Slide 1: A world class oil story - Investor Update
A world class oil story For personal use only Investor Update 30 March 2017
Slide 2: About FAR
About FAR • NW Africa focussed oil exploration company For personal use only • Seventh largest E&P listed on the ASX: Market cap $365M* • SNE Field offshore Senegal World’s largest oil discovery for 2014 • SNE field 2C contingent recoverable oil resource 641 mmbbls (96 mmbbls net to FAR)* • 21 month
Slide 3: FAR in Senegal
FAR in Senegal • FAR has been in Senegal since 2006 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: FAN-1 and SNE-1 opened up Senegal
FAN-1 and SNE-1 opened up Senegal • 100% drilling success to date For personal use only • Cairn Energy (operator) NPV of US$12.5/bbl at project FID (2018/19) and US$70/bbl oil price* • Major gas discoveries made in 2015/16 offshore Northern Senegal / Southern Mauritania • BP farm-in to Kosmos acreag
Slide 5: SNE Field geological setting and discovery well
SNE Field geological setting and discovery well SNE-1 oil discovery (Nov 2014) For personal use only ➢ Oil gravity 32 degrees API ➢ Gross oil column 96m * •➢ Gross FAR gross contingent oil-bearing resource interval of > 500m P90 (1C): 348 • No water-bearing mmbbls, sands intersected P50 (2C): 641 mm
Slide 6: SNE appraisal program
SNE appraisal program Six appraisal wells drilled to date For personal use only Currently completing VR-1 and then drill SNE-6 pulsing well Objectives of the appraisal program: • Size of oil pool • Measure deliverability from logging, coring and flow testing • Measure field connectivity SNE-4 SNE-3
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 Main reservoirs flowed at commercially viable rates For personal use only SNE-2 lower and upper reservoirs units • Gross 12m lower sands: 8,000 bopd through 3/4“ choke (stabilised constrained flow) • Gross 15m upper sands: 1,000 bopd through SNE-2 flow test 3/8“ choke
Slide 9: VR-1 well
VR-1 well • Drilling commenced after For personal use only completion of SNE-5 • VR-1 to be logged but no DST • VR-1 well objectives: – Appraise the upper and lower sands in the west of the field – Confirmed 97m gross oil column – Greater than expected thickness of lower reservoirs – Best reservoir
Slide 10: SNE-6 well
SNE-6 well • Plan to drill following VR-1 well For personal use only • SNE-6 used as a pulse well for the interference test (SNE-3 and SNE-5 listening wells) • Final location for SNE-6 to be decided after results of SNE-5 are understood • Objectives of the wells: – Confirm connectivity of the upper
Slide 11: Efficient drilling, costs coming down
Efficient drilling, costs coming down For personal use only • Currently using the Stena DrillMAX – a 6th generation, dual mast, dual BOP drill ship • SNE-5 well drilled 21 days ahead of plan • VR-1 well currently 4 days ahead of plan • Expect similar performance on VR-1 and SNE-6 wells • Incremental
Slide 12: Large potential upside in the RSSD acreage
Large potential upside in the RSSD acreage For personal use only • 500m of oil intersected in the FAN-1 well – prolific, oil source rock • New 2015 3D seismic shot along shelf edge trend from SNE • Extensive portfolio of exploration prospects with >1bn bbls potential* updated Feb 2017 *Reference FAR
Slide 13: Upper sands important for undrilled prospects
Upper sands important for undrilled prospects • SNE-5 well tested 2 upper sands units (S480 and For personal use only S460 reservoirs) • S460 was previously untested upper sand unit SNE Field at S460 reservoir level and showed good reservoir properties and showing Sirius and deliverability Spica Pro
Slide 14: SNE development and tie back concept
SNE development and tie back concept • Standalone FPSO: planned expansion For personal use only capability for tie-backs • CAPEX: US$12- US$15/bbl* • OPEX: < US$10/bbl* • Breakeven oil price: US$35/bbl* • NPV/bbl : US$12.50/bbl* (at FID, Image being updated US$70/bbl oil price, 2C 473mmbbls) • FAR P
Slide 15: The Gambia licence acquisitions
The Gambia licence acquisitions • Farm-in to 80% working interest with For personal use only operator rights • Erin Energy 20% partner • FAR payment of US$5.18M to Erin, due on Government approval • Well at end 2018 • Large equity position gives FAR options to farm down • Support letter from Ministr
Slide 16: 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 17: Extension of the SNE shelf edge trend
Extension of the SNE shelf edge trend • On trend with SNE – same play type For personal use only • Access to same source kitchen • Highly prospective • High chance of success 17
Slide 18: Extension of the SNE shelf edge trend
Extension of the SNE shelf edge trend • On trend with SNE – same play type For personal use only • Access to same source kitchen Spica • Highly prospective • High chance of success • Sama prospect reservoirs penetrated by 7 wells in SNE program 18
Slide 19: 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 19
Slide 20: Next months in Senegal
Next 12 months in Senegal • Deepen VR-1 appraisal into exploration target For personal use only • Conduct interference test by pulsing from SNE-6 • SNE-6 expected to be completed by mid year • JV to agree possible exploration well to drill in current campaign • Upgrade in contingent resource estimat
Slide 21: 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 22: 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