Far Ltd · ASX:FAR
Far — Shareholder Meeting (May 2017)
37 slides from Far's shareholder meeting presentation, May 29, 2017
Slide 1: Annual General Meeting
Annual General Meeting For personal use only ASX:FAR 29 May 2017
Slide 2: Board and management
Board and management For personal use only Experienced Board and management with strong relationships in Africa
Slide 3: Board with significant experience
Board with significant experience For personal use only 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 indu
Slide 4: Senior management
Senior management For personal use only Catherine Norman Over 20 years experience in the mineral and oil & gas exploration industry, having held executive positions Managing Director both in Australia and in the UK. Cath has carried out operating assignments in Europe, Africa, the Middle East and Au
Slide 5: Our Company
Our Company • Fifth largest E&P on the ASX: Market cap For personal use only A$442M1 • Strategic focus Mauritania-Senegal-Guinea- Bissau (MSGB) Basin • 8 exploration permits in MSGB Basin • Basin opening discoveries in Senegal in 2014 • Progressing towards first oil from SNE Field 2021 • Strong bala
Slide 6: Community & social programs
Community & social programs Investing in education & training, enterprise & Renovated a primary school For personal use only community development programs in the regional city of Thiess through our Senegal joint venture Sponsored regional soccer competitions through provision of 200 balls and unifo
Slide 7: FAR shareholder summary
FAR shareholder summary Top 200 shareholders by type For personal use only Shareholder base* Institutions 46% • Top 200 shareholders own 70% of FAR Family Office 13% • FAR’s shareholders are Private 31% predominantly located in Australia Other 10% • 3 substantial shareholders: – Meridian Asset Manag
Slide 8: 2016 Achievements
2016 Achievements • 4 successful SNE appraisal wells in 2016 prove SNE For personal use only field capable of delivering commercial oil flow rates • Increased the SNE contingent recoverable resource base from a 2C of 330mmbbls* to a 2C of 641mmbls* • Passed MEFS (Minimum Economic Field Size) for SNE
Slide 9: FAR relative performance
FAR relative performance • Oil price rise and stabilisation is good for the ASX 200 (producers) • FAR still greatly viewed as explorer Relative performance – Last twelve months For personal use only $0.11 • COP sale price at US$2.20/bbl reflecting low oil price environment of July 2016 ASX-200 $0.10
Slide 10: FAR relative performance since 1-Jan-17
FAR relative performance • Better performance for 2017 so far • Risk being removed from SNE development Relative performance – since 1-Jan-17 • FAR funded to FID For personal use only $0.10 • Market sentiment more positive on the whole – balance sheets adjusted for “lower for longer” oil price $0.09
Slide 11: Our industry leading into 2017
Our industry leading into 2017 • By mid 2016, an estimated 360,000 workers were shed For personal use only by E&P companies world wide • By mid 2016, 160,000 (42.5%) of workers in oilfield services had lost their jobs • Companies have been preparing for a “Lower for longer” oil price • EIA Short ter
Slide 12: Our strategy
Our strategy • Focus on MSGB Basin and in particular the extension For personal use only of the Shelf Edge play to the south • Lever local and specific technical knowledge into high value exploration opportunities with large equity positions • Bring FAR local and specific technical knowledge to our
Slide 13: 2017 Strategy at work
2017 Strategy at work • Negotiated farm-in to blocks A2/A5 The Gambia: For personal use only continuation of SNE Field shelf edge structure • Executed AMI (Area of Mutual Interest) Agreement with CNOOK UK • Upgraded undrilled prospective resources : >1bbbls • Successfully raised $80M to leave FAR fu
Slide 14: World class acreage in MSGB Basin
World class acreage in MSGB Basin • 10 exploration licenses globally, 4 operated by FAR For personal use only • 8 licences in the MSGB Basin • 2 successful discoveries offshore Senegal and further exploration drilling planned on MSGB licences in next 3 years Senegal Kenya SNE Field and FAN-1 Frontie
Slide 15: FAR in Senegal
FAR in Senegal For personal use only • FAR in Senegal since 2006 FAR LICENCES OFFSHORE SENEGAL, THE GAMBIA & GUINEA-BISSAU • Basin opening FAN-1 and SNE-1 oil discoveries, 2014 • SNE ranked as worlds largest oil discovery in 2014 • JV invested ~ US$800M in three years • 9 deep water exploration/appr
Slide 16: No production or activity offshore Senegal
No production or activity offshore Senegal For personal use only Status in mid-2014 • No offshore production • No oil exploration drilling offshore Senegal for 40 years • No deep water drilling ever offshore Senegal • FAR 90% of RSSD acreage before Cairn and COP farm down 16
Slide 17: FAN-1 and SNE-1 opened up Senegal
FAN-1 and SNE-1 opened up Senegal For personal use only Current state of discoveries • 7 successful SNE appraisal wells drilled over 2015/16/17 • 100% drilling success to date • Major gas discoveries made in 2015, 2016, 2017 • BP farm-in to Kosmos acreage introduces a large IOC to the basin • CNOOC
Slide 18: SNE Field geological setting and discovery well
SNE Field geological setting and discovery well For personal use only SNE-1 oil discovery (Nov 2014) • Oil gravity 32 degrees API • Gross oil column 96m • FAR gross contingent resource* P90 (1C): 348 mmbbls, P50 (2C): 641 mmbbls, P10 (3C): 1,128 mmbbls • Excellent reservoir rocks in 2 main families:
Slide 19: SNE Field evaluation program
