Listed on the AIM Market of the London Stock Exchange in 2004 Current Market Capitalisation: US$335 million Offices in London, Algiers and Hassi Massaoud Present shareholder structure: Founders and Management: ca. 33.0% UK Institutions and UK private investors: ca. 63.0% Others: ca. 4.0% Gulf Keystone is an independent oil and gas company operating in the Republic of Algeria 3 Company Overview - Capital Structure 33% Management and Top 15 Holders December 31 st 2006 % GKP Founders Gulf Keystone Petroleum Co (LLC) 40,000,000 14.52 Fidelity International (UK) 22,771,155 8.27 Directors Holdings 20,200,000 7.33 Gibca Ltd 20,000,000 7.26 Private Individuals 17,980,674 6.53 Oppenheimerfunds (US) 16,000,000 5.81 Number of common shares in Gartmore Investment Mgt 15,837,521 5.75 issue 275m with 500m authorised Artemis Investment Mgt 13,680,000 4.97 common shares Seymour PS Ellis Stockbrokers 11,809,543 4.29 Evolution Securities (MM) 10,893,578 3.95 AXA Framlington Group Ltd 10,012,750 3.63 Market Capitalisation of ca. BlackRock MLIM 9,520,200 3.46 US$335 Million (based on 63.0 Credit Suisse (MM) 8,905,956 3.23 Henderson Global Investors 7,000,000 2.54 pence as at close 12th January Morley Fund Mgt 6,024,197 2.19 2007) GKP has strong management and institutional shareholder base 4 Company Overview – Management Team Highly Experienced Commercial and Operational Management Team, Non Executive Directors Roger Parsons (2) Sheikh Sultan Al-Qassimi (1) (2) Chairman Todd Kozel (1) (2) Bill Guest (2) Chief Executive Officer President Executive Team David Iain Patrick (1) Ibrahim Jon Cooper (2) Mackertich Ali Al Qabandi Director Alkhaldi (1) Finance E.V.P. E.V.P. Commercial/ Chief Operating Director Exploration/ Business Legal Affairs Officer Technical Development (1) Original Founder (2) Board of GKP Ltd GKP’s Management enhanced to take on next Phase of Growth 5 Executive Summary NORTH AFRICA / MIDDLE EAST EXPLORATION PLAY Focus on proven hydrocarbon basins with material upside Algeria – Portfolio Development Block 126a awarded in 1st International Bid Round 2001 Awarded 6 additional blocks in 5th International Bid Round 2005 Awarded 2 further onshore blocks through direct negotiation 2005 Regional Competitive Advantage at the Point of Access Excellent regional contacts through senior management and original Arabian Gulf Investors Strong historic relationship with Algerian government authorities - SONATRACH Active Portfolio Management BG Group introduced as a strategic partner in Hassi Ba Hamou Gulf Keystone has material exposure to high impact reserves 6 Why Algeria? 60% of country’s total area occupied by sedimentary basins. Only 24% of the area has been licensed. Strategically positioned as major, and growing, supplier of energy to world’s largest energy markets and is major exporter of gas and LNG. Excellent Competitive Landscape: Only 35 foreign oil companies in sector alongside SONATRACH. Only 3 “smaller” (<$500mm Market Cap) independents. Significant barriers to entry for new smaller independents. Benign operating environment, good access to market World class oil and gas province, still relatively under-explored. 