Slide 1: FAR Capital Raising
FAR Capital Raising For personal use only October 2015
Slide 2: Disclaimer
Disclaimer For personal use only Disclaimer This presentation has been prepared by FAR Limited (‘FAR’). It is not a prospectus, disclosure document or other offering document. It does not constitute or form part of, and should not be considered to constitute or form part of, any offer, invitation or
Slide 3: Disclaimer
Disclaimer For personal use only Disclaimer The presentation does not form the basis of any contract or commitment nor shall it or any part of it or the fact of its distribution form the basis of, or be relied on in connection with, any contract or commitment or investment decisions relating thereto
Slide 4: Capital Raising Overview
Capital Raising Overview • $40 million equity raising, comprising: For personal use only • $25 million institutional placement (“Placement”) Offer Size • $15 million 1 for 17 pro-rata non-renounceable entitlement offer (“Entitlement Offer”) • Approximately 500 million new shares to be issued • Fund
Slide 5: Indicative Timetable
Indicative Timetable For personal use only Key Dates¹ Trading halt After Market, Wednesday, 21 October 2015 Institutional Placement opens After Market, Wednesday, 21 October 2015 Institutional Placement closes Thursday, 22 October 2015 Trading halt lifted Friday, 23 October 2015 Settlement of Instit
Slide 6: Sources and Uses of Funds
Sources and Uses For personal use only Sources and Uses of Funds FAR Sources and Uses of Funds 30 June 2015 to 30 June 2016 Sources A$m Uses A$m Cash (30 June 2015) 44 Senegal 69 Fx gain on cash holdings to Aug 15 2 Other Africa 2 Capital raising 40 Australia 1 Option proceeds 1 G&A 4 Total 87 Worki
Slide 7: FAR snapshot
FAR snapshot • Africa Focused: Senegal, Guinea Bissau, Kenya and Australia For personal use only • 8th Largest Pure E&P on ASX: FAR entered ASX 300 in March 2015 • FAN-1 and SNE-1: Major basin opening oil discoveries in Senegal • SNE Field Largest Oil Discovery: SNE rated No. 1 in 2014 (IHS CERA) •
Slide 8: FAR market summary
FAR market summary For personal use only Growing company Institutional Investors FAR is now the 8th largest pure E&P 3% 2% 17% 78% company listed in Australia FAR trades on the Australian stock exchange (FAR.ASX) and is included in the S&P / ASX 300 index Shareholder base Australia Rest of the World
Slide 9: Senegal
Senegal • Strong in-country relationships: FAR For personal use only has been in Senegal since 2006 OFFSHORE SENEGAL PSC 16.7% paying interest, 15% beneficial interest • Peaceful democracy: Senegal has been Operator: Cairn Energy PLC a democracy for 200 years Kosmos • Solid growth: 4.7% GDP in 2014
Slide 10: Senegal prospects and leads
Senegal prospects and leads For personal use only • PSC area 7,490 km2 • 3D seismic coverage ~2500km2 10
Slide 11: FAN-1 and SNE-1 seismic section/schematic
FAN-1 and SNE-1 seismic section/schematic FAN-1 SNE-1 For personal use only 1430m WD 1150m WD W E Buried Hill Shelf Edge Fan Source Kitchen Oil Migration Oil Traps 11
Slide 12: FAN-1 oil discovery
FAN-1 oil discovery • Proved prolific source: High quality For personal use only light oil in a stratigraphic stacked Cretaceous sand sequence • Oil gravity 28-41 degrees API • Gross oil bearing interval >500m containing discrete oil columns with no oil-water contact (29m net) • Operator gross oil (
Slide 13: SNE-1 oil discovery
SNE-1 oil discovery • Excellent reservoir average 25% For personal use only porosity in a well defined Cretaceous structural trap • Oil gravity 32 degrees API • Gross oil column of 96m (36m net) well defined gas-oil-water contacts with a text book pressure curve • Contingent recoverable resource* –
Slide 14: SNE appraisal well locations
SNE appraisal well locations For personal use only Drilling program objectives: • Prove minimum economic field size (MEFS: ~200mmbbls) • Test upside potential in SNE (3C BEL-1 ● Bellatrix resource 670mmbbls*) ● • Test overlying Bellatrix exploration prospect (P50 ● ● SNE-2 168mmbbls*) • Gain confide
Slide 15: SNE appraisal well locations
SNE appraisal well locations For personal use only N BEL-1 SNE-2 SNE-1 SNE-3 S Bellatrix SNE-2, SNE-3 and BEL-1 to be logged, cored and flow tested 15
Slide 16: Bellatrix exploration prospect
Bellatrix exploration prospect For personal use only • Strong amplitude response, conforms to structure Bellatrix unrisked prospective resources* • Buried Hills exploration Low estimate 69 mmbbls prospect directly overlies Best estimate 168 mmbbls northern extent of SNE High estimate 356 mmbbls • FA
Slide 17: Development and tie back concept
