Far Ltd · ASX:FAR
Far — First Australian Resources — Shareholder Meeting (May 2005)
39 slides from Far's shareholder meeting presentation, May 2005
Slide 1: AGM Presentation (May 2005)
The following presentation contains certain “forward-looking material” that involves estimates, assumptions and uncertainties. No assurance can be given that FAR’s expectations or goals will be realised and actual outcomes may differ materially from those presented. AGM PRESENTATION (May 2005) FIRST
Slide 2: Overview of FAR
Overview of FAR z Non Operator Focus (more $$$ in wells) z Active International Portfolio (USA/China) z Strong 3D driven 2005 Program (10 wells) z Cash of $2.8m (at 31 March 2005) C AP I T AL S T R U C T U R E Shares Mkt Cap Ordinary shares 204,968,461 $ 19,062,067 Listed options (ex @ 7c exp 31 Jul
Slide 3: Share price performance
Share price performance FAR FAR Share Share Price Price and and Volume Volume -- 11 Jul Jul 2000 2000 to to present present $0.20 $0.20 45,000,000 45,000,000 $0.18 $0.18 40,000,000 40,000,000 $0.16 $0.16 35,000,000 35,000,000 $0.14 $0.14 30,000,000 30,000,000 $0.12 $0.12 25,000,000 25,000,000 $0.10
Slide 4: Bonus options granted to FAR shareholders in 2003
These options granted to FAR shareholders as bonus options in 2003 4
Slide 5: FAR Objectives
FAR Objectives z Achieve drilling success of 80% in 10 well program planned during 2005 z Lodge oilfield development plan in China early third quarter z Exploit new growth opportunities in USA and double sales in 2005 z Significantly increase shareholder value. Why FAR’s program should succeed? z Si
Slide 6: Review of 2004
Review of 2004 Prospect Well FAR% Result Production China 3 wells 5 Wei 12-8 West in Potential start up Jan 2007 Beibu Gulf 22/12 pre-development > 15,000 bopd WA-254-P 1 well 11 P&A New small field development Muggles concepts being studied may impact Sage (mini FPSO) < 2 years (?) Lake Long 1 well
Slide 7: Lake Long
Lake Long z Lake Long has produced 300BCF and 20 mmbbls (70 mmboe) from 26 zones z FAR has had 100% success rate in all five wells at Lake Long z FAR recently increased interests z Entire field has 3D seismic cover z 6 producing wells generating ~ A$1m pa to FAR z 2 new Hollywood prospects following
Slide 8: Looking Back: Lake Long Deep
LOOKING BACK South North LAKE LONG DEEP Proposed Well Path 13 BCFG Hollywood Sands Depth 11,000’ Hollywood Cib. Op SALT 15,500’ ~766 BCFG Cib. Op.Sands
Slide 9: Bay Courant (FAR 20%)
Bay Courant (FAR 20%) z Discovered by Tenneco 1973 z On trend with 70BCF Apache operated Golden Meadow field z Drilled Nov 2004. First Production planned June 2005. z Within 1 mile of pipeline z Deeper gas play (29 BCF) or 5mmboe below 12,800 ft. Farmout discussions progressing Bay Courant rig 9
Slide 10: Conclusions
Oil price z China uses >6 million bbls per day of which 2.5 is imported (up 40% in first 7 months of 2004) z USA uses 20 million bbls per day (60% imported) z Oil adjusted for inflation from peak of 1979 would be greater than $100 per bbl Conclusions 1. We are in a bull market for energy driven by C
Slide 11: Crude Oil Spot
Crude Oil Spot $60 WTI Cushing $55 yn uo —] $48.55 E $ / Barrel $40 - on 1 05/03/2004 07/02/2004 09/01/2004 11/02/2004 01/04/2005 03/07/2005 05/05/2005 06/02/2004 08/03/2004 10/01/2004 12/03/2004 02/03/2005 04/06/2005 May 3, 2004 -May 12, 2005 = wars Economics ©2005 wwew.wirg.com 479) 793.4081 —— Cl
Slide 12: Natural Gas Spot
$8.00 $7.50 $7.00 rm $6.50 a = $6.00 = # $5.50 $5.00 $4.50 $4.00 Natural Gas Spot Henry Hub $6.645 PTT . 05/03/2004 06/02/2004 08/03/2004 10/01/2004 12/03/2004 02/03/2005 04/06/2005 07/02/2004 09/01/2004 11/02/2004 01/04/2008 03/07/2005 05/05/2005 May 3, 2004 -May 12, 2005 wipe Economics £2005 www.
