Far Ltd · ASX:FAR
Far — Melbourne Mining Club Cutting Edge Series (March 2016)
21 slides from Far's conference presentation, Mar 16, 2016
Slide 1: The world's largest oil discovery 2014
The world’s largest oil discovery 2014 For personal use only Melbourne Mining Club Cutting Edge Series 15 March 2016
Slide 2: FAR snapshot
FAR snapshot For personal use only • Two major basin opening oil discoveries in Senegal in 2014 • SNE Field largest global oil find since discovery in 2014 • SNE Appraisal drilling commenced 2015 • Quality partners in Senegal discoveries: ConocoPhillips, Cairn Energy, Petrosen • Fifth largest pure E
Slide 3: FAR relative performance
FAR relative performance For personal use only FAR: 0.13 12.0cps +40% 0.12 Ocean rig Athena 0.11 contracted for 3 firm SNE 0.10 wells appraisal drilling commences Share price (A$p.s.) 0.09 0.08 Brent oil: 0.07 US$39.70 (31%) 0.06 0.05 ASX 200 Energy: 7,960 (31%) 0.04 0.03 Jan-15 Feb-15 Mar-15 Apr-15
Slide 4: SNE Oil field footprint
SNE Oil field footprint > 300 km2 For personal use only 4
Slide 5: Senegal
Senegal For personal use only • Strong in-country relationships OFFSHORE SENEGAL Production Sharing Contract (PSC) • Peaceful democracy FAR: 15% working interest, 16.7% paying interest • Solid growth: 4.7% GDP in 2014 • S&P sovereign credit rating 'B+/B‘ • First offshore exploration wells for 40 yea
Slide 6: Senegal prospects and leads
Senegal prospects and leads • Contract area 7,490 km2 For personal use only • Over 1 billion barrels of P50 prospective resources yet to be drilled* *Reference FAR ASX releases dated 13 Apr 2015 best estimate, gross, unrisked prospective resources, 100% basis, oil only 6
Slide 7: Geological setting
Geological setting For personal use only W SNE-2 SNE-1 SNE-3 BEL-1 E Buried Hills play Shelf Edge play Fan play 10km 7
Slide 8: FAN-1 Discovery
FAN-1 Discovery For personal use only W FAN-1 – FAN-1 SNE-2 SNE-1SNE-3 well BEL-1 drilled first 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 10km – De-r
Slide 9: SNE-1 Discovery
SNE-1 Discovery For personal use only W FAN-1 SNE-1 E SNE Field – Result announced Nov 2014 – Largest oil discovery for 2014 – Has not been surpassed to date 10km – Over 300 km2 footprint 9
Slide 10: SNE-1 oil discovery
SNE-1 oil discovery For personal use only • Results announced Nov 2014 • Excellent reservoir • Oil gravity 32 degrees API • Gross oil column of 96m (36m net) • Contingent recoverable resource* – P90 (1C): 150 mmbbls – P50 (2C): 330 mmbbls – P10 (3C): 670 mmbbls *Reference FAR ASX releases dated 13 A
Slide 11: SNE Field: Contingent resources updated
SNE Field: Contingent resources updated For personal use only Nov 2014 Feb 2016 P90 (1C): 150 mmbbls P90 (1C): 240 mmbbls (+60%) P50 (2C): 330 mmbbls P50 (2C): 468 mmbbls (+40%) P10 (3C): 670 mmbbls P10 (3C): 940 mmbbls (+40%) *Reference FAR ASX releases dated 13 Apr 2015, 8 Feb 2016: best estimate,
Slide 12: SNE appraisal well locations
SNE appraisal well locations For personal use only Objective of wells: – Size of oil pool – Test reservoir properties and deliverability from logging, coring and testing ● – Plan for measuring field connectivity ● N BEL-1 SNE-2 SNE-1 SNE-3 S Bellatrix ● 12
Slide 13: SNE-2 Appraisal well
SNE-2 Appraisal well • Excellent flow from two For personal use only independent drill stem tests (DST) – Gross 12m zone: 8,000 bopd stabilised and constrained, interpreted flow > 10,000 bopd – Gross 15m zone: 1,000 bopd unstabilised • Flow considerably greater than prognosis • Confirmed commerciall
Slide 14: SNE-3 Appraisal well
SNE-3 Appraisal well • Excellent flow from two drill stem For personal use only tests (DST) 3 – Gross 15m zone: 5,400 bopd max and 4,000 bopd stabilised – Increased to gross 20.5m zone: 4,500 bopd stabilised • Flow greater than prognosis • Confirmed commercially viable flow rates • 32 degrees API •
Slide 15: Bellatrix exploration prospect
Bellatrix exploration prospect For personal use only • Strong seismic amplitude response • Overlies SNE Field • Chance of discovery 49% • Follow up potential from several look-a-likes • Prospective resource* – Low estimate : 69 mmbbls – Best estimate: 168 mmbbls – High estimate: 356 mmbbls Bellatrix
Slide 16: Development and tie back concept
Development and tie back concept For personal use only 77mmbbl* 74mmbbl* 204mmbbl* 141mmbbl* Tie back 168mmbbl* radius 101mmbbl* *Reference FAR ASX releases dated 13 Apr 2015 best estimate, gross, unrisked prospective resources, 100% basis, oil only 16
Slide 17: Senegal economics
Senegal economics For personal use only • Excellent PSC terms • Minimum Economic Field Size (MEFS) approx 200mmbbls • CAPEX coming down • NPV/bbl of US$10 at US$50/bbl oil price and reduced CAPEX* • Estimated first oil 2021 *Reference Cairn Energy Capital Markets Day 2015/6 17
Slide 18: Capturing more shelf edge exposure
Capturing more shelf edge exposure For personal use only • New 3D seismic acquired 2015 • FAR bought option over neighbouring Djiffere permit 18
Slide 19: 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 offshore Senegal • Undrilled exploration prospects with >1bn bbls potential • Possible lookalikes of SNE in FAR’s Guinea Bissau acreage • FAR com
Slide 20: 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 21: Disclaimer
Disclaimer • 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 For personal use only considered as an offer or invitation to subscribe for or purchase any shares in information which you may require
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