Far Ltd · ASX:FAR
Far — Investor Presentation (February 2017)
24 slides from Far's investor presentation, Feb 7, 2017
Slide 1: A world class oil story
A world class oil story For personal use only Investor Update February 2017
Slide 2: About FAR
About FAR For personal use only • NW Africa focussed oil exploration company ASX Ticker FAR • Sixth largest independent exploration & production Share price* A$0.08 company listed on the Australian Securities Exchange Cash* A$47m • SNE ranked world’s No. 1 discovery in 2014 by IHS Issued shares 4.46
Slide 3: FAR in Senegal
FAR in Senegal • FAR has been in Senegal since 2016 For personal use only OFFSHORE SENEGAL PSC FAR 16.7% paying interest, 15% beneficial interest • Senegal is a peaceful democracy with a stable Operator: Cairn Energy PLC outlook (S&P sovereign credit rating B+/B) and projected growth rate of 6% this
Slide 4: World hot spot for oil and gas discoveries
World hot spot for oil and gas discoveries 2013 – No deep water drilling offshore Senegal 2016 – Offshore oil and gas discoveries For personal use only The basin opening FAN-1 and SNE-1 oil discoveries have made Senegal one of the world’s most attractive new areas for oil exploration with a 100% dee
Slide 5: Senegal geology and discovery wells
Senegal geology and discovery wells For personal use only SNE-1 oil discovery (Nov 2014) Oil gravity 32⁰ API Gross oil column 96m FAN-1 oil discovery (Oct 2014) FAR gross contingent • Gross Oil gravity oil-bearing 28-41⁰ API interval of > 500m resource* • No water-bearing Gross oil bearing
Slide 6: SNE 2015/16 appraisal wells
SNE 2015/16 appraisal wells Four appraisal wells drilled in the 2015/16 campaign For personal use only Objective the appraisal program: • Size of oil pool • Test reservoir properties and deliverability from logging, coring and testing • Measure field connectivity (2017 SNE-5 & 6 wells) Currently dri
Slide 7: Size of the SNE oil pool
Size of the SNE oil pool 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: 670
Slide 8: Deliverability of oil from SNE
Deliverability of oil from SNE For personal use only Main reservoirs flowed at commercially viable rates SNE-2 lower and upper reservoirs units • Gross 12m: 8,000 bopd through 3/4“ choke (stabilised constrained flow) SNE-2 flow test • Gross 15m: 1,000 bopd through 3/8“ choke (unstabilised) • Flowed
Slide 9: Appraisal results to date
Appraisal results to date For personal use only • 2015/16 drilling program completed safely, efficiently and under budget • Each well confirmed: • ~100m gross oil column • High quality 32⁰ API oil • Correlation of reservoir units • Footprint: SNE field now 350km2 • Size: Minimum economic field size
Slide 10: 2017 Drilling program
2017 Drilling program For personal use only • Drilling of SNE-5 commenced 21 January • Back to back SNE-5 and SNE-6 field development optimisation wells – SNE-5 to be flow tested and pressure gauges installed – SNE-6 to be flow tested and used as a pulse well for the interference test across the fie
Slide 11: Drill costs coming down
Drill costs coming down Stena Drillmax contracted for the drilling and evaluation of SNE-5 and SNE-6 plus options For personal use only Stena DrillMAX is a state of the art, sixth generation, dual mast, dynamically positioned, deep water drill ship with extensive international and regional West Afri
Slide 12: Status of SNE development planning
Status of SNE development planning For personal use only Development planning underway • Currently in pre- FEED stage (concept select)* • Low cost Classification environment SNE development to benefit from: • Project optimisation • Standardisation Categorisation Source: Society of Petroleum Engineer
Slide 13: SNE development concept
SNE development concept For personal use only • Standalone FPSO: with expansion capability for satellite tie-backs • FAR’s phased development concept has plateau production of 140,000 bopd and first oil in 2022* • Development expenditure: US$13-$15/bbl* • Operating expenditure: US$12-$14/bbl* (inclu
Slide 14: Operator economic development scenario
Operator economic development scenario SNE stand alone development (based on Cairn 2C 473 mmbbls) For personal use only US$12.50/bbl FAR EV / SNE 2C contingent oil resource Source: Cairn Energy estimates (refer Cairn Energy Half Yearly Result 16/08/2016 and Cairn Energy Capital Markets Day presentat
Slide 15: Scratching the surface of the prospectivity
Scratching the surface of the prospectivity For personal use only • 500m of gross oil interval intersected in the FAN-1 well – prolific, oil source rock • Deepwater drilling has a 100% track record. There have been 6/6 successful wells drilled by FAR from 2014 • Extensive portfolio of undrilled expl
Slide 16: Senegal undrilled prospect inventory
Senegal undrilled prospect inventory* Unrisked Best Estimate For personal use only Prospective Low Best High FAR Resources net to Chance of Target Estimate Estimate Estimate Working FAR Discovery Prospect Reservoir (mmbbls) (mmbbls) (mmbbls) Interest (mmbbls) (%) Sirius Albian shelf edge 137 294 458
Slide 17: SNE story so FAR months from discovery to statement of commerciality
SNE story so FAR 21 months from discovery to statement of commerciality For personal use only OCT 2014 NOV 2014 DEC 2014 NOV 2015 JAN 2016 JAN 2016 Spud SNE-1 Discovery Contingent Spud SNE-2 SNE-2 DST Spud SNE-3 at SNE-1 resource World class announced upgrade flow rates 2C 330 mmbbls FEB 2016 MAR 20
Slide 18: What's next in Senegal?
What’s next in Senegal? For personal use only • Drilling and flow test results from the firm SNE-5 and SNE-6 drilling program – Addition to contingent resources – De-risking barrels towards reserves • Progress the SNE development plan for the SNE Field and move from pre-FEED to FEED • Further evalua
Slide 19: Appendices
For personal use only Appendices
Slide 20: Board with significant experience
Board with significant experience For personal use only Nicholas Limb Geophysicist and investment banker Non-Executive Chairman 16 years as MD/Chairman of an ASX listed, international mining company, Australia. Appointed 2012 11 years in Financial services with May and Mellor and HSBC. 39 years indu
Slide 21: FAR research coverage
FAR research coverage For personal use only Peter Arden Tim Hurst-Brown +61 3 9256 8700 +44 20 7866 0092 parden@bellpotter.com.au Tim.hurst.brown@mirabaud.co.uk James Bullen Adam Martin +61 2 9263 2728 +61 3 9256 8904 james.bullen@canaccord.com.au adam.martin@morganstanley.com Sam Webb Adrian Prende
Slide 22: 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 23: 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
Slide 24: Disclaimer
Disclaimer For personal use only • Competent Person Statement Information - The hydrocarbon resource estimates in this presentation have been compiled by Peter Nicholls, the FAR Limited exploration manager. Mr Nicholls has over 30 years of experience in petroleum geophysics and geology and is a memb