Slide 1: FAR delivers in Senegal
FAR delivers in Senegal For personal use only Investor presentation April 2015
Slide 2: Investment highlights
Investment highlights For personal use only • First mover advantage with quality committed partners Cairn Energy, ConocoPhillips and Petrosen in a new high potential emerging basin offshore Senegal • FAN-1 and SNE-1 are new world class oil discoveries that significantly reduce the risk of drilling a
Slide 3: Market summary
Market summary • ASX 300 Index. FAR trades on the Australian stock exchange (ASX) and is included in the S&P / For personal use only ASX 300 index, with potential to enter the S&P / ASX 200 Energy Index • Relatively high turnover. Average daily turnover is 19M shares over the past six months and 18M
Slide 4: FAR in Africa
FAR in Africa • Africa focussed E&P company For personal use only Senegal Kenya New FAN-1 and SNE-1 oil Frontier acreage with large with its key assets located in discoveries highlight multi equity positions in a fast billion barrel potential emerging oil and gas margin West and East Africa with qua
Slide 5: Senegal
Senegal For personal use only • Senegal is Africa’s western most country with RUFISQUE, SANGOMAR & SANGOMAR DEEP OFFSHORE 16.7% paying interest, 15% beneficial interest a population ~14M (Capital Dakar) Operator: Cairn Energy PLC • Large offshore PSC area of 7,490 km2 that includes Sangomar, Sangoma
Slide 6: Senegal prospects and leads
Senegal prospects and leads For personal use only 6
Slide 7: FAN-1 and SNE-1 seismic section / schematic
FAN-1 and SNE-1 seismic section / schematic For personal use only FAN-1 Well SNE-1 Well W E 1430m WD 1150m WD Buried Hills Play Shelf Edge Play Slope Fan Play Source Kitchen Oil Migration Oil Traps 7
Slide 8: FAN-1 oil discovery
FAN-1 oil discovery For personal use only FAN-1 • Located approximately 100km offshore in the Sangomar Deep block • Drilled in 1,427m water depth to a TD of 4,927m • Discovered high quality light oil in a stratigraphic trap containing a multiple stacked deepwater Cretaceous sand sequence • Oil gravi
Slide 9: FAN seismic and in place resource
FAN seismic and in place resource FAN-1 For personal use only West East Main objectives Operator STOIIP (in place) resource for FAN-1 P90 250 mmbbls P50 950 mmbbls P10 2,500 mmbbls • FAN is a combined structural and stratigraphic trap in a stacked sequence within an elongate closure with a very larg
Slide 10: FAN 3D amplitude section
FAN 3D amplitude section For personal use only • Thick, oil-bearing interval, interpreted to be a stacked series of oil columns • Oil-water contact not encountered • Possibly drilled on edge of reservoir section • Reprocessed 3D seismic data completed late 2015 10
Slide 11: FAN analogy
FAN analogy • Jubilee was one of the largest worldwide finds of 2007, and the largest find of the entire decade For personal use only offshore West Africa. The Jubilee discovery was significant, not only because of its size, but also because it opened a new hydrocarbon play within the deep water Wes
Slide 12: SNE-1 oil discovery
SNE-1 oil discovery For personal use only SNE-1 • Located SE of FAN-1 approximately 100km offshore in the Sangomar Offshore block • Drilled in 1,000m water depth to a TD of 3,107m • Classified as one of the world’s largest oil discoveries in 2014 (IHS CERA) • Discovered very good sandstone reservoir
Slide 13: SNE seismic and schematic
SNE seismic and schematic For personal use only NW SE 13
Slide 14: SNE top reservoir
SNE top reservoir • Pre-drill estimate 154 mmbbls (gross, best For personal use only estimate prospective resource)* • Conformance of amplitude with structure • Post drill 330 mmbbls (gross, best estimate contingent resource)* • Audited by ERC-Equipoise Pre-drill estimated field size 154 mmbbls SNE-
Slide 15: SNE development concept
