Slide 1: Off Shore West Africa – World Class Oil Potential
For personal use only Off Shore West Africa Off‐Shore World Class Oil Potential OCTOBER 2010
Slide 2: Disclaimer
DISCLAIMER For personal use only This presentation has been prepared by FAR Limited (“FAR” or the “Company”). It should not be considered as an offer or invitation to subscribe for or purchase any securities in the Company or as an inducement to make an offer or invitation with respect to those se
Slide 3: Overview of FAR
Overview of FAR For personal use only Focus on Central Atlantic Margin of West Africa Capital Structure Shares on issue 658,232,784 FAR (10% WI) is i partnering t i Ophir O hi Energy E plc l in i landmark l d k Share price $0.065 West African “Kora” well (potential 448 million bbl Market capital
Slide 4: West Africa – World Class Oil Potential
West Africa – World Class Oil Potential For personal use only FAR 7 Licences – 23,170 , sq q km (gross) (g ) Farm‐in with Ophir gives FAR largest foothold offshore Senegal and Guinea Bissau region Page 4
Slide 5: West Africa Emerging Resources Projects
West Africa Emerging Resources Projects For personal use only Iron Ore Projects only Mittal Xstrata/Sphere $2 Billion Guelb El Aouj Commitment Mittal Rio $1.5 Billion $3 Billion Commitment Simandou deal Buchanan value l BHP $3 Billion $ African Minerals Commitment Tonkolili Tolo Range etal $6B deal
Slide 6: What's Missing on the Map and Why?
What’s Missing on the Map and Why? For personal use only High potential basins – mega projects likely ? No Deepwater Wells ever drilled here but that’s about to change g in a very big way Prospective Deepwater basins (purple) Page 6
Slide 7: FAR Offshore West Africa Summary
FAR Offshore West Africa Summary For personal use only AGC Profond Block (FAR earning 10% WI1) Ophir O hi as operator to drill d ill the h “Kora” “K ” wellll in i early l 2011 Well is targeting a prospect with mean prospective oil resources of 448million bbl (100% basis) 16 prospects on bloc
Slide 8: For personal use only
For personal use only
Slide 9: Who has the acreage tied up?
Who has the acreage tied up? For personal use only Tullow FAR FAR 7 Licences 23,170 sq km (gross) FAR has the largest acreage holding of any ASX entity in West Africa and first mover advantage Page 9
Slide 10: West African Exploration
West African Exploration For personal use only Mauritania - Tullow Cormorant 700mmboe Q3 2010 Planned deep water wells Sidewinder 300mmboe Q4 2010 AGC/Senegal – Ophir/FAR No deepwater Kora 448mmboe Q1 2011 wells <2010 *Venus Venus Sierra Leone - Tullow Mercury 450mmboe 2010 Jupiter 250mmboe 2011 Lib
Slide 11: West African Exploration Adjacent to FAR
West African Exploration Adjacent to FAR For personal use only First deep water well Q1 2011 AGC/Senegalg FAR Licences 90% Senegal 15% Guinea Bissau Maersk Discoverer due Ophir/FAR O hi /FAR to t drill d ill 448 on location Q1 2011 mmbbl Kora prospect Est. well cost ~ $US32m in 2,600m water Chance o
Slide 12: Following the smart money
Following the smart money For personal use only Sheik Sh ik Mohammed M h d Al Al‐ Amoudi (43rd richest Mittal family (5th richest person in world) owns person in world) owns in 100% of Svenska, Svenska FAR’s excess of 20% of Ophir partner in Guinea Bissau With the possible exception of Anadarko rece
Slide 13: Snapshot of Kora Well
Snapshot of Kora Well For personal use only Seismic traverse approximately through the Play l elements l southern h MSGBC Basin proposed Kora ‐1 location Kora Prospect structure map with strong Seismic amplitude extraction from the CSEM response over eastern feature Albian section over the Kora Pros
Slide 14: A look at the 2010 West African deal values
A look at the 2010 West African deal values For personal use only African Petroleum commits to +US$50m for 60% of 2 offshore Gambian Licences African Petroleum pays > $A500 m for Blocks 8 & 9 Dana pays US$19.6m for 23% offshore Guinea Compare to the FAR carrying value of A$15m on 6 Licences Page 14
Slide 15: FAR (90%) Senegal - Large 3D defined Prospect Inventory
FAR (90%) Senegal ‐ Large 3D defined Prospect Inventory For personal use only FAR has acquired 2050 km2 3D seismic at a cost of US$14 million in 2007 3D interpretation and slope fan attribute work completed Q1 2008 FAR moved to 90% and became Operator in December 2008 Multiple Santonian age
Slide 16: FAR's (90%) Senegal 3D defined drill targets
FAR’s (90%) Senegal 3D defined drill targets For personal use only Page 16
Slide 17: African Petroleum Gambian play overlaps into FAR Senegal Licence
African Petroleum Corp Ltd Gambian play overlaps into FAR Senegal Licence For personal use only Synergy indicates total unrisked mean recoverable potential for 2 Gambian licences ((A1,A4) , ) at 4.6 billion barrels 2500sqkm TGS Nopec FAR Senegal g 3D Gambian survey in Licence progress boundary Page
Slide 18: Guinea Bissau – FAR 15%
Guinea Bissau – FAR 15% For personal use only 3 Blocks, 5,832 sq km. Billion barrel Dome Flore discoveryy lies immediately north “Sinapa” oil discovery located in 30m off water, t P50 STOOIP off 240million 240 illi bbl 3D seismic acquisition program following up earlier 2D survey with the obje
Slide 19: Conclusion
Conclusion For personal use only FAR has established an early mover advantage in West Africa where exploration is set to intensify and big deals are being done With a market capitalisation of around $36 million and $9.3 million in the bank and leverage to a near term high leverage well at the “K