Far Ltd · ASX:FAR
Far — Africa E&P Summit 2019
17 slides from Far's conference presentation, May 22, 2019
Slide 1: Strategy for continued growth and exploration success
Strategy for continued growth and exploration success Africa E&P Summit London 22 May 2019
Slide 2: About FAR
About FAR FAR Limited is an Australian independent, Africa focused, oil and gas exploration and development company with core assets off the coast of Senegal and The Gambia. FAR’s area of focus is in the emerging Mauritania, Senegal, Guinea-Bissau, Conakry (MSGBC) Basin. FAR made the world-class SNE
Slide 3: FAR in the MSGBC Basin today
FAR in the MSGBC Basin today • Strategic focus in the MSGBC Basin FAR LICENCES OFFSHORE SENEGAL, • FAR in Senegal since 2006, Guinea-Bissau THE GAMBIA & GUINEA-BISSAU since 2008 and The Gambia since March 2017 • Basin opening FAN-1 and SNE-1 oil discoveries in 2014, FAR now 15% WI • 12 wells drilled
Slide 4: FAR in Senegal, 2012
FAR in Senegal, 2012 Cons • No offshore wells for nearly 40 years • No deep water wells ever drilled in Senegal • FAR acreage available for farm-in since 2007 with no success • Drilling bond of US$5M required to retain permit • If we committed, FAR would have 90% equity, 100% liability for a deep wa
Slide 5: MSGBC Basin Source rocks
MSGBC Basin Source rocks POOR EXCELLENT GOOD FAIR COAL UNBELIEVABLY GOOD* OUTSTANDING* EXCELLENT GOOD EXCELLENT COAL GOOD FAIR POOR Senegal source rocks *FAR internal nomenclature 5
Slide 6: FAR in Senegal – the catalyst for a regional focus
FAR in Senegal – the catalyst for a regional focus • FAR built a prospect portfolio based on 3D seismic • Prospects included Lupalupa on the shelf edge which later became SNE • Cairn very keen on the area but not interested in the deepwater • ConocoPhillips was only interested in the deep water play
Slide 7: SNE/FAN key learnings for regional prospectivity
SNE/FAN key learnings for regional prospectivity • Excellent, thick source rocks in FAN-1 • Effectiveness of source rocks demonstrated by giant discoveries in FAN and SNE • 32 degree API oil in SNE – good quality oil (and large gas cap) • Source rocks interpreted to be widespread - positive outlook
Slide 8: Opportunity following discovery
Opportunity following discovery • Apparent that SNE was a major oil discovery • This shelf edge play had been overlooked by the industry and there was a narrow time window within which we could act to secure acreage before word leaked out • Immediate action to target acreage within this play fairway
Slide 9: Preparing a growth strategy
Preparing a growth strategy • First offshore well in Senegal provided new data • Strong in country relationships • Extensive database in region • Ability to quickly integrate well data and inform regional view • Small team has allowed the company to be nimble and make quick decisions • Access to cap
Slide 10: Main challenge to growth strategy 2014-2019
Main challenge to growth strategy 2014-2019 • The perfect storm – and not Brent Market Cap US$/bbl US$M in a good way! $600 • Access to capital $500 • Severe slump in oil price one month after SNE $400 discovery $300 • Global changes in exploration appetite $200 • Exploration drilling costs $100 • G
Slide 11: Executing the strategy
Executing the strategy • Immediate focus on extension of SNE trend and protection acreage – Executed option deal for Djiffere block offshore Senegal – Commenced discussions with title holders for Gambia blocks A2/A5 • Focus on stabilising/updating licence terms – Upgraded Guinea-Bissau licence terms
Slide 12: Results of growth strategy to date
Results of growth strategy to date • Senegal – Retained 15% of SNE Field – 15% of FAN, FAN South and SNE North discoveries – SNE fully appraised and FID H2 2019 • The Gambia – 2017 FAR operator and 80% WI blocks A2/A5 – 2018 Farmed 40% WI down to PETRONAS – 2018 drilled first well for 40 years – FAR
Slide 13: 2019 – An industry hotspot, increased activity
2019 – An industry hotspot, increased activity • Cairn/ConocoPhillips join FAR 2013 • FAN and SNE discoveries 2014 • FAN South and SNE North discoveries 2017 • 7 successful SNE appraisal wells drilled over 2015/16/17 • Senegal JV invested ~US$1bn to date • Major gas discoveries made in 2015, 2016, 2
Slide 14: Community & social programs
Community & social programs Investing in education & training, enterprise & Renovated a primary school community development programs in the regional city of Thiess, through our Senegal joint venture Senegal Sponsored regional soccer competitions through provision of 200 balls and uniforms
Slide 15: Future growth and exploration
Future growth and exploration • Mature SNE development to Final Investment Decision in H2 2019 (and first oil 2022) • Finalise funding plans for SNE Field development • Drill an exploration well in Guinea- Bissau, early 2020* • Plan for 2020 well offshore Gambia* • Maximise opportunities from curren
Slide 16: Contact us
Contact us Level 17, 530 Collins Street Connect with FAR Limited: Melbourne VIC 3000 Australia T: +61 3 9618 2550 info@far.com.au far.com.au
Slide 17: 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 considered as an offer or invitation to subscribe for or purchase any shares in information which you may require in order to make an i