Slide 13: Drilling Program 2005
DRILLING PROGRAM 2005 USA z Welder Ranch High Impact Deep Wilcox Gas play Texas z Lake Long Deep Hollywood Gas play Louisiana z Eagle-2 Oilfield project, California z Bay Courant Deep Gas Play, Louisiana z Clear Branch Deep Gas Play, Louisiana z South Grosse Tete Oil/Gas Play, Louisiana z Rainosek s
Slide 14: Potential impact of USA program (unrisked)
Potential impact of USA program (unrisked) Prospect Welder S Grosse Eagle 2 Rainosek Clear Bay Lake Ranch Tete Branch Courant Long FAR interest 9% 17% 15% 22% 9% 15% 4% Discovery 40 BCF 462-615 BCF 26 BCF 5 BCF 100BCF 29 BCF 10 BCF Size (P50) 1.4mmbl 17-23 mmbl 14mmbl Potential $9m $206-$276m $46.9m
Slide 15: Welder Ranch
UNITED STATES OF AMERICA 4 San Francisco EAGLE PROSPECT oo Los Angeles Pacific elder Ranch Ocean KILOMETRES sy (7 # Cheyenne WEST BUFFALO WALLOW HARDEMAN BASIN OILFIELDS LOUISIANA / TEXAS PROGRAM Atlantic Dallas & Texas New Orleans See Ocean Gulf Mexico of Mexico — LOCATION MAP cc)
Slide 16: Welder Ranch Project (9%)
Welder Ranch Project (9%) •Amplitude anomaly driven gas play on 1,000 acre ami •Objectives defined by 3D •Probable reserves 39BCF and 1.4mmbbls (pre drill) •Nearby wells (3,900 feet) producing 32 million cubic feet per day (11,000 psi) •DHC US$2.7m •No 2 well now drilling at 10,900 feet toward plann
Slide 17: South Gross Tete - FAR 17%
} | “ = a | =) L ee | SOUTH GROSS TETE - FAR 17% = ~ = . DEEP WILCOX ADDIS 2D PROJECT SCHWING UPTHROWN ( 1500 Ac. Closure, 800’ N. Dip Miaultiplez, Bol Mex — 11,300" Basin Floor Fan, 16,500’—18,000" = sz —— oe 0.5 TCFG Possible —— de 3—5 MMBO Possible 4-6 Wells | \ LEAR RE-ENTRY Nodosaria — 14,500’
Slide 18: South Gross Tete
SOUTH GROSSE TETE South Gross Tete [FAR to update – Background / Overview to project] WELL LOCATION AGREED 19
Slide 19: Potential Value of South Grosse Tete
Potential Value of South Grosse Tete Formation Potential Net Value Per FAR FAR (17%) Share A$million Undiluted (speculative) Bolmex 3-5 mmbls 10-16 5-9 cents 11,650 ft Nonion 12-15 BCF 4-5 2-3 cents 13,000 ft Nodosaria 5 mmbbls 49 24 cents 13,500 100 BCF Wilcox 9-13 mmbbls 143-206 70 cents to $1.00
Slide 20: Eagle Oilfield development project
Eagle Oilfield development project San Joaquin Basin, California z Low risk 27 million barrel and 50 BCF stratigraphic oil field development play with 223 BOPD and 1 MMCFD 1986 field discovery well with 31 metre gross oil column z No exploration risk because Eagle has proven oil and gas z Targeting
Slide 21: Impact of Eagle Development Success
IMPACT OF EAGLE DEVELOPMENT SUCCESS (SPECULATIVE-UNRISKED) $0.03IMPACT PER SHARE (undiluted) (VPE case) $0.05 LAKES OIL $0.38 $0.45 22
Slide 22: aE es
| - - aE es STHAVEN pa -4 . y ; q ~ r Ma . . * te ee 1 SS ‘ef . “d 4 5 4 wd . ee | 14981 —. > = oF ’ Pinch out/zero edge of wary Boil sand: ¥3, S 7 o > = ps 25 OK idmnic.li |. ‘i = Eg _ _ f a i i i | PESWee Wee eee he IP a x Test 4. A Tht (Raroownl etree rom wot aad
Slide 23: Eagle Oil Pool Development Project
