2014 Half Year Report

Management team presentation

28 August 2014

highlights

Shaikan commercial production and sales

pending projects

Financing

outlook

• Security situation in the Kurdistan Region is stable and Gulf Keystone’s operations remain secure

• Shaikan production and export crude oil sales continue

• Ramp-up of Shaikan production from 10k bopd to over 20k bopd

• 2.2 mln bbl of gross Shaikan production and exports at US$51-56/bbl

• 5.2 mln bbl of total gross Shaikan production to date

• On track to get to 40k bopd by year end subject to the improving security situation

• Revenue of US$18.7 million achieved with US$35 million owed/ not yet recognised

• US$177 million of cash and cash equivalents at 26 August 2014

• Active discussions with the MNR to establish a regular payment cycle for past and future sales

2

H1 2014 highlights

highlights

Shaikan commercial production and sales

pending projects

Financing

outlook

4

Shaikan commercial production since July 2013

• Steady production of between 20,000 bopd and 24,000 bopd

• PF-1 producing at 14,000-15,000 bopd from three wells

• PF-2 started up in May 2014 and is currently producing between 6,000 bopd and 10,000 bopd from two wells

• Total production from Shaikan has now surpassed 5.2 million barrels

0.00

500,000.00

1,000,000.00

1,500,000.00

2,000,000.00

2,500,000.00

3,000,000.00

3,500,000.00

4,000,000.00

4,500,000.00

5,000,000.00

0

5000

10000

15000

20000

25000

30000

Field Daily Production Cumulative Oil

Production up to 21/08/2014

Cu

mu

lati

ve P

rod

uct

ion

(b

arre

ls)

Pro

du

ctio

n (

bar

rel/

day

)

5

Shaikan PF-1 and PF-2

Shaikan 1 Well

Shaikan 3 Well

Shaikan 4 Well

Shaikan 7 and 8 Wells

PF-1

Shaikan 2 Well

Shaikan 5 Well

Shaikan 10 Well

Shaikan 10 and 11

Wells

PF-2

• Near-term target of 40,000 bopd

– Shaikan-10 flowlines have arrived to connect to PF-2

– Shaikan-7 and -8 flowlines are arriving to connect to PF-1

– De-bottlenecking work to be performed at both PF-1 and PF-2

– Continue to target 40,000 bopd of production by the end of 2014

subject to the improving security situation and international

contractors availability

• Looking forward to the Phase 1 target

– 66,000 bopd will be achieved 20-24 months after commitment to

PF-3

– 100,000 will be achieved 20-24 months after commitment to PF-4

– These commitments will be made after a stable payment cycle for

Shaikan export crude oil sales has been established

6

Path to 40,000 ibopd and ibeyond

highlights

Shaikan commercial production and sales

pending projects

Financing

outlook

8

Priorities versus pending projects

Ramp-up of production to 40,000bopd and maintain oil export sales by truck

Establish a steady flow of revenues before making decision on further investment

Investment in PF-3, PF-4 and its associated development drilling and infrastructure

Tie in Shaikan -7, -8 and -10 wells to existing production facilities; drill Shaikan-11

Priorities

Side-track and re-test of Shaikan-6

Drilling of a Shaikan exploration well into the deep Triassic and the Permian

Review of the Shaikan FDP to include Cretacious, Triassic and potentially Permian developments

Completion of the appraisal of the Sheikh Adi discovery and decision on early development

Pending projects

highlights

Shaikan commercial production and sales

pending projects

Financing

outlook

H1 2014 Results 10

Source: GKP

$ million H1 2014 H1 2013 FY 2013

Average gross production (bopd)

12,940 - 1,360

Revenue 18.7 - 6.7

Cost of sales (16.5) - (12.0)

Gross profit/(loss) 2.2 - (5.3)

Loss after tax (29.8) (26.4) (32.0)

Cash balance 223.5 141.2 82.0

Operating revenues and costs • Significant ramp-up in production to rates in excess of 20,000 bopd

in June 2014 • Price realisations at the Shaikan facility of:

• $42/bbl for domestic sales; and • $51-56/bbl estimated for export sales

• H1 2014: domestic sales on accruals basis; export sales on a cash

receipts basis • First 3 payments, totalling $20.2 million, received by the Shaikan

contractors for export sales (Gulf Keystone interest: 80% - $16.2 million)

• H1 2014 unrecognised revenue estimated to be in the region of $35

million

• Cash operating costs per barrel significantly decreased from prior periods as a result of consistent production throughout the period (reduced from $27 to $9 per entitlement bbl)

Net proceeds of $240 million raised from the issue of debt securities and associated warrants in April 2014 funding 40,000 bopd production target. Cash balance of $224 million as at 30 June 2014 and $177 million at 26 August 2014.

(US$m net to GKP)

2014

(SH-

40kbopd)

2015

(SH-40kbopd)

Discretionary

(SH-66kbopd) Comments

Shaikan

PF 1 (including SH-7) 53.0 - - Completion of SH-7 and PF-1 and tie in of associated

wells

PF 2 (including SH-11) 46.5 2.8 - Drilling of SH-11, completion of PF-2 and tie in of

associated wells

PF 3 (including SH-12 to -14) - - 193.1 Construction of PF-3, drilling of SH-12 to SH-14 and

associated facility tie in

Acid gas injection (including SH-9) - - 72.5 Acid gas injection pilot project – SH-9 initially

producer

Development planning & FEED 4.2 0.9 - Continuing subsurface analysis and engineering

design

Sheikh Adi 35.0 2.4 1.7 Completion of SA-3 and development plan;

discretionary spend relates to additional test on SA-3

Ber Bahr 11.9 17.2 * 3-D seismic program and drilling of BB-2

Akri Bijeel 64.7 159.2 * Drilling and completion of 15 wells; production facility

tie in and commissioning

Non-cash items 17.9 - -

Non-cash accounting adjustments including

decommissioning asset and capitalised interest –

excluded from forecast

Total capex 233.2 182.5 267.3

Capex schedule 11

* GKP non-operated; capex within operator control

highlights

Shaikan commercial production and sales

pending projects

Financing

outlook

• Increase Shaikan production capacity to 40,000 bopd through the tie-in of four additional producing wells

(Shaikan-7, -8 , -10 and -11)

• Conclude discussions with the MNR on the establishment of a regular and predictable payment cycle for

past and future Shaikan crude oil export sales to generate steady revenues

• Manage expenditure in a responsible and prudent manner, continuing to review and control capital

commitments

• Once a steady flow of revenues has been established, make decisions on investment in additional

production facilities and associated development drilling and infrastructure to increase production to 66k

bopd and 100k bopd in line with Shaikan FDP

• Continue to review options regarding 20% working interest in the Akri-Bijeel Block

• Complete appraisal of the Sheikh Adi discovery, submit the appraisal report and make a decision

regarding early production and development

13

Outlook

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14

Disclaimer

2014 Half Year Report

Management team presentation

28 August 2014