Slide 1: An outstanding African success story
An outstanding African success story For personal use only Investor update presentation March 2015
Slide 2: Our company
Our company • Two world class discoveries in FAN-1 and SNE-1 wells For personal use only offshore Senegal • Appraisal planning underway • Net cash at end 2014 $67M (no debt) • Partners in Senegal: ConocoPhillips and Cairn Energy • Farmed out $240M of work program in last 2 years • Total prospective
Slide 3: FAR Share price performance relative to sector
FAR Share price performance relative to sector 500 160 For personal use only Market Cap A$269m based on closing (31-Dec-14) share 400 140 price of 8.6cps +169% yoy FAR market capitalisation (A$m) Brent Oil Price (A$/bbl) 300 120 200 100 100 80 2 3 4 Brent Oil price A$70.5/bbl -43% yoy 1 0 60 1-Jan-1
Slide 4: FAR Liquidity relative to industry peers
FAR Liquidity relative to industry peers FAR’s liquidity has substantially improved from mid 2014, supported by the discoveries, news flow and For personal use only enhanced broker coverage 1.1% 1.0% FAR: 0.94% 0.9% 0.8% 0.7% Liquidity(1) 0.6% Karoon: 0.56% 0.5% Sundance: 0.53% Drillsearch: 0.49% 0.
Slide 5: FAR's prospects offshore Senegal
FAR’s prospects offshore Senegal For personal use only Two carried exploration wells offshore Senegal First offshore drilling for 40 years and first ever deepwater wells Success in both exploration wells Derisked large inventory of prospects
Slide 6: Senegal
Senegal • Stable democracy: For personal use only 196 years • Peaceful country • Capital Dakar • Population ~14M • FAR in Senegal since 2008 • FAR enjoys good standing with the Government, Petrosen and other stakeholders in Senegal • FAR was operator with 90% equity until August 2013 • President is
Slide 7: Senegal
Senegal For personal use only • Discoveries in both in FAN-1 and SNE-1 wells RUFISQUE, SANGOMAR & SANGOMAR DEEP OFFSHORE 16.7% paying interest, 15% beneficial interest • FAR 15% interest Operator: Cairn Energy PLC • Permit area of 7,000 km2 • Partners are Cairn Energy (Operator:40%), ConocoPhillips
Slide 8: Senegal: Prospects and Leads summary
Senegal: Prospects and Leads summary For personal use only • Deepwater fan (FAN-1) well and shelf edge (SNE-1) well drilled 2014 • Two discoveries • 3.5 billion barrel* follow up potential in mapped prospects *From FAR internal prospective resources 27 Feb 2013, best estimate, gross, unrisked prospe
Slide 9: Senegal: Drilling schematic
Senegal: Drilling schematic For personal use only 9
Slide 10: Senegal: FAN-1 well discovery
Senegal: FAN-1 well discovery • 500m gross oil interval For personal use only • 29m net oil interval Pre-drill prospective resources: FAN-1* • 28o – 41o API oil Upper fan (North Canyon prospect) 304 mmbbls • No oil/water contact encountered Lower fan (Beer Prospect) 632 mmbbls Total 936 mmbbls • STO
Slide 11: Senegal: SNE-1 well discovery
Senegal: SNE-1 well discovery • Discovery in Albian sands prospect For personal use only SNE-1 gross contingent resources • 96m gross oil column Low estimate 150 mmbbls • 36m net oil column Best estimate 330 mmbbls High estimate 670 mmbbls • Excellent reservoir quality • 32o API oil • Twice the size
Slide 12: Senegal
Senegal For personal use only • Proven prolific oil generating source rock • Both FAN-1 and SNE-1 potentially scale for standalone development • Analysis of both wells continuing • Evaluation program to be submitted to Government of Senegal end April 2015 • Evaluation drilling to commence Q4 2015 •
Slide 13: FAR story unfolding
FAR story unfolding For personal use only • Significant discoveries on first two wells offshore Senegal • Significantly derisks remaining prospects in the acreage • Evaluation program to commence Q4 2015 • A$67M cash end 2014 • Kenya story yet to unfold
Slide 14: 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 14
Slide 15: Appendices
For personal use only Appendices 15
Slide 16: Senegal pre-drill prospective resources
Senegal pre-drill prospective resources For personal use only Unrisked Best FAR Unrisked Best Risked Best Estimate Estimate Prospective Working Estimate Prospective Chance of Prospective Resources Resources Interest(1) Resources (net to FAR) discovery(2) (net to FAR) Oil Prospect Play Well (mmbbl) (
Slide 17: Senegal: Global deepwater economics
Senegal: Global deepwater economics For personal use only In a US$100/bbl oil price environment the exploration prize remains very material. Deepwater also does not necessarily mean lower unit value (especially where oil is discovered). Technical challenges and costs are higher, but explorers benefi
Slide 18: Senegal: FAN-1 comparison with Jubilee
Senegal: FAN-1 comparison with Jubilee For personal use only Jubilee was one of the largest worldwide finds of 2007, and the largest find of the entire decade offshore West Africa. The Jubilee discovery was significant, not only because of its size, but also because it opened a new hydrocarbon play
Slide 19: FAR's prospects in East Africa
FAR’s prospects in East Africa For personal use only Large equity in Kenya’s fast emerging Lamu Basin Free carried through seismic and a well in 2015
Slide 20: Kenya
Kenya For personal use only • Large acreage position in Lamu Basin BLOCK L6 BOCK L9 60% interest offshore 30% interest • Farmout completed for onshore L6: 24% interest onshore Operator: Ophir Energy PLC Operator: FAR Limited total work program ~US$30M • Interest in two exploration blocks • Great nei
Slide 21: Kenya: Lamu Basin
Kenya: Lamu Basin • Proven oil at both ends of reef play BLOCK L6 BOCK L9 For personal use only 60% interest offshore 30% interest • Sunbird-1 well in Block 10A 24% interest onshore Operator: FAR Limited Operator: Ophir Energy PLC - Oil and gas discovery - Oil and gas column - Returned hydrocarbons
Slide 22: Community projects
Community projects For personal use only • Flood relief program in Senegal • Mosquito nets in Senegal • Donation of soccer balls in Guinea Bissau • Community consultation and education in all our areas of activity where appropriate
Slide 23: 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 24: 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