Far Ltd · ASX:FAR
Far — Africa Independents Forum London 2017
22 slides from Far's conference presentation, May 25, 2017
Slide 1: A world class oil story
A world class oil story For personal use only Offshore oil exploration success in Senegal, future development and growth Africa Independents Forum London 24 May 2017
Slide 2: About FAR
About FAR • Publicly listed on Australian Securities Exchange (FAR:ASX) For personal use only • Fifth largest E&P on the ASX: Market capitalisation A$442M1 • Strategic focus Mauritania-Senegal-Guinea-Bissau (MSGB) Basin • 8 exploration permits in MSGB Basin • Basin opening discoveries with successfu
Slide 3: FAR in Senegal
FAR in Senegal • FAR celebrating 10 years in Senegal in 2016 For personal use only • Introduced Cairn Energy and ConocoPhillips in 2013 • Strong technical team that mapped the prospects and located the wells for the FAN-1 and SNE-1 discoveries • Drilled 9 successful wells to date • Key to unlocking
Slide 4: FAR in Senegal
FAR in Senegal • JV invested ~ US$800M in three years For personal use only FAR licences offshore Senegal, The Gambia • 9 deep water exploration/appraisal wells and Guinea-Bissau with a 100% success rate • 21 months from discovery to statement on commerciality • SNE field grown to 641mmbbls 2C resou
Slide 5: 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 • FAR 90% of RSSD acreage before Cairn and COP farm down 5
Slide 6: FAN-1 and SNE-1 opened up Senegal
FAN-1 and SNE-1 opened up Senegal For personal use only Current state of discoveries • 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 IOC to the basin • CNOOC
Slide 7: 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 7
Slide 8: Senegal geology and discovery wells: FAN-1
Senegal geology and discovery wells For personal use only FAN-1 oil discovery (Oct 2014) ➢ Oil gravity 28-41 degrees API ➢ Gross • Grossoiloil-bearing bearing interval interval of >500m > 500m • No water-bearing sands intersected ➢ Operator gross oil STOIIP (in place)* P90: 250 mmbbls, P50: 950 mmbb
Slide 9: Senegal geology and discovery wells: SNE-1
Senegal geology and discovery wells For personal use only SNE-1 oil discovery (Nov 2014)* ➢ Oil gravity 32 degrees API ➢ Gross • Gross oil-bearing oilofcolumn interval > 500m 96m • No water-bearing sands intersected ➢ Excellent reservoir rocks in 2 main families: lower (500 series) and upper (400 se
Slide 10: SNE Field evaluation program
SNE Field evaluation program For personal use only • 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 fiel
Slide 11: Size of the SNE oil field
Size of the SNE oil field 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: 67
Slide 12: Deliverability and connectivity of reservoirs
Deliverability and connectivity of reservoirs • DST’s conducted on SNE-2, SNE-3, SNE-5, SNE-6 For personal use only • Pressure gauges installed in SNE-3 and SNE-5 • Lower reservoirs flowed at world class rates (SNE-2) • Deliverability and connectivity of upper reservoirs completed in May 2017 SNE-5
Slide 13: SNE Appraisal results summary
SNE Appraisal results summary For personal use only • All appraisal wells proved 97m gross oil column SNE Field at S460 • MEFS of 200mmbbls passed reservoir level showing Sirius and • 2C resource 641mmbbls* and scope to increase Spica Prospects • Deliverability of reservoirs understood – world class
Slide 14: Efficient drilling, costs coming down
Efficient drilling, costs coming down For personal use only • Currently using the 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 dri
Slide 15: Looking forward to development of SNE
Looking forward to development of SNE For personal use only • Results from interpretation of final appraisal wells expected in Q3 2017 • Development planning underway • Development concept is FPSO (Floating Production, Storage and Offtake vessel) with subsea tie backs • Total expected capital expend
Slide 16: First pure exploration well planned since 2014
First pure exploration well planned since 2014 For personal use only • FAN South-1 on the South Fan prospect to be drilled next • South Fan prospect mapped to contain 134 mmbbls oil* • South Fan within tie back range to SNE development • 500m of oil intersected in the FAN-1 well – prolific, oil sour
Slide 17: Growing the portfolio: The Gambia
Growing the portfolio: The Gambia For personal use only • In line with FAR’s strategy to focus on NW African shelf following Senegal success • Farm-in to 80% interest with operator rights • Well at end 2018 • Large equity position gives FAR options to farm down • 1,500km2 existing 3D seismic (2015)
Slide 18: Extension of the SNE shelf edge trend
Extension of the SNE shelf edge trend • On trend with SNE – same play For personal use only • Access to same source kitchen • Highly prospective • High chance of success • Reservoirs now penetrated by 8 wells 18
Slide 19: Extension of the SNE shelf edge trend
Extension of the SNE shelf edge trend For personal use only • 1 billion barrels of oil prospectivity mapped to date* Spica • Sama prospect defined on 3D seismic 500mmbbls recoverable* • Well to be drilled end 2018 • Dry hole well costs US$25-$30M *Gross, unrisked, recoverable, best estimate of prosp
Slide 20: 2017 revealing the prize
2017 revealing the prize 2013: Year of farmout For personal use only 2014: Year of discovery 2015-2017: Evaluating the SNE Field 2017-2019: Development planning and studies 2019-2021: Engineering, financing & construction 2021: First oil from Phase 1 SNE development 100% success rate to date offshor
Slide 21: 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 22: 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