Slide 1: FAR builds on solid foundations
FAR builds on solid foundations Annual General Meeting 30 May 2018
Slide 2: FAR team
“SO FARLimited
Slide 3: Our company in 2017
Our company in 2017 End of year cash position Samo ee prospect rs49 e 9 WE Farmed into blocks 8 2 5 with no debt A2 & A5 The Gambi mmbbIs March 2017 > Ake Awarded African breakthrough company of the year y es: (© FAR Ura acreage «© bjiiere Permit~Senegal deepwater 0, wells drilled with 100% A, succe
Slide 4: 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 5: Building on solid foundations
Building on solid foundations • Partner in the world’s largest oil discovery for 2014, offshore Senegal, W Africa • Secured prized blocks offshore, The Gambia • Drilling first exploration well in The Gambia since 1979 • No dry wells drilled in 11 straight wells offshore Senegal • Well positioned for
Slide 6: 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 7: 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 8: 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 9: 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 10: 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 11: 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 11
Slide 12: Senegal development video
Senegal development video 12
Slide 13: 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 14: Annual demand for floating drill rigs
Annual demand for floating drill rigs 14 Source: McKinsey Energy Insights, March 2018
Slide 15: Oil market outlook
Oil market outlook In percent Source: WoodMackenzie 15 Source: McKinsey Energy Insights, March 2018
Slide 16: 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 17: 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 17
Slide 18: 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 19: The Gambia farmout to PETRONAS
The Gambia farmout to PETRONAS • FAR farmed out 40% interest in the A2 and BLOCK A2 & A5 A5 permits to PETRONAS in February 2018 FAR 80% interest and Operator Erin Energy 20% partner – FAR retains 40% equity* – PETRONAS to pay 80% of well costs to a cap of US$45M – FAR to remain Operator of the Join
Slide 20: Samo Prospect: Block A2, The Gambia
Samo Prospect: Block A2, The Gambia 20
Slide 21: Regional schematic cross-section
Regional schematic cross-section • Samo prospect defined on 3D seismic • Access to same, prolific source kitchen as SNE and is in same geological play • Same upper/400 series reservoirs as SNE • Thickening of 400 series sands to the south • Samo reservoirs have been drilled by 9 wells in Senegal dri
Slide 22: Drill readiness
Drill readiness peewee y nage Driliviax 4 [ \@ 40% 2017 drilling rates = Driltrig warm ee ee FARfully as Salma funded 2 July 2018 for well Final Estimated cost well : Voted one of the top 40 location conventional wells to US$ M y look out for in 2018 22
Slide 23: Drill readiness
Drill readiness • Scheduled to spud well in Q4 with results by year end • EIA approval received in February – stakeholder engagement ongoing • LTI free (324 days) • No environmental incidents • Operator organisation and local office established • Shore base contracts awarded • Final well location by
Slide 24: Guinea-Bissau
Guinea-Bissau
Slide 25: Guinea-Bissau
Guinea-Bissau • Currently evaluating SNE look-a- SINAPA (BLOCK 2) & ESPERANÇA (BLOCKS 4A & 5A) 21.42% paying interest, 21.42% beneficial interest like prospect on shelf edge Operator: Svenska Petroleum Exploration AB • Atum has best estimate 471mmbbls oil* • Commenced farmout with partner Svenska •
Slide 26: Kenya
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Slide 27: Kenya
Kenya BLOCK L6 • L6 exploration permit in the 60% interest Lamu Basin Operator: FAR Limited • Lamu Basin has proven oil at both ends of Miocene reef play • Permit currently in suspension due to on ground strife preventing ground access 27
Slide 28: Australia
Australia *Reference FAR 2017 Annual Report to Shareholders, best estimate, gross, unrisked prospective resources, 100% basis, oil only
Slide 29: Australia
Australia • WA-458-P exploration permit WA-458-P OFFSHORE DAMPIER BASIN offshore WA is surrounded by 100% paying and beneficial interest Operator: FAR Ltd discoveries • Mapped leads at proven reservoir levels • Combined unrisked prospective resources for WA-458-P estimated to be 359mmbbls* • 3D seis
Slide 30: 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 31: 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 32: 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 33: 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