7 Sedimentary Basins of Algeria Mediterranean Sea SPAIN Kechabta Madjerda Basin Basin Basin Gulf Keystone Northern Blocks Cheliff Gulf Keystone tlas ian A Basin Tell n a Atlas i ellian s HBH Concession SudT i n n i u ns T aa SE Constantine i Hodna sB i n n i Plateau u s u T a Rif Basin ea B lat Melr Rharb Basin h P hir Tr Guercif Hig ough TUNISIATUNISIA tlas n A sia Chotts Basin - Atlas ni Tu MOROCCO d n / Touggourt Uplift a ra l Mi aha gh a ur S rou k sso T k Me oud Tilrhemt Telemazene u Tadla Ben o Hassi Arch D s Djorfa Saddle Nafusa High High Atla Messaoud a aouir Oued - Namous El Biod Ess Bechar Allal Oued Mya Dome Arch Boudenis Basin High Basin Er Rachidia Ouarzazate Berkine Hamra Timimoun Basin ALGERIAALGERIA Anti - Atlas Basin Basin Ougarta Chain I A d z LIBYA j GRJ figuresz to e be added Tindouf e S n r b e a Basin a n Dan Berhous a H e Mouydir i Atchan Gargaf Arch S g Saddle u h Basin b S Uplift - p n u sha Djoua r At Amguid dle Reggane Saddle ad Spur Illizi S Basin Basin Reguibate Massif Tihemboka Murzuk A Basin Arch l Ahnet Basin 'A w a y n a t Hoggar Massif T r o u g h MALI 0 250 500 BasinalNIGER Areas MAURITANIA Km Source : SONATRACH 8 Algeria – Current Concessions Northern Blocks HBH Significant areas within SH Operated Blocks Algeria remain Foreign Oil Company unlicensed Operated Blocks Source : IHS Energy 9 Asset Review – Algerian Portfolio Major acreage footprint in Oil prone Constantine Basin and gas prone Allal Dome - close to existing infrastructure 27,000sq km under licence in proven hydrocarbon bearing basins – oil and/or gas discoveries on each block GK majority working interest holder in every block HBH 38.25% Block 129 75% - Operator 108/128 75% - Operator GRJ/GKN/GKS 60% - Operator GKP has a strategic position in proven basins 10 Algeria – HBH Concession Large (18,380 km2) gas prone concession – under-explored Significant gas discovery (HBH) with ‘Contingent’ Recoverable Resources of 995 BCF and ‘high’ estimate of 1.7 TCF Significant exploration potential 20Km Mean (un-risked) ‘mid case’ 1.9 TCF Mean (un-risked) ‘high case’ 3.8 TCF High Resolution SPOT satellite image over sand dunes in Hassi Ba Hamou Block – Central Algeria HBH – Proven Gas field & significant exploration potential 11 HBH Asset Blocks 317b, 322b, 347b, 348 and 349 History Awarded April 2005, Presidential Decree August 2005 BG farms-in, August 2006 as operator HBH BG deal completed January 2007 Commitments : 1st Period (3yrs): Planned 2D & 3D Seismic (2006/2007) 2000 km 2D Seismic (started Jan 2007) 500 km ² 3D Seismic (Feb 2007) Drilling (Q4 2007 onwards) 6 exploration and appraisal wells HBH Blocks WI GKP 38.25% Increased programme to US$57 million BG 36.75% reflects the company’s view of the SH 25% 20Km significant additional hydrocarbon prospectivity of the HBH concession and surrounding area 1 TCF recoverable reserves over 3.5 TCF exploration upside 12 HBH - BG Group Farm In There was significant interest in Gulf Keystone’s HBH farm out process from companies looking to supply European gas market The introduction of BG Group as strategic partner allows GKP and SONATRACH to accelerate the exploration, appraisal and commercialisation of HBH gas BG recently signed an MOU with SONATRACH to co-operate across entire value chain BG’s rationale is a part of its larger LNG strategy to supply both US and European markets BG has acquired 49% of Gulf Keystone’s interest in the HBH concession In addition, Gulf Keystone and BG have established an AMI, which will look at the possibility of further co-operation opportunities for gas exploration, appraisal and development projects within Algeria Commercial terms of transaction required by Algerian authorities to be confidential The Presidential Decree approving the deal was published in the gazette dated 13th December 2006 and the deal completed on 12th January 2007 BG farm in demonstrates potential of the HBH portfolio 13 Asset Review – Algeria Gas in context Source: IEA, Merrill Lynch, BP Statistical Review Norway 60 Russia 76 bcm/yr 150 bcm/yr 50 40 Gas Reserves Available for European Pipeline 30 Market Tcm 20 10 0 Russia Algeria
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