Far Ltd · ASX:FAR
Far — Noosa Mining & Exploration Conference 2015
20 slides from Far's conference presentation, Jul 16, 2015
Slide 1: Investor Presentation – Noosa Mining & Exploration Conference
Investor Presentation Noosa Mining & Exploration Conference For personal use only 16-17 July 2015
Slide 2: FAR snapshot
FAR snapshot For personal use only • Mid cap E&P: FAR entered the ASX 300 Index in March 2015 • Strong balance sheet. Cash balance A$52.5m (March qtr). No debt • Africa focused: Senegal, Guinea Bissau, Kenya and Australia • FAN-1 and SNE-1: New basin opening oil discoveries in Senegal • World’s larg
Slide 3: FAR performance and Capital Structure
FAR performance Capital Structure For personal use only 7 Oct 14: FAN-1 oil discovery ASX Ticker FAR gross oil interval of 10 Nov 14: $0.16 more than 500m, SNE-1 oil discovery; Share price (13 July 2015) A$0.08 net oil pay 29m 95m gross oil column, (A$ per share) net oil pay 36m Market cap (13 July
Slide 4: FAR in Africa
FAR in Africa For personal use only • A wide portfolio with significant African experience SENEGAL KENYA FAN-1 and SNE-1 Large equity • Focus on Senegal and NW oil discoveries, position in extensive running emerging basin Africa following discoveries room • FAR has strong relationships as GUINEA-BIS
Slide 5: Senegal
Senegal For personal use only • PSC area 7,490 km2 : Sangomar, RUFISQUE, SANGOMAR & SANGOMAR DEEP OFFSHORE 16.7% paying interest, 15% beneficial interest Sangomar Deep and Rufisque blocks Operator: Cairn Energy PLC • US$196M farm-out: Two successful wells plus US$10M in cash to FAR Kosmos Tortue-1 •
Slide 6: FAN-1 and SNE-1 seismic section/schematic
FAN-1 and SNE-1 seismic section/schematic FAN-1 SNE-1 For personal use only 1430m WD 1150m WD W E Buried Hill Shelf Edge Fan Source Kitchen Oil Migration Oil Traps 6
Slide 7: FAN-1 oil discovery
FAN-1 oil discovery • Proved prolific source: High quality For personal use only light oil in a stratigraphic stacked Cretaceous sand sequence • Oil gravity 28-41 degrees API • Gross oil bearing interval >500m with no oil-water contact encountered (29m net) • Operator gross oil (STOIIP) in place – P
Slide 8: SNE-1 oil discovery
SNE-1 oil discovery • World’s largest oil discovery in For personal use only 2014 (IHS CERA) • Very good reservoir in a well defined Cretaceous structural trap • Oil gravity 32 degrees API • Gross oil column of 96m (36m net) with a gas cap • Contingent recoverable resource – P90: 150 mmbbls – P50: 3
Slide 9: SNE top reservoir
SNE top reservoir For personal use only • Strong conformance of amplitude with structure • Pre-drill estimate 154 mmbbls (gross) (best estimate prospective resource)* • Pre drill estimate at amplitude anomaly came from gas cap only • Post drill field estimated to be significantly larger after discov
Slide 10: SNE appraisal drilling
SNE appraisal drilling For personal use only • Aimed to achieve declaration of commerciality to prove minimum economic field size (MEFS) • Operator MEFS ~200mmbbls • Low risk appraisal: 1C resource is 150mmbbls, 2C resource 330mmbbls • Flow testing (DST’s) and coring • Each well may take ~40 days to
Slide 11: SNE economics
SNE economics* 18 For personal use only • SNE has robust economics 16 NPV/bbl (US$) 14 • Base assumption is 12 330mmbbls (50mmbbls net)* NPV/bbl at FID 10 8 • CAPEX $17-26/bbl 6 4 • OPEX $5-15/bbl 2 0 • US$10 NPV/bbl at US$70 oil US$90/bbl @ 2014 costs US$70/bbl@ 10% cost reduction US$50/bbl @ 20% c
Slide 12: The shelf and fan area
The shelf and fan area FAN-1 SNE-1 For personal use only Sirius Bellatrix Soleil Central South Fan Fan 12
Slide 13: Senegal prospects
Senegal prospects For personal use only • Extensive prospect inventory – >1.5 bn barrels of gross unrisked prospective resources mapped on high quality 3D seismic 77mmbbl* • Two distinct play types on shelf 74mmbbl* – Buried Hills (e.g. Bellatrix) 204mmbbl* – Shelf Edge (e.g. SNE look-a-likes) 141mm
Slide 14: Senegal undrilled prospect inventory
Senegal undrilled prospect inventory* For personal use only Unrisked Best Risked Best Low Best High FAR Estimate Prospective Estimate Prospective Area Target Estimate Estimate Estimate Working Resources net to FAR Chance of Resources net to FAR Prospect (km2) Reservoir (mmbbls) (mmbbls) (mmbbls) Int
Slide 15: Bellatrix prospect
Bellatrix prospect For personal use only • Buried Hill play Bellatrix unrisked prospective resources* • Strong amplitude response Low estimate 69 mmbbls • Amplitude conforms to structure Best estimate 168 mmbbls High estimate 356 mmbbls • Prospect overlies northern extent of S N SNE field *Reference
Slide 16: Sirius prospect
Sirius prospect For personal use only S N • Shelf edge play • “Lookalike” to SNE • Amplitude conforms A to structure Sirius prospect B • On trend with the SNE field SNE Field A Up-dip seal, proven B to work at SNE-1 Sirius unrisked prospective resources* Low estimate 84 mmbbls Best estimate 204 mmbb
Slide 17: Senegal project timetable
Senegal project timetable For personal use only Evaluation Exploitation DOC for SNE field 2014 2015 2016 2017 2018 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Drilling of FAN-1/SNE-1 FAN-1/SNE-1 data analysis Well planning Reprocessing existing 3D seismic Drilling of SNE-2, SNE-3, Be
Slide 18: 2015 revealing the prize
2015 revealing the prize For personal use only • SNE was the number one oil discovery worldwide in 2014 • Appraisal of SNE starts 4Q 2015 • 100% success rate offshore Senegal (2 new oil field discoveries from 2 exploration wells) • Firm commitment to drill two low risk SNE appraisal wells and one ne
Slide 19: 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 20: 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