Development and tie back concept For personal use only 77mmbbl* 74mmbbl* 204mmbbl* 141mmbbl* 168mmbbl Tie * back radius 101mmbbl * *Reference FAR ASX releases dated 13 Apr 2015 best estimate, gross, unrisked prospective resources, 100% basis, oil only 17
Slide 18: Senegal economic models
Senegal economic models 18 For personal use only • Very good PSC terms 16 NPV/bbl (US$) 14 • Base planning case: 12 NPV/bbl at FID 2C resource 330mmbbls 10 8 (~50mmbbls net to FAR) 6 4 • CAPEX $17-26/bbl 2 • OPEX $5-15/bbl 0 US$90/bbl @ 2014 costs US$70/bbl@ 10% cost US$50/bbl @ 20% cost reduction r
Slide 19: Activity schedule to mid 2016
Activity schedule to mid 2016 For personal use only 2015 2016 October November December January February March April May DRILLING 3D SEISMIC acquisition processing and preliminary interpretation • Ocean Rig Athena drill ship • Commencing drill program end October • Drilling of the SNE-2 appraisal we
Slide 20: Why FAR?
Why FAR? • Committed three well Senegal drilling program with strong For personal use only potential to add material value by confirming significant resources • Extensive evaluation at the SNE-2 and SNE-3 appraisal wells consisting of reservoir coring and oil flow testing (multiple drill stem tests)
Slide 21: Board and management
For personal use only Board and management
Slide 22: Board with significant experience
Board with significant experience For personal use only Nicholas Limb Geophysicist and investment banker Non-Executive Chairman 15 years as MD/Chairman of an ASX listed, international mining company, Australia. Appointed 2012 10 years in Financial services with May and Mellor and HSBC. 38 years indu
Slide 23: Senior management
Senior management For personal use only Catherine Norman Over 20 years experience in the mineral and oil & gas exploration industry, having held executive positions both in Australia and Managing Director in the UK. Cath has carried out operating assignments in Europe, Africa, the Middle East and Au
Slide 24: 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 25: Business Risks
Business Risks For personal use only Business Risks The Company maintains a risk register that addresses the specific risks related to the following principal risks to businesses of our nature. Material business risks The international scope of the Group’s operations, the nature of the oil and gas i
Slide 26: Business Risks
Business Risks For personal use only Business Risks Joint venture risk The use of joint ventures is common in the oil and gas industry and usually exist through all stages of the oil and gas lifecycle. Joint venture arrangements, amongst other things, mainly serve to mitigate the risk associated wit
Slide 27: Business Risks
Business Risks For personal use only Business Risks Sovereign risk The Group strategy is focused on exploration in Africa. Some countries within which the Group operates are developing countries that have political and regulatory structures which are maturing and have potential for further change. U
Slide 28: International Offer Restrictions
International Offer Restrictions For personal use only International Offer Restrictions This document does not constitute an offer of new ordinary shares ("New Shares") in FAR Limited (the "Company") in any jurisdiction in which it would be unlawful. In particular, this document may not be distribut
Slide 29: International Offer Restrictions
International Offer Restrictions For personal use only International Offer Restrictions Statutory rights of action for damages or rescission Securities legislation in certain of the Provinces may provide purchasers with, in addition to any other rights they may have at law, rights of rescission or t
Slide 30: International Offer Restrictions
International Offer Restrictions For personal use only International Offer Restrictions Hong Kong WARNING: This document has not been, and will not be, registered as a prospectus under the Companies (Winding Up and Miscellaneous Provisions) Ordinance (Cap. 32) of Hong Kong, nor has it been authorise
Slide 31: International Offer Restrictions
International Offer Restrictions For personal use only International Offer Restrictions Singapore This document and any other materials relating to the New Shares have not been, and will not be, lodged or registered as a prospectus in Singapore with the Monetary Authority of Singapore. Accordingly,
Slide 32: International Offer Restrictions
International Offer Restrictions For personal use only International Offer Restrictions United Kingdom Neither the information in this document nor any other document relating to the offer has been delivered for approval to the Financial Conduct Authority in the United Kingdom and no prospectus (wit