Far Ltd · ASX:FAR
Far — Citi Conference Sydney 2017
26 slides from Far's conference presentation, October 2017
Slide 1: Investor presentation – Citi Conference Sydney
Investor presentation Citi Conference Sydney October 2017
Slide 2: Our Company
Our Company • Fifth largest E&P on the ASX: Market cap A$377M1 • Strategic focus Mauritania‐Senegal‐Guinea‐Bissau (MSGB) Basin, NW Africa • 8 exploration permits in MSGB Basin • Basin opening discoveries in Senegal in 2014 • Progressing towards first oil from SNE Field 2021‐23 • Strong balance sheet
Slide 3: FAR in Senegal
FAR in Senegal • FAR in Senegal since 2006 FAR LICENCES OFFSHORE SENEGAL, • Basin opening FAN‐1 and SNE‐1 oil discoveries, 2014 THE GAMBIA & GUINEA‐BISSAU • SNE ranked as worlds largest oil discovery in 2014 • JV invested ~ US$950M in three years • 11 deep water exploration/appraisal wells with a 10
Slide 4: FAN-1 and SNE-1 opened up Senegal
FAN‐1 and SNE‐1 opened up Senegal Industry hotspot ‐ increased investment and activity • FAR discoveries 2014 • 7 successful SNE appraisal wells drilled over 2015/16/17 • 100% drilling success to date • Major gas discoveries made in 2015, 2016, 2017 • BP farm‐in to Kosmos acreage introduces a large
Slide 5: SNE Field geological setting and discovery well
SNE Field geological setting and discovery well SNE‐1 oil discovery (Nov 2014) • Oil gravity 32 degrees API • Gross oil column 96m • FAR gross contingent resource* P90 (1C): 348 mmbbls, P50 (2C): 641 mmbbls, P10 (3C): 1,128 mmbbls • Excellent reservoir rocks in 2 main families: lower and upper reser
Slide 6: Top largest offshore oil discoveries
Top 10 largest offshore oil discoveries 6
Slide 7: SNE Field evaluation program
SNE Field evaluation program • Commenced appraisal drilling in Nov 2015 • Seven successful appraisal wells now drilled • Pre‐development appraisal completed • Objectives of the appraisal program: – Size of oil pool – 641mmbbls 2C recoverable oil*. Exceeded minimum economic field size (MEFS) of 200mm
Slide 8: Size of the SNE oil field
Size of the SNE oil field Pre‐Drill Post discovery RISC audited Latest RISC audited (Oct 2014) (Nov 2014) (April 2016) (August 2016) P90 : 50mmbbls 1C: 150 mmbbls 1C: 277 mmbbls 1C: 348 mmbbls P50 : 154 mmbbls 2C: 330 mmbbls 2C: 561 mmbbls 2C: 641 mmbbls P10 : 350 mmbbls 3C: 670 mmbbls 3C: 1071 mmbb
Slide 9: Deliverability and connectivity of reservoirs
Deliverability and connectivity of reservoirs • DST’s conducted on SNE‐2, SNE‐3, SNE‐5, SNE‐6 • Pressure gauges installed in SNE‐3 and SNE‐5 • Lower reservoirs flowed at world class rates (SNE‐2) • Deliverability and connectivity testing of upper reservoirs completed in May 2017 SNE‐5 SNE‐4 SNE‐6 SN
Slide 10: SNE Appraisal results and impact on exploration
SNE Appraisal results and impact on exploration • All appraisal wells proved 97m gross oil column • MEFS passed: 2C resource 641 mmbbls • Size, deliverability and connectivity now understood and pre‐ SNE Field at S460 reservoir level development appraisal drilling completed showing Sirius and Spica
Slide 11: Efficient drilling, lower costs
Efficient drilling, lower costs • Stena DrillMAX – a 6th generation, dual mast, dual BOP drill ship • 2017 drilling program significantly ahead of planned AFE • Drilling completed successfully and safely • Daily rig rates reduced by 70% since first drilling campaign in 2014 • Great time to be drilli
Slide 12: Looking forward to development of SNE
Looking forward to development of SNE • SNE is expected to be a staged development using a standalone FPSO, with expansion capability for satellite tie‐backs • Operator proposed firm budget for 2018 = US$84M (US$15M net to FAR) Operator Numbers • FID end 2018 • First oil anticipated in 2021‐2023, wi
Slide 13: 2017 Exploration Drilling
