Far Ltd · ASX:FAR
Far — First Australian Resources — Shareholder Meeting (May 2010)
35 slides from Far's shareholder meeting presentation, May 24, 2010
Slide 1: First Australian Resources Ltd AGM Presentation
First Australian Resources Ltd AGM Presentation 24 May 2010 1
Slide 2: Disclaimer
DISCLAIMER This presentation does not constitute an offer to sell securities and is not a solicitation of an offer to buy securities. It is not to be distributed to third parties without the consent of First Australian Resources Limited. (“FAR”). This presentation contains forward-looking statem
Slide 3: FAR keeps focus in volatile environment
FAR keeps focus in volatile environment Capital Structure (24 May 2010) • farmout marketing progresses on Shares on issue 658,232,784 world class offshore Senegal Project Share price $0.063 Market capitalisation $41,468,665 with multiple prospects ( up to 1 Cash on hand* $11,000,000 billion BOE oil
Slide 4: Turbulent Times
GOM Turbulent Times FAR share price Disaster Oil Price Aud$ 4
Slide 5: Market Comment
Market Comment “the fear-driven sell-off that has taken place over the past fortnight has been nothing short of remarkable, even more so given that there has not been a single identifiable cause for the slide. The oil price has been in free-fall, dropping almost 20% in just 10 days. To find an equiv
Slide 6: Let's focus on: Oil Exploration Success Stories?
Let’s focus on: Oil Exploration Success Stories? 6
Slide 7: Tullow - a West African Success Story
Tullow - a West African Success Story 5yrs 588% 1yr 167% In 2009, Tullow drilled a total of 15 exploration and appraisal wells, achieving an industry leading 87% success rate. Market cap from 1 – 11 Billion Pounds in 5 years Two Billion barrel plus discoveries in Africa Where did Tullow start ? Sene
Slide 8: Oil pacesetter secures Exploration Blocks along the Atlantic Margin
Oil pacesetter secures Exploration Blocks along the Atlantic Margin Tullow Blocks FAR Blocks Well 2010 8
Slide 9: Tullow swallows Hardman Resources with Oil Price Overlay
Tullow swallows Hardman Resources with Oil Price Overlay Senegal gives FAR the opportunity to replicate the success of Hardman Resources Hardman market cap $10 million in 1999, market bid of $1.5 billion by Tullow in 2006 Feb 2006. $3.00 $90.00 Sep 2004. Commence oil 10 times uplift in Oil discovery
Slide 10: Prospective Deepwater basins
? Prospective Deepwater basins (purple) 10
Slide 11: Making News - Good News for FAR
MAKING NEWS!! – GOOD NEWS FOR FAR ASX Blocks African Petroleum proposal!! IHS Global, has determined two Liberian exploration blocks (7,200 sq km) have potential for combined un-risked total P50 recoverable prospective resources 1875 million barrels with a range of 945 (P90) to 3043 (P10) million ba
Slide 12: Comparison: FAR v GFE
Comparison: FAR v GFE ASX Code Licenses Senegal Guinea Bissau Liberia Total Area (Sq km) Senegal Guinea Bissau Liberia Total Proven Reserves 3D Defined Prospects Prospect Potential (P10) (Billion Barrels) Senegal Guinea Bissau Liberia Total Valuation Enterprise Value 3.04 3.04 $30,000,000 $500,000,0
Slide 13: Recent Important Events (West Africa)
Recent Important Events (West Africa) 1. Venus Discovery – Sierra Leone (Anadarko up $4 on announcement) 2. Jubilee (offshore Ghana) approaches 1.8 Billion barrels 3. Anardarko drills deepwater well in under 20 days 4. Ophir gets approval to drill deepwater well adjacent to FAR – planned 2nd half 20
Slide 14: ASX share prices respond to West African exploration
ASX share prices respond to West African exploration ASX: RIA enters Ghana 14
Slide 15: Senegal
Senegal 15
Slide 16: FAR commences marketing PSC blocks in September 2009
FAR commences marketing PSC blocks in September 2009 to bring in a partner to drill well. Project Flyer distributed to specific targeted companies.
