Slide 1: FAR Investor Presentation
FAR Investor Presentation For personal use only February 2016
Slide 2: FAR snapshot
FAR snapshot • Africa focused: Primarily Senegal and Guinea Bissau For personal use only • 6th Largest pure E&P on ASX: ASX 300 company • FAN-1 and SNE-1: Major basin opening oil discoveries in Senegal • SNE Field largest oil discovery for 2014: IHS CERA • SNE Appraisal drilling ongoing: Successful
Slide 3: FAR market summary
FAR market summary For personal use only Member of ASX 300 energy index Capital Structure since March 2015 ASX Ticker FAR Share price (29 Jan 2016) A$0.074 FARJOY (Family Office) is the largest Market cap (29 Jan 2016) A$273M single shareholder with 11% Cash at 31 Dec 2015 A$60.7M 16% Institutional
Slide 4: Senegal
Senegal • Strong in-country relationships: FAR For personal use only has been in Senegal since 2006 OFFSHORE SENEGAL PSC 16.7% paying interest, 15% beneficial interest Operator: Cairn Energy PLC • Peaceful democracy: been a democracy for 200 years • Solid growth: 4.7% GDP in 2014 • S&P sovereign cre
Slide 5: FAN-1 and SNE-1 seismic section/schematic
FAN-1 and SNE-1 seismic section/schematic W E For personal use only SNE-1 FAN-1 SNE-2 SNE-3 BEL-1 Buried Hill Shelf Edge Fan 5
Slide 6: FAN-1 oil discovery
FAN-1 oil discovery • Proved prolific source For personal use only • Oil gravity 28-41 degrees API • Gross oil bearing interval >500m containing discrete oil columns with no oil-water contact (29m net) • Operator gross oil (STOIIP) in place* – P90: 250 mmbbls – P50: 950 mmbbls – P10: 2,500 mmbbls •
Slide 7: SNE-1 oil discovery
SNE-1 oil discovery • Excellent reservoir average 25% For personal use only porosity • Oil gravity 32 degrees API • Gross oil column of 96m (36m net) • Contingent recoverable resource* – Low estimate (1C): 240 mmbbls – Best estimate (2C): 468 mmbbls – High estimate (3C): 940 mmbbls • Appraisal progr
Slide 8: SNE Field appraisal program
SNE Field appraisal program For personal use only • 3 well back to back drilling program • Commenced Nov 2015 • First well completed (SNE-2) ● • Currently preparing for DST of SNE-3 ● • Prove MEFS of ~200mmbbls • Test reservoir deliverability from logging, coring and testing ● • Test upside potentia
Slide 9: SNE Field appraisal well locations
SNE Field appraisal well locations For personal use only N BEL-1 SNE-2 SNE-1 SNE-3 S Bellatrix Thin sands Gas cap Oil column Blocky sands 9
Slide 10: SNE-2 result
SNE-2 result* For personal use only Gross oil column 103m 216m core collected through reservoir SNE-2 has confirmed ● “commercial” flow rates from two drill stem tests • 8,000 bopd from thick sands ● • 1,000 bopd from thin sands Further resource revision expected : results are expected to ● support
Slide 11: Senegal prospects and leads
Senegal prospects and leads For personal use only • Estimated 1.5 billion bbls undrilled prospective resources* • Undrilled Buried Hills play to be drilled with Bellatrix well (BEL-1) *Reference FAR ASX releases dated 13 Apr 2015 best estimate, gross, unrisked prospective resources, 100% basis, oil
Slide 12: Bellatrix exploration prospect
Bellatrix exploration prospect For personal use only • Buried Hills exploration Bellatrix unrisked prospective resources* prospect overlies northern flank of SNE Low estimate 69 mmbbls • Strong amplitude response, Best estimate 168 mmbbls conforms to structure High estimate 356 mmbbls • FAR estimate
Slide 13: Expansion of 3D seismic coverage
Expansion of 3D seismic coverage • 2015 3D seismic For personal use only undertaken by Senegal JV • FAR Djiffere 3D seismic • FAR has the option to earn a 75% working interest in ● Djifferre block • Processing of data from ● both surveys now taking place ● *Reference FAR ASX release dated 24 Septemb
Slide 14: Development of SNE Field and tie back potential
Development of SNE Field and tie back potential For personal use only 77mmbbl* 74mmbbl* 204mmbbl* 141mmbbl* 168mmbbl* 101mmbbl* *Reference FAR ASX releases dated 13 Apr 2015 best estimate, gross, unrisked prospective resources, 100% basis, oil only 14
Slide 15: Senegal economic models
Senegal economic models 18 For personal use only • Very good PSC terms 16 NPV/bbl (US$) 14 • Base planning case: 12 NPV/bbl at FID Assumes 330mmbbls 10 8 (~50mmbbls net to FAR) 6 4 • CAPEX $17-26/bbl 2 • OPEX $5-15/bbl 0 US$90/bbl @ 2014 costs US$70/bbl@ 10% cost US$50/bbl @ 20% cost reduction reduc
Slide 16: Why FAR?
