Far Ltd · ASX:FAR
Far — First Australian Resources — Shareholder Meeting (May 2009)
28 slides from Far's shareholder meeting presentation, May 28, 2009
Slide 1: First Australian Resources Ltd – World Class Leverage
For personal use only First Australian Resources Ltd “World Class Leverage” AGM Presentation May 2009 1
Slide 2: Disclaimer
DISCLAIMER For personal use only ¾ 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”). ¾ This presentation contains
Slide 3: Overcoming Adversity
For personal use only Overcoming Adversity 3
Slide 4: What Confronted FAR Late 2008
What Confronted FAR Late 2008: •Sudden withdrawal by Hunt •Senegal Licence expiry For personal use only •Global oil and gas price collapse •Global Finance Market Meltdown •Impending China Cash Calls •Maturing Convertible Note •Institutional sell down 4
Slide 5: What FAR did – Goals we set
What FAR did – Goals we set: For personal use only • Secure an extension on Senegal • Acquire Hunt’s 60% and take on Operations • Locate a farm-in partner for Senegal • Secure Senegal Regulatory Consents • Reduce Expenditures and Commitments • Sell China and eliminate development calls • Roll the Co
Slide 6: Our Success Rate In Meeting These Goals
Our Success Rate In Meeting These Goals For personal use only 100% 6
Slide 7: A Case Study in Finding a Major – What it takes!
A Case Study in Finding a Major – What it takes! For personal use only In excess of 100 email exchanges Execution of a Confidentiality Agreement Exchange of 250 Gigabytes of Seismic data Months of due diligence and technical review 2 non binding letters of intent Multiple teleconferences across 4 co
Slide 8: A Case Study in Finding a Major (part 2)
A Case Study in Finding a Major – What it takes! (part 2) For personal use only Multiple face to face meetings involving Ministries, Senior Executives of Shell, EMGS and Directors of National Oil Company of Senegal conducted in 3 languages. Multiple approvals within Major including: New Ventures Glo
Slide 9: Concurrent negotiations for sale of offshore China interests
For personal use only “While we were bedding down Senegal we were running concurrent negotiations for the sale of our offshore China interests - a project with a negative NPV on date of sale” 10
Slide 10: Cutting costs and reducing expenditures
“We were also cutting costs and reducing expenditures:” For personal use only CEO took a 20% pay cut Admin Mgr a 30% pay cut Senior geological consultant 25% cut Audit Fees were frozen Discretionary spending moved toward zero All travel within Australia to discount economy Numerous other cost measur
Slide 11: Market Recognition Followed
For personal use only “Market Recognition Followed” 12
Slide 12: Share Price Versus Index & Peers
SHARE PRICE VERSUS INDEX & PEERS PERFORMANCE CHART (22 DEC 08 - 22 MAY 09) For personal use only 350.0 18.0 16.0 300.0 Share Price - rebased to 100 14.0 250.0 12.0 10.0 200.0 8.0 150.0 6.0 4.0 100.0 2.0 50.0 0.0 ay an an eb eb ec ay ar ar pr pr r n Ap Ja -M M -A -A -M -D M -F -F -J -J 1- 2- 6- 8- 14
Slide 13: Overview of FAR today - after meeting goals
Overview of FAR today - after meeting goals Capital Structure (May 2009) For personal use only • SHELL joins FAR on world class offshore Shares on issue 646,088,344 Senegal Project Share price 7 cents $0.08 Market capitalisation $49,748,802 • Senegal Project has multiple prospects Cash on hand* $13,
Slide 14: Senegal
For personal use only Senegal 15
Slide 15: Offshore Senegal, West Africa
Offshore Senegal, West Africa • FAR (90%) Operator - only ASX entry in this world class play offshore Senegal For personal use only • Petrosen (NOC) (10%) – SHELL may earn 70% by carrying FAR for 20% in a well • Currently in 2nd phase of license with extension through to November 2009 • The Sangomar
Slide 16: Case Study – Hardman Resources with Oil Price Overlay
Case Study – 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 Oil Plc For personal use only in 2006 (started with adjacent Mauritania Project) Feb 2006
Slide 17: Boa Thalassa – purpose built CSEM vessel at Port Dakar
Boa Thalassa – purpose built CSEM vessel at Port Dakar Senegal For personal use only 20
Slide 18: Senegal – Stable Environment
Senegal – Stable Environment • Dakar, capital city of Senegal and former capital of French West Africa, is located on the For personal use only westernmost point of Africa, and is known as a gateway to the African continent • A semi-arid country, with a population estimated at more than 10 million,
Slide 19: Senegal 3D Proves-up Massive Prospects
Senegal 3D Proves-up Massive Prospects • Acquired 2050 km2 3D seismic at a cost of US$14 million in 2007 For personal use only • 3D interpretation and Slope fan attribute work completed Q1 2008 • FAR moves to 90% and becomes Operator December 2008 • Government Approves CSEM Program April 2009 • Cont
Slide 20: Senegal Targets
For personal use only Senegal Targets 24
Slide 21: A Brief Overview of Marine Controlled-Source EM
A Brief Overview of Marine Controlled-Source EM For personal use only The CSEM technique aims to map the resistively up to 2 - 3 km below the sea floor to help identify potential hydrocarbon accumulations.
Slide 22: China
For personal use only China 26
Slide 23: Offshore China Block 22/12 Sold
Offshore China Block 22/12 Sold For personal use only FAR 5%* sold to Korean Group in April 2009 for US$ 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
Slide 24: North America
For personal use only North America 28
Slide 25: US Gulf Coast & Alberta, Canada
US Gulf Coast & Alberta, Canada For personal use only • FAR has built a mature exploration and production business in the US over almost two decades of doing business in Texas and Louisiana, and in 2005 established an office in Huston, Texas • FAR’s primary focus in the US has recently been on near
Slide 26: Summary
For personal use only Summary 30
Slide 27: Summary
Summary For personal use only • FAR has a 90% interest in 3 concessions offshore Senegal: • 2,050 sq km of 3D processed data • mapped multiple prospects including: • 3D defined Aptian shelf edge prospect, mean potential exceeding 1 billion barrels of oil in place; and • Fan systems such as 3D mapped
Slide 28: More info at www.far.com.au
For personal use only More info at www.far.com.au 32
First Australian Resources — Shareholder Meeting (May 2009) on 6ix