Far Ltd · ASX:FAR
Far — 23rd Africa Oil Week (November 2016)
25 slides from Far's conference presentation, Nov 3, 2016
Slide 1: World class oil discovery offshore Senegal
World class oil discovery offshore Senegal For personal use only 23rd Africa Oil Week 3 November 2016
Slide 2: 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
Slide 3: About FAR
About FAR • Africa focussed oil exploration company For personal use only • Sixth largest E&P company listed on the ASX: Market cap $335M* • SNE Field offshore Senegal World’s largest oil discovery for 2014/5 • SNE field 2C contingent recoverable oil resource 641 mmbbls (96 mmbbls net to FAR)* • 21
Slide 4: 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 • Senegal is a peaceful democracy with a stable Operator: Cairn Energy PLC outlook (S&P sovereign credit rating B+/B) and projected growth rate o
Slide 5: Hot global E&P geographies
Hot global E&P geographies For personal use only SNE-3 flow test Source: RBC Capital Markets 5
Slide 6: No production or activity offshore Senegal
No production or activity offshore Senegal For personal use only Status in mid-2014 • No offshore production • No oil exploration drilling offshore Senegal for 40 years • No deep water drilling ever offshore Senegal 6
Slide 7: FAN-1 and SNE-1 opened up Senegal
FAN-1 and SNE-1 opened up Senegal For personal use only State of discoveries 2 years later • Basin opening FAN-1 and SNE-1 oil discoveries 2014 • 4 successful SNE appraisal wells drilled 2015/6 • 100% drilling success to date • Cairn Energy (operator) NPV of US$12.5/bbl at project FID (2018/9) and U
Slide 8: Senegal geology and discovery wells
Senegal geology and discovery wells For personal use only • Gross oil-bearing interval of > 500m • No water-bearing sands intersected Shelf Edge play Fan play *Reference FAR ASX releases dated 13 Apr 2015 and 23 August 2016, best estimate, gross resources, 100% basis, oil only 8
Slide 9: Senegal geology and discovery wells
Senegal geology and discovery wells For personal use only • Gross oil-bearing interval of > 500m FAN-1 oil discovery (Oct 2014) • No water-bearing sands intersected Oil gravity 28-41 degrees API Gross oil bearing interval >500m Operator gross oil STOIIP (in place) P90: 250 mmbbls, P50: 950 mmb
Slide 10: Senegal geology and discovery wells
Senegal geology and discovery wells For personal use only SNE-1 oil discovery (Nov 2014) Oil gravity 32 degrees API • Gross oil-bearing interval Gross oilofcolumn > 500m96m • No water-bearing sands intersected FAR gross contingent resource* P90 (1C): 348 mmbbls, P50 (2C): 641 mmbbls, P10 (3C):
Slide 11: SNE 2015/16 appraisal wells
SNE 2015/16 appraisal wells For personal use only Objective of wells and progress to date: • Size of oil pool ✔ • Test reservoir properties and deliverability from logging, coring and testing ✔ • Measure field connectivity SNE field seismic cross section SNE-4 SNE-3 SNE-1 SNE-2 BEL-1 S N Drilling Ga
Slide 12: 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 13: Deliverability of oil from SNE
Deliverability of oil from SNE For personal use only Main reservoirs flowed at commercially viable rates SNE-2 lower and upper reservoirs units • Gross 12m: 8,000 bopd through 3/4“ choke (stabilised constrained flow) SNE-2 flow test • Gross 15m: 1,000 bopd through 3/8“ choke (unstabilised) • Flowed
Slide 14: Connectivity of reservoir units
Connectivity of reservoir units For personal use only Two well program planned to commence Q1 2017 Drilling program objectives: • Improving SNE project definition • Confirm volumes, ~9km connectivity and productivity: – Planned interference program between wells ● – Evaluate reservoirs not flow test
Slide 15: Appraisal results
Appraisal results For personal use only 2015/16 SNE appraisal program completed safely, efficiently and under budget Each well has confirmed: • ~100m gross oil column • High quality 32⁰ API oil • Correlation of principle reservoir units Future activity Measure field connectivity, particularly upper
Slide 16: Status of SNE development planning
Status of SNE development planning For personal use only Development planning underway • Currently in pre-FEED stage (concept select)* • Low cost environment Classification Categorisation Source: Society of Petroleum Engineers, Petroleum Resource Management System *Cairn Energy Half Yearly Result 16
Slide 17: Exploration & production value curve
Exploration & production value curve For personal use only SNE SNE-3 flow test Source: RBC Capital Markets 17
Slide 18: 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 19: 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) 19
Slide 20: 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 21: 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 *Referenc
Slide 22: Social responsibility
Social responsibility FAR and its partners are supporting activities that For personal use only 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 23: What's next in Senegal?
What’s next in Senegal? For personal use only • Two firm well program to commence early 2017 • New JV and Djiffere seismic data products • Decision to progress Djiffere option • Upgrade to prospective resource inventory • SNE Project in Pre-FEED, preparing development plan during 2017
Slide 24: 2016 revealing the prize
2016 revealing the prize For personal use only 2013: Year of farm-out 2014: Year of discovery 2015/2016: Evaluating the SNE Field 100% success rate to date offshore Senegal FAR statement on commerciality 21 months from discovery Undrilled exploration prospects with >1bn bbls potential Possible look-
Slide 25: 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: