Slide 1: A world class oil story: Senegal project update
A world class oil story For personal use only Senegal project update 08 March 2017
Slide 2: About FAR
About FAR • NW Africa focussed oil exploration company For personal use only • Sixth largest E&P company listed on the ASX: Market cap $360M* • 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
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: FAN-1 and SNE-1 opened up Senegal
FAN-1 and SNE-1 opened up Senegal • Basin opening FAN-1 and SNE-1 oil For personal use only discoveries 2014 • 5 successful SNE appraisal wells drilled to date • 100% drilling success to date • Cairn Energy (operator) NPV of US$12.5/bbl at project FID (2018/19) and US$70/bbl oil price* • Major gas d
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 Field appraisal program
SNE Field appraisal program For personal use only • Four appraisal wells drilled in the 2015/16 campaign (SNE-2, SNE-3, BEL- 1, SNE-4) BEL-1 SNE-2 SNE-1 SNE-3 SNE-5 SNE-4 • Three wells planned for 2017 campaign (SNE-5, VR-1, SNE-6) • Currently mobilizing rig to VR-1 location • Objectives of the appr
Slide 7: Appraisal results to date
Appraisal results to date For personal use only • Drilling programs have been completed safely, efficiently and under budget • Summary of appraisal accomplishments: • ~100m gross oil column across field • High quality 32⁰ API oil • Correlation of reservoir units • Static geological model confirmed •
Slide 8: 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 9: 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 lower sands: 8,000 bopd through 3/4“ choke (stabilised constrained flow) SNE-2 flow test • Gross 15m upper sands: 1,000 bopd through 3/8“ choke
Slide 10: VR-1 well
VR-1 well For personal use only • Drilling to commence on completion of operations at SNE-5 • VR-1 to be logged but no DST • VR-1 well has two objectives: – Appraise the upper and lower sands in the west of the field – Seismic reprocessing indicates potential for increased thickness of oil-bearing l
Slide 11: SNE-6 well
SNE-6 well For personal use only • Plan to drill following VR-1 well • SNE-6 to be flow tested and used as a pulse well for the interference test across the field (SNE-3 and SNE-5 to be used as listening wells) • Final location for SNE-6 to be decided after full results of SNE-5 are understood • Obj
Slide 12: 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 • Expect similar performance on VR-1 and SNE-6 wells • Incremental cost to FAR of adding VR-1 well to the pro
Slide 13: 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 14: Upper sands important for undrilled prospects
Upper sands important for undrilled prospects For personal use only • SNE-5 well tested 2 upper sands units (S480 and S460 reservoirs) SNE Field at S460 reservoir level • S460 was previously an untested upper sand unit and showing Sirius and Spica Prospects showed good reservoir properties and deliv
Slide 15: 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 16: FAR resource value creation
FAR resource value creation Number of barrels of oil attributable to FAR per share has grown For personal use only Thousand barrels/share FAR has grown its SNE net 2C contingent resource per share by 2.5x from its pre-drill P50 prospective resource estimate adjusted for capital expansion over the pe
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: Next months in Senegal
Next 12 months in Senegal • Finalise results from SNE-5 For personal use only • Drilling VR-1 appraisal and exploration well • Conduct interference test by pulsing from SNE-6 • Drilling VR-1 followed by SNE-6 expected to be completed by mid year • JV to agree possible exploration well to drill in cu
Slide 19: 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 20: 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