East Coalinga Oil Field, Gatchell stratigraphic trap analogue, 504 MMBO & 536 BCFG, March 2001 EAGLE OIL POOL DEVELOPMENT PROJECT SAN JOAQUIN BASIN, CALIFORNIA Oil recovery of 250 barrels from well bore, Eagle workover, March 2001 EAGLE OIL POOL DEVELOPMENT PROJECT San Joaquin Basin, California 24
Slide 24: Eagle-1 and Eagle-2 expected production
500 to 1000 BOPD and 1.5 - 3.5 MMCFD expected 1 km Proposed EAGLE-1 Eagle-2 100m Planned Eagle-2 Horizontal Well Bore 25
Slide 25: Australia's north west shelf WA-254-P
Australia’s north west shelf WA-254-P FAR (10.7%) Operated by Apache Partners include Woodside Sage discovery 8.3 million bbls Mini FPSO studies in progress 26
Slide 26: Little Joe Prospect (WA-254-P)
Little Joe Prospect (WA-254-P) • The Little Joe prospect is earmarked for 3rd qtr 2005 drilling by Santos on (Woodside operated) adjoining permit WA-208-P. Mapping by Apache shows that up to 35% (of the 26 million barrel potential) lies within WA-254-P • The Prospect is a Tithonian sand structural t
Slide 27: Little Joe: Prospect Summary
Little Joe: Prospect Summary Little Joe-1 Exploration well (new Play type) Block: WA208-P(65%), WA-254-P(35%) Operator: Woodside Pg: 18% FAR WI: 10.7%(WA-254-P) RF 30-50% Unrisked Reserves in place (MMSTB) P50 P10 Truncated 37 71 ¾Stand Alone or tied into Legendre facilities. ¾1st oil 2007 at 20000
Slide 28: Carnarvon Basin Chronostratigraphic Section
Carnarvon Basin Chronostratigraphic Section LITTLE JOE OBJECTIVE MAURADER (DUOMONTE) TARGET 29
Slide 29: WA-254-P Charge History
WA-254-P Charge History Oil Charge area M KS C RO R CED U SO Oil Charge area 30
Slide 30: Marauder: Prospect Summary
Marauder: Prospect Summary Prospect: Marauder-1 Well Type: Exploration Block: WA-254-P Pg: 29% Operator: Apache Pc(oil): 14% Key Risk: Migration/Gas Legendre Only Unrisked Reserves (MMSTB) P90 P50 P10 Mean Truncated 6.0 17.0 47.7 22.5 ¾ Legendre Look-alike development – Leased Platform and FSO ¾ 1st
Slide 31: Offshore China Beibu Block 22/12
FAR 5% La OFFSHORE CHINA x BEIBU BLOCK 22/12 FIRST AUSTRALIAN RESOURCES N.L. EXISTING DISCOVERIES, 7 PROSPECTS AND LEADS
Slide 32: Original 12-8 plan (pre drill)
Original 12-8 plan (pre drill) 33
Slide 33: 12-8 West Conceptual plan
12-8 West Conceptual plan First Production: 15,000 bopd Jan 2007 Recoverable Reserves: 8 - 10 million bbls 34
Slide 34: Annex on 12-1 Platform
Annex on 12-1 Platform 35
Slide 35: 12-8 East and West Concept
12-8 East and West Concept First Production: 25,000 bopd 2008? Recoverable Reserves: 15 million bbls 36
Slide 36: Offshore China: WEI 6-12-1 Discovery and Updip potential
OFFSHORE CHINA: WEI 6-12-1 Discovery and Updip potential 37
Slide 37: 6-12 South Prospect planned 2005
6-12 SOUTH PROSPECT PLANNED 2005 (possibly July) 38
Slide 38: Production from three countries in two years (?)
Production from three countries in two years (?) z Success at Welder Ranch/SGT will expand FAR production in USA z China – JV has agreed to 3rd term and ODP to commercialise 12-8 Field z Sage to focus on mini FPSO for possible development z Little Joe/Maurader (Duomonte)offer rapid development if su
Slide 39: FAR: Where are we heading?
Where are we heading? FAR 40
First Australian Resources — Shareholder Meeting (May 2005) on 6ix