Why FAR? • Fully funded three well Senegal appraisal program underway For personal use only • Ahead of drilling schedule likely to drill fourth well in 3 well budget • SNE-2 confirmed “commercial” flow rates • Threshold economic field size (~200 mmbbls gross) expected to be delivered at SNE in suppo
Slide 17: Additional information
Additional information For personal use only
Slide 18: Board with significant experience
Board with significant experience For personal use only Nicholas Limb Geophysicist and investment banker Non-Executive Chairman 15 years as MD/Chairman of an ASX listed, international mining company, Australia. Appointed 2012 10 years in Financial services with May and Mellor and HSBC. 38 years indu
Slide 19: Activity schedule to mid 2016
Activity schedule to mid 2016 For personal use only 2016 January February March April May June DRILLING Option Well 4 3D SEISMIC processing and preliminary interpretation • Ocean Rig Athena drill ship • Major offshore Senegal 3 well drilling and evaluation program commenced end October 2015 • The SN
Slide 20: FAR performance versus ASX energy index
FAR performance versus ASX 200 energy index For personal use only 0.12 0.10 FAR: 0.08 Share price (A$p.s.) 7.4cps – 14% ASX 200 Energy: 0.06 7,511 -35% 0.04 Brent oil: US$35.25 -29% 0.02 0.00 Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 Source: So
Slide 21: FAR performance versus African focused peers
FAR performance versus African focused peers For personal use only 0.12 0.10 0.08 Share price (A$ per share) FAR (13.6%) Cairn Energy (20.3%) 0.06 Ophir Energy (37.0%) Brent Oil (US$/bbl) (37.6%) Kosmos Energy (45.5%) 0.04 Tullow Oil (58.5%) 0.02 - Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15 Au
Slide 22: FAR is a leading Australian E&P company
FAR is a leading Australian E&P company For personal use only Australian Mid Cap E&P Market capitalisation in A$m 600 500 400 300 200 100 0 BPT KAR FAR DLS AWE SXY HZN CVN Source: ASX data as at 25 January 2016 (excludes Woodside, Oil Search and Santos) FAR is the 6th largest pure E&P company listed
Slide 23: SNE contingent resource upgrade
SNE contingent resource upgrade Independent Resources Report completed by RISC for FAR’s SNE oil discovery, offshore For personal use only Senegal* • This supports a 42% increase in the gross, best estimate, recoverable SNE contingent resource to 468 MMstb (prior 330 MMstb). FAR net 70 MMstb (prior
Slide 24: Senior management
Senior management For personal use only Catherine Norman Over 20 years experience in the mineral and oil & gas exploration industry, having held executive positions both in Australia and Managing Director in the UK. Cath has carried out operating assignments in Europe, Africa, the Middle East and Au
Slide 25: Contact us
Contact us For personal use only Level 17, 530 Collins Street Melbourne VIC 3000 Australia T: +61 3 9618 2550 www.far.com.au
Slide 26: 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