SNE Field evaluation program For personal use only • Commenced appraisal drilling in Nov 2015 • Seven successful appraisal wells now drilled • Pre-development appraisal completed • Objectives of the appraisal program: – Size of oil pool – 641mmbbls 2C recoverable oil*. Exceeded minimum economic fiel
Slide 20: Size of the SNE oil field
Size of the SNE oil field For personal use only Pre-Drill Post discovery RISC audited Latest RISC audited (Oct 2014) (Nov 2014) (April 2016) (August 2016) P90 : 50mmbbls 1C: 150 mmbbls 1C: 277 mmbbls 1C: 348 mmbbls P50 : 154 mmbbls 2C: 330 mmbbls 2C: 561 mmbbls 2C: 641 mmbbls P10 : 350 mmbbls 3C: 67
Slide 21: Deliverability and connectivity of reservoirs
Deliverability and connectivity of reservoirs • DST’s conducted on SNE-2, SNE-3, SNE-5, SNE-6 For personal use only • Pressure gauges installed in SNE-3 and SNE-5 • Lower reservoirs flowed at world class rates (SNE-2) • Deliverability and connectivity of upper reservoirs completed in May 2017 SNE-5
Slide 22: SNE Appraisal results summary
SNE Appraisal results summary For personal use only • All appraisal wells proved 97m gross oil column SNE Field at S460 • MEFS of 200mmbbls passed reservoir level showing Sirius and • 2C resource 641mmbbls* and scope to increase Spica Prospects • Deliverability of reservoirs understood – world class
Slide 23: Efficient drilling, lower costs
Efficient drilling, lower costs For personal use only • Currently using the Stena DrillMAX – a 6th generation, dual mast, dual BOP drill ship • 2017 drilling program significantly ahead of planned AFE • Drilling completed successfully and safely • Daily rig rates reduced by 70% since first drilling
Slide 24: Looking forward to development of SNE
Looking forward to development of SNE For personal use only • Results from interpretation of final appraisal wells expected in Q3 2017 • Development planning underway • Development concept is FPSO (Floating Production, Storage and Offtake vessel) with subsea tie backs • CAPEX: US$12- US$15/bbl* • OP
Slide 25: First pure exploration well planned since 2014
First pure exploration well planned since 2014 For personal use only • FAN South-1 on the South Fan prospect being drilled • South Fan prospect mapped to contain 134 mmbbls oil* • South Fan within tie back range to SNE development • 500m of oil intersected in the FAN-1 well – prolific, oil source ro
Slide 26: The Gambia licence acquisitions
The Gambia licence acquisitions For personal use only • In line with FAR’s strategy to focus on NW THE GAMBIA African shelf following Senegal success Farm-in to 80% interest with operator rights Erin Energy 20% partner • FAR payment of US$5.18M to Erin, due on Government approval • Well at end 2018
Slide 27: Blocks A2 and A5 prospectivity
Blocks A2 and A5 prospectivity For personal use only • 1 billion barrels of oil prospectivity mapped to date* • Sama prospect defined on 3D seismic approximately 500mmbbls recoverable* • 1,504km2 3D seismic data acquired in 2015 • Seismic reprocessing planned before drilling in 2018 *Gross, unrisked
Slide 28: Extension of the SNE shelf edge trend
Extension of the SNE shelf edge trend • On trend with SNE – same play For personal use only • Access to same source kitchen • Highly prospective • High chance of success • Reservoirs now penetrated by 8 wells 28
Slide 29: Extension of the SNE shelf edge trend
Extension of the SNE shelf edge trend For personal use only • 1 billion barrels of oil prospectivity mapped to date* • Sama prospect defined on 3D seismic 500mmbbls recoverable* • Well to be drilled end 2018 • Dry hole well costs US$25-$30M *Gross, unrisked, recoverable, best estimate of prospective
Slide 30: Regional schematic cross-section
Regional schematic cross-section For personal use only • Same upper/400 series reservoirs as SNE • Thickening of 400 series sands to the south 30
Slide 31: AMI with CNOOC
AMI with CNOOC For personal use only • Area of Mutual interest agreement with CNOOC • Covering the designated area offshore Senegal and The Gambia • CNOOC one of the largest independent oil and gas producers in the world • Complementary skills enhance FAR and CNOOC ability to secure additional acrea
Slide 32: Guinea-Bissau update
Guinea-Bissau update For personal use only • Three blocks, operator Svenska SINAPA (BLOCK 2) & ESPERANÇA (BLOCKS 4A & 5A) • New 3D seismic evaluating SNE look-a-like prospect (Atum) • FAR awarded additional equity (21.42%) and improved deep water terms • Licence periods have been extended to 25 Nove
Slide 33: Kenya update
Kenya update For personal use only • Interest in two exploration blocks BLOCK L6 in the Lamu Basin 60% interest offshore 24% interest onshore Operator: FAR Limited • Lamu Basin has proven oil at both ends of Miocene reef play • Farmout for onshore L6 by Milio not completed • Problems continue with a
Slide 34: Australia update
Australia update For personal use only • WA-458-P exploration permit offshore WA-458-P OFFSHORE DAMPIER BASIN Western Australia is surrounded by 100% paying and beneficial interest Operator: FAR Ltd discoveries • Combined unrisked prospective resources for WA-458-P to be 359mmbbls* • 3D seismic surv
Slide 35: FAR moving forward in 2017
FAR moving forward in 2017 • 2013: Year of farmout For personal use only • 2014: Year of discovery • 2015-2017: Appraisal of the SNE Field • 2017-2019: Development planning and studies • 2019-2021: Engineering, financing & construction • 2021: First oil from Phase 1 SNE development • 100% success ra
Slide 36: Contact us
Contact us For personal use only Level 17, 530 Collins Street Melbourne VIC 3000 Australia T: +61 3 9618 2550 info@far.com.au far.com.au Connect with FAR Limited:
Slide 37: 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