SNE development concept As at 31 December 2014 For personal use only • The most likely SNE development concept is expected to be a floating, production, storage and offtake (FPSO ) vessel based on an integrated multi-field development with tie back of satellite fields to the surface processing and i
Slide 16: Senegal shelf prospects
Senegal shelf prospects • Extensive prospect inventory mapped on For personal use only 3D seismic • Two distinct play types on shelf • The minimum economic field size for a 77mmbbl* standalone FPSO hub is ~200 mmbbls (Operator estimate) 74mmbbl* • Tie-back to hub development: ~75 204mmbbl* mmbbls ov
Slide 17: Senegal shelf prospects
Senegal shelf prospects N S For personal use only Bellatrix SNE oil field Soleil Sirius 17
Slide 18: Senegal prospect inventory
Senegal prospect inventory* For personal use only *Reference ASX release dated 13 Apr 2015 best estimate, gross, unrisked prospective resources, 100% basis, oil only 18
Slide 19: Senegal timetable
Senegal timetable For personal use only 2014 2015 2016 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Drilling of FAN-1/SNE-1 FAN-1/SNE-1 data analysis Well planning Firm 3 wells Contingent wells 3D seismic acquisition/processing Declaration FAR AGM of discovery 19
Slide 20: Industry costs are coming down
Industry costs are coming down As at 31 December 2014 • Offshore upstream capital costs are For personal use only expected to decline 12% on average between 2014 and 2016 • Offshore rig day rates dropped significantly • Cairn stated well costs for appraisal drilling in Senegal at $30-$40M • Labour p
Slide 21: Guinea-Bissau
Guinea-Bissau For personal use only • Three blocks, operator Svenska • FAR 15% WI, 21.43% PI • New 3D seismic evaluating SNE look-a-like prospect (Atum) • Sinapa has a gross 2C contingent resource of 13.4 mmbbls (FAR net 2 mmbbls)* *Reference ASX releases dated 27 Feb 2013, 5 Feb 2014, 11 Mar 2014,
Slide 22: Kenya
Kenya For personal use only • The Lamu Basin has proven oil at both ends of BLOCK L6 BLOCK L9 Miocene reef play 60% interest offshore 30% interest 24% interest onshore Operator: Ophir Energy PLC • Sunbird-1 well in Block 10A was an oil and gas Operator: FAR Limited discovery • Oil and gas column • R
Slide 23: Australia
Australia For personal use only • WA-458-P exploration permit offshore WA-458-P OFFSHORE DAMPIER BASIN Western Australia is surrounded by discoveries 100% paying and beneficial interest Operator: FAR Ltd • Structural and combined structural- stratigraphic leads at proven reservoir levels • Combined
Slide 24: Appendices
For personal use only Appendices
Slide 25: Performance relative to the oil price
Performance relative to the oil price • Strong performance in late 2014. The significant FAN-1 and SNE-1 oil discoveries re-rated FAR at For personal use only the end of 2014, but their importance has been partly offset by a material oil price correction 500 150 400 130 FAR Market Cap A$297m based o
Slide 26: Liquidity relative to Australian industry peers
Liquidity relative to Australian industry peers • Strong trading volumes. FAR’s liquidity has substantially improved from mid 2014, supported by For personal use only the late 2014 oil discoveries, news flow and enhanced broker coverage 1.1% 1.0% 0.9% 0.8% 0.7% Liquidity(1) 0.6% 0.5% 0.4% 0.3% 0.2%
Slide 27: Board with significant experience
Board with significant experience For personal use only 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 indu
Slide 28: Community projects
Community projects For personal use only • Flood relief program in Senegal • Mosquito nets in Senegal • Donation of soccer balls in Guinea- Bissau • Community consultation and education in all our areas of activity where appropriate
Slide 29: Contact us
Contact us For personal use only Level 17, 530 Collins Street Melbourne VIC 3000 Australia T: +61 3 9618 2550 www.far.com.au
Slide 30: Disclaimer
Disclaimer For personal use only • 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