Far Ltd · ASX:FAR
Far — Investor Presentation (September 2018)
23 slides from Far's investor presentation, Sep 5, 2018
Slide 1: Building on solid foundations
Building on solid foundations For personal use only Investor Presentation September 2018
Slide 2: Our company
Our company • FAR Limited (FAR:ASX) Market cap A$655M* For personal use only • Strategic focus Mauritania-Senegal-Guinea-Bissau- Conakry (MSGBC) Basin, NW Africa • 8 exploration permits in MSGBC Basin • Significant basin opening discoveries in Senegal in 2014 • 11 wells drilled offshore Senegal – al
Slide 3: FAR relative performance
FAR relative performance Relative performance – since 1-Jul-17 For personal use only $0.14 Brent oil: $0.12 US$77.7 +57% FAR: 11.5cps +53% Share price (A$p.s.) ASX-200 Energy: $0.10 11,938 +37% $0.08 $0.06 Jul-17 Oct-17 Jan-18 Apr-18 Jul-18 FAR S&P ASX-200 Energy Index (rebased) Brent oil (US$/bbl,
Slide 4: The Gambia
The Gambia • Independence: 1965 For personal use only • Young and growing population of 2.2 million • 95% Muslim • Economy dominated by farming, fishing & tourism • > 50% population live below poverty line • Jammeh autocratic regime: 1994-2016 • 2nd December 2016 Election: peaceful regime change to
Slide 5: FAR in The Gambia
For personal use only FAR in The Gambia 5
Slide 6: The Gambia farmout to PETRONAS
The Gambia farmout to PETRONAS For personal use only • FAR Farmed in to blocks A2/A5 in March BLOCK A2 & A5 2017 FAR 40% interest and Operator PETRONAS 40% interest • 80% equity and Operator • FAR farmin valued at US$165K per % point • Farm out to PETRONAS in February 2018 – 40% interest and retain
Slide 7: Prospectivity of the A2 and A5 blocks
Prospectivity of the A2 and A5 blocks • Blocks A2 and A5 highly prospective For personal use only following the discovery of SNE field • Samo and Bambo Prospects mapped and audited by RISC (21 November 2017) • New Soloo prospect identified 2018 • Samo well location finalized with spud date confirmed
Slide 8: Samo Prospect: Block A2, The Gambia
Samo Prospect: Block A2, The Gambia For personal use only 8
Slide 9: Samo Prospect – Extension of the SNE trend
Samo Prospect – Extension of the SNE trend • On trend and adjacent to SNE field – same geological play For personal use only • Samo-1 only 23km from southernmost SNE well (SNE-5) • Samo reservoirs have been drilled by 9 wells in Senegal drilling program at 100% success rate on the structural trend •
Slide 10: Samo Prospect - Geology
Samo Prospect - Geology Seismic depth section through the Samo For personal use only Samo Low Best High prospect showing the reservoir intervals Prospect estimate estimate estimate proven at SNE. Volumes* (P90) (P50) (P10) 335 825 1,713 Samo-1 (working location) *Seismic Data provided courtesy of Po
Slide 11: Soloo Prospect
Soloo Prospect For personal use only Soloo Prospect volumes* Low Best High Recoverable resource (mmbbls) estimate estimate estimate (P90) (P50) (P10) Soloo SNE field extension (S4300) 96 193 327 Shallow Samo target (S4000) 44 142 456 • Two target levels • Currently estimated as being 73% CoS for oil
Slide 12: Soloo well has potential to test Bambo Prospect
Soloo well has potential to test Bambo Prospect • It is possible to test both the Soloo and Bambo For personal use only Prospects with the one well Bambo Prospect* Low Best High • Bambo is an untested play at a shallower level Recoverable resource estimate estimate estimate (mmbbls) but with large p
Slide 13: Samo, Soloo and Bambo prospect summary
Samo, Soloo and Bambo prospect summary Samo For personal use only • Well location finalised • Reservoir presence supported by recent seismic inversion work • Identification of possible DHI (direct hydrocarbon indicator) on 3D seismic • Results of Samo-1 well not likely to influence prospectivity of
Slide 14: Drilling readiness
Drilling readiness For personal use only • October spud with results by year end • EIA approval received in February • Operator organisation and local office established • Shore base contracts awarded • Well location finalised • DWOP & LWOP exercises completed • Rig reactivation has begun
Slide 15: FAR in the MSGBC Basin
FAR in the MSGBC Basin For personal use only • 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 sin
Slide 16: FAN-1 and SNE-1 created this industry hotspot
FAN-1 and SNE-1 created this industry hotspot Industry hotspot – increased investment For personal use only 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,
Slide 17: FAR in Senegal
FAR in Senegal For personal use only • 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 w
Slide 18: Senegal in 2018
For personal use only Senegal in 2018 18
Slide 19: SNE development and tie back concept
SNE development and tie back concept For personal use only • Full field, phased development • Standalone FPSO: planned expansion capability for tie-backs • Estimated phase 1 CAPEX: $3bn • Breakeven oil price: US$35/bbl* • Unlevered IRR at US$60/bbl: ~34%* • Plateau production: expected to be ~100,00
Slide 20: Community & social programs
Community & social programs For personal use only Donation of 100 bins to Serrakunda markets Tallinding school rehabilitation project Donation of soccer balls and uniforms to local community
Slide 21: Another big year ahead
Another big year ahead For personal use only • 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 offsh
Slide 22: Contact us
Contact us For personal use only 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 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