Slide 17: Presidential Decree extension and farmin conferences
Following Presidential Decree granting one year Extension to First Renewal Period to November 23, 2010 FAR exhibits farmin opportunity in multiple conferences
Slide 18: FAR retains ENVOI to broaden marketing push
FAR retains ENVOI to broaden marketing push “We have 13,373 contacts in our data base with 250 +\- companies worldwide that are serious international players (capable of operating a deep water project!) “
Slide 19: FAR's Senegal Positives
FAR’s Senegal Positives: Maximum equity (90%) from which to deal Large acreage position (7,490 sq km) Over US$21m in 3D seismic and CSEM Operatorship available PSC Extended to 23 Nov 2010 - commitments satisfied Drill ready prospects comprising different play types Recent discoveries along the margi
Slide 20: Offshore Senegal, West Africa
Offshore Senegal, West Africa • FAR (90%) Operator - only ASX entry in this world class play - Petrosen (NOC) (10%) • Currently in 2nd phase of license extended to 22 November 2010 • The Sangomar-Rufisque offshore licence (3 concessions) covers an area of 7,490 sq km over the shelf, slope, and basin
Slide 21: Senegal 3D Proves-up Massive Prospects
Senegal 3D Proves-up Massive Prospects • 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 moves to 90% and becomes Operator December 2008 • Shell funded CSEM program acquisition May 2009 • Shell withdraws August
Slide 22: Senegal Targets
Senegal Targets INFERRED GEOLOGICAL MODEL FOR THE LATE CRETACEOUS oan ie TERTIARY 10 km Rufisaue tion Onshore Upper Cretaceous delta systems Slope channel systems Lower Cretaceous carbonate shelf jnargin » Structural closufes Albian/Aptian Carbonates NeocomianiJurassic Carbonates i. Aptian ensehes W
Slide 23: Guinea Bissau
Guinea Bissau (OIL PRONE) 24
Slide 24: T T T
T T T 18°W 17°W ( 16°W 15°W SENE| SINAPA equity paying Svenska 55.0% 78.57% y es FAR 15.0% 21.43% " _.~ Msconngess| Petroguin 30% 0% ~] Cheval Marin AGIP GUINEA - BISSAU oe + 12°N | su ’ = Bissau ae a = bigs Srape 1 snaps? ESPERANCA equity paying | Svenska 55.0% 78.57% |} / FAR 15.0% 21.43% Petrogui
Slide 25: Sardinha/Sabayon and Cabacera/Bichir Prospects
Recent Acquisition and Processing 2D Geostreamer Seismic Cabacera/Bichir Prospect Sardinha/Sabayon Prospect 2D Sinapa Existing Discovery 3D Outline Propose 600SqKm 3D 26 Outlin
Slide 26: Sinapa Discovery (P50 STOOIP 240mmbo)
Sinapa Discovery (P50 STOOIP 240mmbo) Sinapa 2z Sinapa 2 Salt Core Potential Oil Column ca 800m Free Water Level 1Km 27 No
Slide 27: Sinapa Discovery Depth Structure on Top Albian Reservoir
Sinapa Discovery Depth Structure on Top Albian Reservoir (2009 Mapping) Sinapa 2 Free Water Level SALT Outline of Existing 3D seismic survey, CORE Sinapa 2z currently undergoing reprocessing N 5 Km
Slide 28: Sinapa and Esperance Licenses Forward Project Timeline
Sinapa and Esperance Licenses Forward Project Timeline • 3rd - 4th Q 2010 commence 3D seismic Sardinha, Sinapa & Cabacera • Late 2010 Process and interpret 3D surveys. • 2011 Work towards drilling locations on either Sinapa, Cabacera or Sardinha. • 1st-2nd Q 2012 Drill two wells (as above) in single
Slide 29: Sinapa – potential future development
Sinapa – potential future development Consider Jack Up rig drilling with MOPU (Mobile Offshore Production Unit) in place Drilling Rig MOPU Benign seas 30m water depth 30
Slide 30: Operator: Svenska
Operator: Svenska • The operator, Svenska Petroleum Exploration, is a private Swedish oil and gas company engaged in offshore exploration and production of oil and gas worldwide. Currently, it has activities in Angola, the Ivory Coast, Nigeria, Guinea Bissau, Congo Brazzaville, the Baltic Sea and No
Slide 31: Sheikh Mohammed H. Al Amoudi
Sheikh Mohammed H. Al Amoudi • Svenska is fully owned by Sheikh Mohammed H. Al-Amoudi • Sheikh Mohammed is currently 43rd richest person in the world • Largest foreign investor in Sweden, largest investor in Ethiopia • Holdings include Oil Refining (Sweden and Morocco), Construction (Sweden, Ethiopi
Slide 32: Guinea Bissau
• Guinea Bissau • The Republic of Guinea Bissau has a population of around 1.5 million and with its capital Bissau lies on the west coast of Africa between Guinea Conakry to the south and Senegal to the north. Independence from Portugal was gained in 1974. • Elections which are held every five years
Slide 33: China
China 34
Slide 34: Offshore China Block 22/12 Sold
Offshore China Block 22/12 Sold FAR 5%* sold to Korean Group in April 2009 for US$ 8million payable: •US$2 million received •US$3 million upon approval of an Oilfield Development Program (“ODP”) or if commercial development of the project proceeds •US$3 million once the project has produced 1 millio
Slide 35: Summary
Summary • FAR has a 90% interest in 3 concessions offshore Senegal where farmout discussions are progressing : • mapped multiple prospects including: • 3D defined Aptian shelf edge prospect, mean potential exceeding 1 billion barrels of oil in place; and • Fan systems with mean potential exceeding 1
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