Far Ltd · ASX:FAR
Far — Africa Down Under Conference 2011
19 slides from Far's conference presentation, Sep 1, 2011
Slide 1: Offshore West Africa: World Class Oil Potential
For personal use only OFFSHORE WEST AFRICA: WORLD CLASS OIL POTENTIAL AFRICA DOWN UNDER CONFERENCE 2 SEPTEMBER 2011, PERTH
Slide 2: Disclaimer
DISCLAIMER For personal use only This presentation has been prepared by FAR Limited (“FAR” or the “Company”). It should not be considered as an offer or invitation to subscribe for or purchase any securities in the Company or as an inducement to make an offer or invitation with respect to those se
Slide 3: Overview of FAR Portfolio
OVERVIEW OF FAR PORTFOLIO For personal use only • FAR presently has the largest acreage holding of any ASX listed entity in West Africa. – Senegal: 3 Blocks; 7,490km2 total licence area; 2,086km2 3D seismic acquired; multiple prospects; 100% Working Interest. – Guinea-Bissau: 3 Blocks; 5,832 km2 tot
Slide 4: ASX Code: FAR - Attracts Institutional Investment
ASX Code: FAR FAR is an elastic stock with FAR ATTRACTS INSTITUTIONAL INVESTMENT high liquidity around events For personal use only Share Price (Aug10-Aug11) High: 0.175 Low: 0.029 Current: 0.032 Ordinary Shares on Issue: 1,245,401,164 Convertible Notes on Issue: 6,506,419 Options on Issue: 24,800,0
Slide 5: Why West Africa?
WHY WEST AFRICA? For personal use only From 1989 to 2009, Africa’s estimated oil reserves more than doubled to 127.7 billion barrels, equivalent to about 9.6% of the world’s total, according to BP. Explore with www.far.com.au 5
Slide 6: Why West Africa?
WHY WEST AFRICA? For personal use only According to U.S. Geological Survey** estimates, Mauritania to northern Namibia may hold 71.7 billion barrels of undiscovered oil. With 7 licences, covering 23,170 km2, FAR is well placed to explore this potential. ** http://pubs.usgs.gov/bul/b2207-a/b2207-a.pd
Slide 7: Why West Africa?
WHY WEST AFRICA? For personal use only Location of FAR’s licences. High potential basis – mega projects likely (source: Anadarko) Explore with www.far.com.au 7
Slide 8: West African Portfolio: Senegal
WEST AFRICAN PORTFOLIO: SENEGAL For personal use only Senegal • FAR 100% Working Interest.1 • 3 Blocks; 7,490km2 total licence area. • 2,086km2 3D seismic has been acquired identifying several fans and a giant buried hills play. 1Subject to Ophir Energy plc’s option to acquire a 25% interest in the
Slide 9: West African Portfolio: Senegal
WEST AFRICAN PORTFOLIO: SENEGAL For personal use only Senegal • Multiple prospects incl. carbonate platform (mean STOOIP > 1 billion bbls) and Slope fans (mean STOOIP > 600 million bbls). • FAR has given notice under the terms of the PSC to enter the second renewal period which commenced on 23 Nov 2
Slide 10: West African Portfolio: Guinea-Bissau
WEST AFRICAN PORTFOLIO: GUINEA-BISSAU For personal use only Guinea-Bissau • FAR 21.43% Working Interest. • 3 Blocks (5,832km2) with Svenska as Operator. • Licences include the ‘Sinapa’ oil discovery (30m of water, Mean STOOIP of 178 million bbls). • Several large prospects including Sardinha prospec
Slide 11: West African Portfolio: AGC
WEST AFRICAN PORTFOLIO: AGC AGC Profond Block For personal use only • FAR 10% Working Interest. • Multiple undrilled prospects incl. Xalam(Mean STOOIP 618 million bbls). • Block covers 9,838km2 in water depths from 50m to 3,500m. • PSC in first renewal period - extended to 19 Sept 2012 • Future work
Slide 12: Adjacent Exploration: The Gambia
ADJACENT EXPLORATION: THE GAMBIA For personal use only FAR Senegal Licence boundary Senergy indicates total unrisked mean recoverable potential for 2 Gambian licences (A1 & A4) at 4.6 billion barrels. African Petroleum Corp Ltd’s Gambian play overlaps into FAR Senegal Licence. Well flagged by AOQ in
Slide 13: Recent & Proposed West African Exploration
RECENT & PROPOSED WEST AFRICAN EXPLORATION Senegal - FAR Gambia & Liberia For personal use only One Well 2012 African Petroleum Application lodged to enter drilling phase Multiple well program 2011/12 following 3D acquisition in Liberia and AGC Gambia Ophir/FAR Kora-1 2011 Sierra Leone & Liberia Ana
Slide 14: West African Deal Values 2010/11
WEST AFRICAN DEAL VALUES 2010/11 For personal use only • In 2010/11: – African Petroleum committed to spending +US$60m for 60% of 2 Gambian PSC’s and vendor shares of AU$500m for 2 blocks in Liberia. – Dana paid US$19.6m for 23% offshore Guinea. – COPL paid US$85m for 1 block in Liberia. – Chevron p
Slide 15: Peer Comparison
PEER COMPARISON For personal use only Based on information concerning contracted blocks between Senegal and Liberia available in the public domain as at 28 August 2011. Explore with www.far.com.au 15
Slide 16: FAR Has Re-Rating Potential
FAR HAS RE-RATING POTENTIAL For personal use only Licences 7 5 1 Area (km2 gross) 23,160 13,663 24,993 3D Coverage 8,317 7,600 3,635 Market Valuation (31 Aug 2011) Total Shares 1,245m 1,600m 124.3m Market Price 0.032 0.65 USD4.47 Market Capitalisation AUDm $40 $1,040 $520 FAR has acquired 3D seismic
Slide 17: Corporate Social Responsibility
CORPORATE SOCIAL RESPONSIBILITY For personal use only As part of its role as a responsible corporation, FAR is dedicated to enacting policies and practices that are ethically, socially and environmentally sound. Alongside FAR’s commitment to contractual profit sharing agreements with host countries,
Slide 18: African Portfolio Growth
AFRICAN PORTFOLIO GROWTH For personal use only • The current market necessitates a cautious approach to investment. However, FAR’s strong balance sheet puts the Company in an excellent position to capitalise on growth opportunities and build on its established standing. • FAR continues to evaluate o
Slide 19: Summary
SUMMARY For personal use only • FAR has an early mover advantage in West Africa where exploration is set to intensify. • With a market capitalisation of around $40m and $26m in cash, FAR is highly leveraged to: – Senegal (FAR 100% WI) with multiple world class prospects – Guinea-Bissau (FAR 21.4% WI