Far Ltd · ASX:FAR
Far — RIU Good Oil Conference 2017
33 slides from Far's conference presentation, Sep 14, 2017
Slide 1: The Emergence of a Major New Hydrocarbon Province
Senegal For personal use only The Emergence of a Major New Hydrocarbon Province RIU Good Oil Conference 2017
Slide 2: Back in 2012
Back in 2012 For personal use only Are there elephants lurking under the deep waters of Senegal? No Deepwater wells ever drilled 2
Slide 3: FAR snapshot
FAR snapshot • Fifth largest E&P company listed on the ASX For personal use only • Basin opening FAN-1 and SNE-1 oil discoveries offshore Senegal in late 2014 • First deepwater wells to be drilled offshore Senegal • SNE ranked as world’s largest oil discovery in 2014 by IHS • 21 months from discover
Slide 4: FAR – Australian based, Africa focused
FAR – Australian based, Africa focused For personal use only 4
Slide 5: History of FAR in Senegal
History of FAR in Senegal For personal use only • FAR farmed in for 30% equity in Hunt Late Cretaceous upper slope operated PSC in mid 2006 stacked fans • Area under licence ~15,000km2 Early Cretaceous carbonate shelf • Unproven, deepwater play concepts with large potential • 2000 sq km 3D seismic D
Slide 6: Drilling Activity: Regional Context 2012
Drilling Activity: Regional Context 2012 For personal use only Senegal Guinea Bissau Guinea Kora-1 Ghana Fields Sierra Leone Jubilee, Tweneboa Montserrado-1 Teak, Tano, Cote d’Ivoire Fields Enynera Gazelle, Eland, Kudu Liberia Bellier, Ibex, Espoir Sabu-1 Venus-1 Panthere Narina-1 Mercury-1 Jupiter-
Slide 7: History of FAR in Senegal
History of FAR in Senegal For personal use only • Early 2012, FAR rebranded, acquires new management and technical team • New ideas and play concepts developed including deeper basinal targets • Lupalupa prospect developed in Albian above the Aptian carbonates 7
Slide 8: Lupalupa Prospect: TWT
Lupalupa Prospect: TWT Lupalupa For personal use only Shallow channelling disguised the Lupalupa (SNE) structure in two way time 8
Slide 9: Lupalupa Prospect: PSDM
Lupalupa Prospect: PSDM Lupalupa For personal use only Structure is evident on later processing (prestack depth migration). Amplitude conformance to structure. 9
Slide 10: FAR in Senegal
FAR in Senegal For personal use only OFFSHORE SENEGAL PSC FAR 16.7% paying interest, 15% beneficial interest Operator: Cairn Energy PLC Hunt Oil FAR Cairn Operator Operator Operator 10
Slide 11: FAN-1 Drilling 2014
FAN-1 Drilling 2014 For personal use only FAN-1 Time v’s Depth Curve 11
Slide 12: SNE North-1 Operations: 2017
SNE North-1 Operations: 2017 For personal use only • The difference a state of the art rig and local knowledge can make. • Spudded 17th July 2017 in 877m water • Reached 2837mDRT T.D. 26th July 2017 • 9 days from spud to TD • Well completed in 26 days at USD $21.0m including extra wireline logging t
Slide 13: FAN-1 discovery well
FAN-1 discovery well For personal use only FAN-1 oil discovery (Oct 2014) • Oil gravity 28-41 degrees API • Gross oil bearing interval >500m • Operator gross oil (STOIIP) in place* P90:250 mmbbls, P50: 950 mmbbls, P10: 2,500 mmbbls • Proved prolific source and de-risked future shelf drilling Shelf E
Slide 14: 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 15: 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 16: Perth
For personal use only Perth 16
Slide 17: SNE Appraisal results
SNE Appraisal results • All appraisal wells proved approximately 100m gross oil For personal use only column • MEFS passed: 2C resource 641 mmbbls • Appraisal drilling completed • SNE-5 & SNE-6 tested upper sands units (S480 and S460 reservoirs). Confirmed good reservoir properties. • Lower reservoi
Slide 18: 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) • Strong flow rates and successful interference test proves deliverability and con
Slide 19: Interference Testing
Interference Testing SNE-6 SNE-5 For personal use only S480 • Successful interference test supports higher recovery factors for the field. This will be incorporated in future resource updates 19
Slide 20: Looking forward to development of SNE
Looking forward to development of SNE For personal use only • SNE is expected to be a staged development using a standalone FPSO, with expansion capability for satellite tie- backs Operator Numbers • First oil anticipated in 2021-2023, with plateau gross production of 75-125kbopd* • Development expe
Slide 21: Regional oil and gas discoveries (2013)
Regional oil and gas discoveries (2013) For personal use only 2013 – No deep water drilling offshore Senegal 21
Slide 22: Regional oil and gas discoveries (2017)
Regional oil and gas discoveries (2017) For personal use only The basin opening FAN-1 and SNE-1 oil discoveries have made Senegal one of the world’s most attractive locations for exploration. Major gas discoveries have also recently been made north of FAR in Senegal and Mauritanian waters. So far, n
Slide 23: 2017 Exploration Drilling
2017 Exploration Drilling VR-1 drilled as appraisal well with a deeper exploration For personal use only objective in Aptian carbonates. • Oil shows but reservoir poorly developed FAN South-1 drilled as second exploration well in the basin. • Recovered 31 degree API oil from Early Cretaceous reservo
Slide 24: Sangomar Profond Block: Spica Prospect
Sangomar Profond Block: Spica Prospect Single continuous oil and gas column Multiple oil and gas columns For personal use only SNE SNE North Spica Prospect SNE North-1 24
Slide 25: Growing FAR’s portfolio: The Gambia
Growing FAR’s portfolio: The Gambia For personal use only • Area identified by FAR as part of regional THE GAMBIA studies in 2013 & 2014 Farm-in to 80% interest with operator rights Erin Energy 20% partner • Extended negotiations continued through 2016 • Purchased Polarcus 3D in October 2016. Confir
Slide 26: Extension of the SNE shelf edge trend
Extension of the SNE shelf edge trend • On trend and adjacent to SNE field – same play type For personal use only • Sama prospect defined on 3D seismic: – Access to same, prolific source kitchen as SNE – Same upper/400 series reservoirs as SNE – Thickening of 400 series sands to the south • Highly p
Slide 27: Blocks A2 and A5 prospectivity
Blocks A2 and A5 prospectivity For personal use only • 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, recoverable, best estimate of prospective resources, oi
Slide 28: Strategic Alliance
Strategic Alliance 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 a
Slide 29: 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 30: Moving forward in 2017
Moving forward in 2017 For personal use only • 2013: Year of farmout • 2014: Year of discovery • 2015-2017: Appraisal of the SNE Field • 2017-2018: Development planning and studies • 2018-2021: Engineering, financing & construction • 2021-23: First oil from Phase 1 SNE development • 100% success rat
Slide 31: Conclusion
Conclusion For personal use only The elephant is emerging… 31
Slide 32: 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 33: 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