Far Ltd · ASX:FAR
Far — Investor Presentation (February 2020)
25 slides from Far's investor presentation, Feb 21, 2020
Slide 1: Investor Presentation – Sangomar Phase 1
21 February 2020 Investor Presentation – Sangomar Phase 1 In accordance with the Listing Rules, FAR Limited (ASX: FAR) releases the attached announcement relating to the above. This announcement has been approved for release by the FAR Limited disclosure committee.
Slide 2: Investor Presentation Sangomar Phase 1
Investor Presentation Sangomar Phase 1 21 February 2020
Slide 3: Introduction
Introduction FAR is an Africa focused oil and gas exploration and development company. Its principal asset is the Sangomar Oil Field offshore Senegal, with exploration interests in The Gambia and Guinea-Bissau Market data (2) A$ US$ Share Price $0.031 $0.021 Market capitalisation $309m $207m Cash $1
Slide 4: Investment highlights
Investment highlights FAR is developing one of the largest offshore oil discoveries of the last ten years (Sangomar), which post project delivery in early 2023 is expected to make FAR one of largest ASX-listed oil producers Final Investment Decision taken in January 2020 for the world class Sangomar
Slide 5: Sangomar – a phased development strategy
Sangomar – a phased development strategy The joint venture intends to conduct a phased development strategy at the Sangomar Oil Field in order to reduce execution risks and upfront capital requirements Phased development strategy (1) P50 resource position (2) (gross)… Phased development strategy des
Slide 6: Sangomar Field development: Phase 1
Sangomar Field development: Phase 1 The Sangomar Oil Field will be developed using a conventional development concept which involves 23 subsea production and injection wells tied back to an FPSO (1) Sangomar Phase 1 oil development: Sangomar Phase 1 development concept – 231 mmbbls reserves (2P) and
Slide 7: Sangomar – phase 1 development timeline
Sangomar – phase 1 development timeline The joint venture is targeting first oil from the Sangomar Oil Field in early 2023 2020 2021 2022 2023 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 FID taken Key project Full Notice to Proceed (FNTP) for Steady state milestones the drilling and subsea const
Slide 8: Sangomar – robust economics at low oil prices
Sangomar – robust economics at low oil prices The Sangomar Oil Field will have a Brent oil price break-even of ~US$30/bbl (life of field) and ~US$22/bbl (from first oil) Indicative net-back price from first oil US$/bbl (3) Development Peak Peak production production 13,670 13,670 bpd bpd (net) (net)
Slide 9: Sangomar – attractive economics for shareholders
Sangomar – attractive economics for shareholders FAR believes that the development and de-risking of the Sangomar Oil Field is likely to generate significant shareholder value (an illustrative NPV10 equity uplift is shown below) FAR Current Mkt Cap Sangomar (Phase 1 + 2) Growth potential Post ramp-u
Slide 10: Financing summary
Financing summary • FAR has A$168 million of cash on its balance sheet, is in the final stages of closing its senior reserves based lending facility and is progressing with finalising a junior debt facility • Debt and equity arrangements are progressing as planned and final documentation expected to
Slide 11: Sangomar – upside from improved recovery factors
Sangomar – upside from improved recovery factors Should the Sangomar Oil Field’s recovery factor emulate the West African average, the increase in reserves over the field life should be material Recovery Factors at Analogue West Africa Fields 60% 50% 48% 47% 47% 43% 40% 40% (Recovery Factor) Average
Slide 12: Material upside potential in Senegal
Material upside potential in Senegal The joint venture will be undertaking appraisal drilling on the FAN or SNE North discoveries in 2021 The Sangomar Field Development provides FAR with numerous and material value upside opportunities beyond the current planned phases of development, including our
Slide 13: FAR’s exploration success one of the best
FAR’s exploration success one of the best • FAR remains one of the most successful exploration companies in the market today. • FAR has achieved 100% success rate with the drill bit offshore Senegal, drilling 11 successful wells, including 4 independent discoveries. 12
Slide 14: Highly prospective exploration portfolio in The Gambia
Highly prospective exploration portfolio in The Gambia Adjacent to the Sangomar Oil Field, drilling planned late 2020 ‒ The target reservoirs of Soloo and Bambo were hydrocarbon bearing in the Sangomar wells ‒ The Soloo prospect, the extension of the Sangomar Field into The Gambia, has resource pote
Slide 15: Exploration and development timeline
Exploration and development timeline FAR will continue an active exploration program during the Sangomar Oil Field Development, targeting additional production and resource opportunities within tieback range to proposed infrastructure The Gambia and Guinea-Bissau complement the growth trajectory 202
Slide 16: Sangomar joint venture summary
Sangomar joint venture summary Beneficial Interest Today Interest Post PETROSEN Accretion 1 FAR FAR 15% 13.7% Cairn Energy Cairn Energy 40% 36.4% Petrosen Petrosen 10% 18.0% Woodside Woodside 35% - Operator 31.9% - Operator 1. PETROSEN will advise the JV of their election to accrete at the end of Ju
Slide 17: Environment, social & governance
Environment, social & governance Over 25% of project incomes are recovered by Senegal in the form of government take and taxes1 Thousands of jobs will be created for the people of Senegal directly benefiting the country and its people FAR is a strong advocate and supporter of ESG initiatives and div
Slide 18: Environment: Clean sulphur emissions
Environment: Clean sulphur emissions The Sangomar field is in the first quartile of quality and low sulphur content and accordingly will be one of the cleanest crude streams in the world when in production. • The use of current high-sulphur residual fuel is negative for the environment, leading to l
Slide 19: FAR remains positive on oil markets
FAR remains positive on oil markets FAR, as a successful oil explorer, is well positioned to capitalize on the industry’s under investment in oil new resources and build a strong business for the future. • Despite recent weakness in oil prices from the coronavirus outbreak, we continue to believe th
Slide 20: Value proposition is compelling
Value proposition is compelling EV/2P+2C resource multiples (US$/boe) (1),(2) World class asset with direct exposure to v WPL operated asset 8.0 7.0 v Strong growth outlook 5.8 Median: US$5.0/boe (4) 4.3 v Highly attractive project economics 3.4 2.3 v Significant exploration upside 1.6 v Experienced
Slide 21: Experienced board
Experienced board FAR has a board with extensive experience in oil and gas and the development of large scale projects in emerging markets such as Senegal A professional geophysicist and also has extensive experience as a stockbroker and merchant Nic Limb banker. Nic was formerly executive chairman
Slide 22: Senior management and technical team
Senior management and technical team FAR has established a highly competent technical team for the Sangomar Field Development project, having originally identified the Sangomar prospect and now resourced to assist with development and financing of the project A professional geophysicist with 30 year
Slide 23: Senegalese dignitaries visit to FAR HQ and FID signing
Senegalese dignitaries visit to FAR HQ and FID signing 22
Slide 24: Disclaimer
Disclaimer • This presentation has been prepared by FAR Limited (‘FAR’). It should not be Prospective and Contingent Resources and Reserves considered as an offer or invitation to subscribe for or purchase any shares in FAR • All Contingent and Prospective Resource estimates presented in this report
Slide 25: 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