Far Ltd · ASX:FAR
Far — Citi's 8th Annual Investment Conference (October 2016)
18 slides from Far's conference presentation, Oct 18, 2016
Slide 1: SNE - a world class oil field offshore Senegal
SNE - a world class oil field offshore Senegal For personal use only Citi's 8th Annual Investment Conference 18 October 2016
Slide 2: About FAR
About FAR • Africa focussed oil company with high potential For personal use only ASX Ticker FAR exploration and appraisal assets Share price* A$0.08 • Fifth largest independent E&P company listed on the ASX Cash* A$66.3m • Basin opening FAN-1 and SNE-1 oil discoveries offshore Issued shares 4.46bn
Slide 3: FAR in Senegal
FAR in Senegal • FAR has been in Senegal since 2006 For personal use only OFFSHORE SENEGAL PSC FAR 16.7% paying interest, 15% beneficial interest • Senegal is a peaceful democracy with a stable Operator: Cairn Energy PLC outlook (S&P sovereign credit rating B+/B) and projected growth rate of 6% next
Slide 4: World hot spot for oil and gas discoveries
World hot spot for oil and gas discoveries 2013 – No deep water drilling offshore Senegal 2016 – Offshore oil and gas discoveries For personal use only The basin opening FAN-1 and SNE-1 oil discoveries have made Senegal one of the world’s most attractive locations for exploration. Major gas discover
Slide 5: Senegal geology and FAR discoveries
Senegal geology and FAR discoveries For personal use only SNE-1 oil discovery (Nov 2014) Oil gravity 32 degrees API Gross oil column 96m • Gross oil-bearing interval of > 500m FAR gross contingent • No water-bearing sands intersected recoverable resource* P90 (1C): 348 mmbbls, P50 (2C): 641 mm
Slide 6: SNE field outline and well locations
SNE field outline and well locations For personal use only ~9km ~5km Each SNE well has confirmed: • ~100m gross oil column • High quality 32⁰ API oil SNE field • Presence and area correlation of principle >350 km² reservoir units 6
Slide 7: SNE appraisal program
SNE appraisal program For personal use only Appraisal drilling to date • Size of oil pool ✔ • Test reservoir properties and deliverability from logging, coring and testing ✔ • Program completed safely, efficiently and under budget Future activity • 2 firm appraisal wells • Measure field connectivity
Slide 8: Size of the SNE oil field
Size of the SNE oil field For personal use only Pre-Drill Post discovery RISC audited Latest RISC audited (Oct 2014) (Nov 2014) (April 2016) (August 2016) P90 : 50mmbbls 1C: 150 mmbbls 1C: 277 mmbbls 1C: 348 mmbbls P50 : 154 mmbbls 2C: 330 mmbbls 2C: 561 mmbbls 2C: 641 mmbbls P10 : 350 mmbbls 3C: 67
Slide 9: Deliverability of oil from SNE
Deliverability of oil from SNE For personal use only Confirmed reservoir quality and ability to flow at commercial rates SNE-2 lower and upper reservoirs units • Gross 12m: 8,000 bopd through 3/4“ choke (stabilised SNE-2 flow test constrained flow) • Gross 15m: 1,000 bopd through 3/8“ choke (unstabi
Slide 10: Future drilling program
Future drilling program For personal use only New Senegal drilling program to Stena Drillmax commence late 2016 • New drilling program to consist of two firm appraisal wells over SNE field • Multiple optional drilling slots • FAR is fully funded through the proposed firm well program Drilling progra
Slide 11: Scratching the surface of the prospectivity
Scratching the surface of the prospectivity For personal use only • Undrilled exploration prospects with >1bn bbls (unrisked) potential* • New joint venture 2015 3D seismic shot along trend from SNE • New FAR Djiffere 3D seismic earned FAR option over 75% W.I. • Preliminary processed seismic product
Slide 12: Status of SNE anchor project
Status of SNE anchor project For personal use only SNE project classified by FAR as Development Pending Planning is now underway to Classification determine the optimum SNE development scenario Currently in pre-FEED stage (concept select)* Low cost environment Project to deliver cost reductions (25%
Slide 13: SNE development and tie back concept
SNE development and tie back concept • Standalone FPSO: with expansion For personal use only capability for satellite tie-backs • FAR’s phased development concept has plateau production of 140,000 bopd and first oil in 2022* • Development expenditure: US$13-$15/bbl* • Operating expenditure: US$12-$1
Slide 14: Operator economic development scenario
Operator economic development scenario SNE stand alone development (based on Operator 2C of 473 mmbbls) For personal use only US$12.50/bbl Prior Cairn Energy Source: Cairn Energy estimates (refer Cairn Energy Half Yearly Result 16/08/2016 and Cairn Energy Capital Markets Day presentation 11/05/2015)
Slide 15: SNE story so FAR
SNE story so FAR For personal use only 21 months from discovery to FAR statement of commerciality 15
Slide 16: FAR value adding activity
FAR value adding activity • Joint Venture pre-FEED studies underway for an For personal use only SNE anchor development project with scope for phasing • Optimizing SNE development plan and preparing for submission to Government • Drilling to resume offshore Senegal late 2016 • Update FAR’s prospecti
Slide 17: Contact us
Contact us For personal use only Level 17, 530 Collins Street Melbourne VIC 3000 Australia T: +61 3 9618 2550 info@far.com.au far.com.au Connect with FAR Limited:
Slide 18: 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
FAR — Citi's 8th Annual Investment Conference (October 2016) on 6ix