Far Ltd · ASX:FAR
Far — RIU Good Oil Conference 2016
23 slides from Far's conference presentation, Sep 14, 2016
Slide 1: World class oil discovery offshore Senegal
World class oil discovery offshore Senegal For personal use only RIU Good Oil Conference 14 September 2016
Slide 2: About FAR
About FAR • Africa focussed oil exploration company For personal use only • Sixth largest E&P company listed on the ASX: Market cap $320M* • World’s largest oil discovery for 2014/15 in SNE Field offshore Senegal • SNE field 2C contingent recoverable oil resource 641 mmbbls (96 mmbbls net to FAR)* •
Slide 3: FAR in Senegal
FAR in Senegal • FAR celebrating 10 years in Senegal in 2016 For personal use only OFFSHORE SENEGAL PSC FAR 16.7% paying interest, 15% beneficial interest • Western most tip of Africa, capital Dakar, Operator: Cairn Energy PLC population 14 million • Peaceful democracy with a stable outlook (S&P sov
Slide 4: World hot spot for oil and gas discovery
World hot spot for oil and gas discovery • Status of offshore fields in mid 2014 For personal use only • No oil exploration drilling offshore Senegal for 40 years • No deepwater drilling ever offshore Senegal 4
Slide 5: World hot spot for oil and gas discovery
World hot spot for oil and gas discovery • Mid 2016 update For personal use only • Basin opening FAN-1 and SNE-1 oil discoveries 2014 • 4 successful SNE appraisal wells drilled 2015/16 • 100% drilling success to date • Cairn Energy (operator) NPV of US$12.75/bbl at project FID (2018/19) and US$70/bb
Slide 6: Senegal geological setting
Senegal geological setting For personal use only W FAN-1 SNE-2 SNE-1 SNE-3 BEL-1 E Buried Hills play Shelf Edge play Fan play 0 10 km 6
Slide 7: FAN-1 Discovery
FAN-1 Discovery For personal use only W FAN-1 SNE-2 SNE-1 SNE-3 BEL-1 E – Results announced Oct 2014 – Oil gravity 28-41 degrees API – Gross oil bearing interval >500m – Operator gross oil (STOIIP) in place – P90: 250 mmbbls – P50: 950 mmbbls – P10: 2,500 mmbbls – De-risked future shelf drilling 0 1
Slide 8: SNE-1 Discovery
SNE-1 Discovery For personal use only W FAN-1 SNE-2 SNE-1 SNE-3 BEL-1 E SNE Field – Result announced Nov 2014 – Oil gravity 32 degrees API – Gross oil column 96m – FAR contingent resources P90 (1C): 348 mmbbls P50 (2C): 641 mmbbls 0 P10 (3C): 1128 mmbbls 10 *Reference FAR ASX releases 23 August 2016
Slide 9: SNE appraisal program
SNE appraisal program For personal use only Objective of wells: • Size of oil pool • Test reservoir properties and deliverability from logging, coring and testing • Measure field connectivity Drilling Oil Traps Flow tested zones 9
Slide 10: Size of the SNE oil pool
Size of the SNE oil pool For personal use only 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
Slide 11: Deliverability of oil from SNE
Deliverability of oil from SNE For personal use only ● Main reservoirs flowed at ● commercially viable rates in the SNE-2 and SNE-3 wells ● 200mmbbls 350mmbbls 250mmbbls 400mmbbls 300mmbbls Flow test SNE-2 600mmbbls 11
Slide 12: Connectivity
Connectivity For personal use only Two well program planned to commence November 2016 Drilling program objectives: • Improving SNE project definition • Confirm volumes, connectivity and productivity: – Planned interference ● program between wells – Evaluate reservoirs not flow tested to date Field s
Slide 13: Appraisal program to date
Appraisal program to date For personal use only • Size of oil pool ✔ • Test reservoir properties and deliverability ✔ • Measure field connectivity • Each well has confirmed: • ~100m gross oil column • High quality 32⁰ API oil • Correlation of principal reservoir units • Program completed safely, eff
Slide 14: Scratching the surface of the prospectivity
Scratching the surface of the prospectivity For personal use only • Undrilled exploration prospects with >1bn bbls (unrisked) potential • FAR option over 75% of Djiffere block • New joint venture 2015 3D seismic shot along trend from SNE • Preliminary processed seismic products now at hand and final
Slide 15: Status of SNE development planning
Status of SNE development planning For personal use only Development planning underway Currently in pre-FEED stage (concept select) * Classification Low cost environment Categorisation Source: Society of Petroleum Engineers, Petroleum Resource Management System *Cairn Energy Half Yearly Result 16/08
Slide 16: SNE development and tie back concept
SNE development and tie back concept For personal use only • Standalone FPSO: expansion capability for tie-backs • Plateau production: rate expected to be 140,000 bopd • Development expenditure: US$12- US$15/bbl* (previous US$17-US$26/bbl) • Operating expenditure: <US$10/bbl* (previous US$5-US$15/bb
Slide 17: Operator economic development scenario
Operator economic development scenario SNE stand alone development (based on Cairn 2C 473 mmbbls) For personal use only US$12.50/bbl Prior Cairn Energy Source: Cairn Energy estimates (refer Cairn Energy Half Yearly Result 16/08/2016 and Cairn Energy Capital Markets Day presentation 11/05/2015) 17
Slide 18: SNE story so FAR
SNE story so FAR 21 months from discovery to statement of commerciality For personal use only OCT 2014 NOV 2014 DEC 2014 NOV 2015 JAN 2016 JAN 2016 Spud SNE-1 Discovery Contingent Spud SNE-2 SNE-2 DST Spud SNE-3 at SNE-1 resource World class announced upgrade flow rates 2C 330 mmbbls FEB 2016 MAR 20
Slide 19: Social responsibility
Social responsibility FAR and its partners are supporting For personal use only activities that deliver positive, lasting social and economic benefits to Senegal: • English language training for the energy sector • The Hunger Project support for a microfinance program • FAR has sponsored regional so
Slide 20: What's next in Senegal?
What’s next in Senegal? For personal use only • Two firm well program to commence November • New JV and Djiffere seismic data products • Decision to progress Djiffere option • Upgrade to prospective resource inventory • Project in Pre-FEED, building development plan for 2017
Slide 21: 2016 revealing the prize
2016 revealing the prize For personal use only 2013: Year of farmout 2014: Year of discovery 2015/2016: Evaluating the SNE Field 100% success rate to date offshore Senegal Statement on commerciality 21 months from discovery Undrilled exploration prospects with >1bn bbls potential Possible look-a-lik
Slide 22: Contact us
Contact us For personal use only 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 23: 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