2017 Exploration Drilling VR‐1 drilled as appraisal well with a deeper exploration objective in Aptian carbonates. • Oil shows but reservoir poorly developed FAN South‐1 drilled as second exploration well in the basin. • Recovered 31 degree API oil from Early Cretaceous reservoir • Integrating resul
Slide 14: SNE North-1 well results and undrilled Spica prospect
SNE North‐1 well results and undrilled Spica prospect Single continuous oil and gas column Multiple oil and gas columns SNE SNE North Spica Prospect SNE North‐1 14
Slide 15: Growing FAR's portfolio: The Gambia
Growing FAR’s portfolio: The Gambia • Area identified by FAR as part of regional THE GAMBIA studies in 2013 & 2014 FAR 80% interest and Operator Erin Energy 20% partner • Extended negotiations continued through 2016 • Purchased Polarcus 3D in October 2016 Confirmed the Sama prospect • FAR Farmed in
Slide 16: Extension of the SNE shelf edge trend
Extension of the SNE shelf edge trend • On trend and adjacent to SNE field – same play type • Sama prospect defined on 3D seismic: >500 MB potential – Access to same, prolific source kitchen as SNE – Same upper/400 series reservoirs as SNE – Thickening of 400 series sands to the south • Highly prosp
Slide 17: CNOOC Strategic Alliance
CNOOC Strategic Alliance • Area of Mutual interest agreement with CNOOC UK • Covering the designated area offshore Senegal and The Gambia • CNOOC one of the largest independent oil and gas producers in the world • Complementary skills enhance FAR and CNOOC ability to secure additional acreage 17
Slide 18: Community & social programs
Community & social programs Investing in education & training, enterprise & Renovated a primary school community development programs in the regional city of Thiess through our Senegal joint venture Sponsored regional soccer competitions through provision of 200 balls and uniforms
Slide 19: Moving forward in 2017
Moving forward in 2017 • 2013: Year of farmout • 2014: Year of discovery • 2015‐2017: Appraisal of the SNE Field • 2017‐2018: Development planning and studies • 2018‐2021: Engineering, financing & construction • 2021‐23: First oil from Phase 1 SNE development • 100% success rate to date offshore Sen
Slide 20: Contact us
Contact us Level 17, 530 Collins Street Melbourne VIC 3000 Australia T: +61 3 9618 2550 info@far.com.au far.com.au Connect with FAR Limited:
Slide 21: Disclaimer
Disclaimer • This presentation has been prepared by FAR Limited (‘FAR’). It should not be • This presentation does not purport to be all inclusive or to contain all considered as an offer or invitation to subscribe for or purchase any shares in information which you may require in order to make an i
Slide 22: Additional slides
Additional slides “O FARLimited
Slide 23: Board and management
Board and management Experienced Board and management with strong relationships in Africa
Slide 24: Board with significant experience
Board with significant experience Nicholas Limb Geophysicist and investment banker Non‐Executive Chairman 15 years as MD/Chairman of an ASX listed, international mining company, Australia. Appointed 2012 10 years in Financial services with May and Mellor and HSBC. 38 years industry experience in the
Slide 25: Senior management
Senior management Catherine Norman Over 20 years experience in the mineral and oil & gas exploration industry, having held executive positions Managing Director both in Australia and in the UK. Cath has carried out operating assignments in Europe, Africa, the Middle East and Australia. Cath is a geo
Slide 26: FAR Shareholder summary
FAR Shareholder summary • Top 200 shareholders Top 200 shareholders by type own 70% of FAR Institutions 48% • FAR’s shareholders are predominantly Family Office 13% located in Australia Private 29% • 3 substantial shareholders: Other 10% – Meridian Asset Management Top 200 shareholders by location –