Far Ltd · ASX:FAR
Far — Credit Suisse 5th Annual Australian Energy Conference 2018
23 slides from Far's conference presentation, Jun 14, 2018
Slide 1: FAR builds on solid foundations
FAR builds on solid foundations Credit Suisse: 5th Annual Australian Energy Conference 13/14 June 2018
Slide 2: Our company in 2017
Our company in 2017 End of year cash position Samo EE prospect ns49 e 9 Wi Farmed into blocks 8 2 5 with no debt A2 & A5 The Gambia mmbbls ike Awarded African breakthrough company of the year y deepwater 0, wells drilled with 100% success rate Completed appraisal of SNE Field Signed Area of Mutual w
Slide 3: FAR relative performance
FAR relative performance FAR has largely performed in line with the oil price and the ASX200 Energy index Brent oil: US$73.3 +29% $0.10 ASX-200 Energy: 11,179 +24% FAR: 9.0cps +20% $0.09 Share price (A$p.s.) $0.08 $0.07 $0.06 $0.05 Jan-17 Apr-17 Jul-17 Oct-17 Jan-18 Apr-18 FAR S&P ASX-200 Energy Ind
Slide 4: FAR in the MSGBC Basin
FAR in the MSGBC Basin • The Mauritania-Senegal-Guinea-Bissau- FAR LICENCES OFFSHORE SENEGAL, Conakry Basin has emerged as a global THE GAMBIA & GUINEA-BISSAU hotspot for oil and gas exploration • FAR is one of the largest acreage holders in the MSGBC Basin • FAR in Senegal since 2006, Guinea-Bissau
Slide 5: FAN-1 and SNE-1 opened up Senegal
FAN-1 and SNE-1 opened up Senegal Industry hotspot – increased investment and activity • FAN and SNE discoveries 2014 • FAN South and SNE North discoveries 2017 • 100% drilling success (11 wells) to date in FAR’s Senegal acreage • Major gas discoveries made in 2015, 2016, 2017 by Kosmos and partners
Slide 6: FAR in Senegal
FAR in Senegal • FAR introduced Cairn Energy and ConocoPhillips to the joint venture in 2012 • SNE Field discovered in November 2014 • SNE-1 was the first oil exploration well drilled offshore Senegal in 40 years • JV now invested ~ US$930M in four years • 11th successful oil well drilled in 2017 •
Slide 7: Senegal project 2017
Senegal project 2017 Final 3 appraisal | 2 additional wells for SNE | discoveries wells » & & ’ ’ B sites Boe dt A A SNE-5 VR-1 SNE-6 | SNENorth-1 FAN South-1 for the = price of ‘ a All wells drilled safely & efficiently Proved size, deliverability & connectivity of SNE reservoirs non |. productive
Slide 8: SNE appraisal program
SNE appraisal program • Seven appraisal wells drilled to complete evaluation of the SNE Field • Objectives of the appraisal program: Size, deliverability and connectivity of reservoirs • All appraisal wells proved 97m gross oil column • Deliverability of reservoirs understood – world class flow rate
Slide 9: Senegal in 2018
Senegal in 2018 FID SNE mid 2019 Evaluation report Mid year submisson SNE Exploitation plan a 2021-2023 Government approval expected year end y
Slide 10: SNE development and tie back concept
SNE development and tie back concept • Full field, phased development • Standalone FPSO: planned expansion capability for tie-backs • Estimated costs (life of field)* – CAPEX: ~US$12/bbl – OPEX: ~US$7/bbl – FPSO lease costs: US$3-7/bbl • Breakeven oil price: US$35/bbl* • Unlevered IRR at US$60/bbl:
Slide 11: Annual demand for floating drill rigs
Annual demand for floating drill rigs 11 Source: McKinsey Energy Insights, March 2018
Slide 12: Oil market outlook
Oil market outlook In percent Source: WoodMackenzie 12 Source: McKinsey Energy Insights, March 2018
Slide 13: Arbitration update
Arbitration update Claimant : FAR Limited Respondent: ConocoPhillips Senegal BV* President of the arbitral tribunal appointed by the ICC International Court of Arbitration (13 April) Time limit for establishing the Terms of Reference set by President of the ICA as 29 June (25 May) *ConocoPhillips Se
Slide 14: FAR in The Gambia
FAR in The Gambia blocks cover me 2,700 km March 2018 Farmout for well carry April 2017 plus cash Farmin for Major oil company FAR retaining as 40% partner 40% carried (0) . 80 % PETRONAS Unsere equity & / +operatorship 14
Slide 15: Prospectivity of the A2/A5 blocks
Prospectivity of the A2/A5 blocks • Blocks A2 and A5 highly prospective following the discovery of SNE field • RISC Audit of blocks A2/A5 prospectivity released 21 November 2017 • Samo Prospect Prospective Resources* Samo Prospect mmbbls oil Low estimate (P90) 335 Best estimate (P50) 825 High estima
Slide 16: Samo Prospect: Block A2, The Gambia
Samo Prospect: Block A2, The Gambia 16
Slide 17: Regional schematic cross-section
Regional schematic cross-section • Samo prospect defined on 3D seismic • Access to same, prolific source kitchen as SNE and is in same geological play • Same upper/400 series reservoirs as SNE • Thickening of 400 series sands to the south • Samo reservoirs have been drilled by 9 wells in Senegal dri
Slide 18: Drill readiness
Drill readiness peewee y nage Driliviax 4 [ \@ 40% 2017 drilling rates = Driltrig warm ee ee FARfully as Salma funded 2 July 2018 for well Final Estimated cost well : Voted one of the top 40 location conventional wells to US$ M y look out for in 2018 18
Slide 19: Community & social programs
Community & social programs Donation of 100 bins to Serrakunda markets Tallinding school rehabilitation project Donation of soccer balls and uniforms to local community
Slide 20: Another big year ahead
Another big year ahead • Value drivers for the year ahead are large and converging on the second half of 2018 • Final JV agreed resources and economics for the SNE Field development • Submission and approval of the SNE Field Exploitation plan • Drilling of the Samo-1 well offshore Gambia • Finalise
Slide 21: 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 22: 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
Slide 23: Board with significant experience
Board with significant experience 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 industry experience in the
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