Slide 1: Annual General Meeting
Annual General Meeting For personal use only 15 May 2015
Slide 2: FAR Senior management
FAR Senior management For personal use only Cath 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 Aus
Slide 3: FAR in 2014
For personal use only FAR in 2014 3
Slide 4: FAR in 2014: elephants lurking under Senegalese waters
FAR in 2014 For personal use only Yes, there are elephants lurking under Senegalese waters! 4
Slide 5: 2014 Highlights
2014 Highlights For personal use only • 2 world class discoveries offshore Senegal : FAN-1 and SNE-1 wells • Basin opening discoveries • Prolific and rich source rock proven • SNE commerciality low risk • SNE twice the pre-drill size • 2/2 Success rate on frontier exploration wells • SNE discovery r
Slide 6: Market snapshot
Market snapshot Australia For personal use only • Entry into ASX 300 Index Europe • High liquidity relative to peers 19% Asia North America • Strong balance sheet, no debt Rest of the 78% World Institutional Investors FAR register as at 24 February 2015 Capital Structure ASX Ticker FAR Share price (
Slide 7: Performance relative to the oil price
Performance relative to the oil price For personal use only 7 Oct 14: 10 Nov 14: 11 May 15: FAN-1 oil discovery SNE-1 oil discovery; Senegal evaluation work gross oil interval of 95m gross oil column, plan announced - 3 firm $0.16 more than 500m, net oil pay 36m and 3 optional wells plus net oil pay
Slide 8: FAR in Africa
FAR in Africa For personal use only • Africa focused SENEGAL KENYA • Early mover advantage FAN-1 and SNE-1 Large equity • Wide portfolio discoveries, position in extensive running emerging basin room • Significant African experience GUINEA-BISSAU • Focus on Senegal and NW Lookalike SNE Africa follow
Slide 9: Senegal
Senegal • Stable democracy: For personal use only 198 years • Peaceful country • Capital Dakar • FAR in Senegal since 2006 • FAR was operator with 90% equity until August 2013 • FAR one of longest standing oil companies in country • FAR has strong relationships in Senegal • S&P sovereign credit rati
Slide 10: Senegal
Senegal For personal use only • PSC area of 7,490 km2 : Sangomar, RUFISQUE, SANGOMAR & SANGOMAR DEEP OFFSHORE 16.7% paying interest, 15% beneficial interest Sangomar Deep and Rufisque blocks Operator: Cairn Energy PLC • Joint venture partners are: FAR 15%, Cairn Energy (Operator 40%), Kosmos ConocoP
Slide 11: Senegal prospects and leads
Senegal prospects and leads For personal use only 11
Slide 12: FAN-1 and SNE-1 seismic section/schematic
FAN-1 and SNE-1 seismic section/schematic FAN-1 SNE-1 For personal use only 1430m WD 1150m WD W E Source Kitchen Oil Migration Oil Traps 12
Slide 13: FAN-1 oil discovery
FAN-1 oil discovery • Oil discovery announced 7 Oct 2014 For personal use only • 100km offshore in the Sangomar Deep block • 1,427m water depth/TD of 4,927m North Fan complex • Stacked deepwater Cretaceous sands • Oil gravity 28-41 degrees API FAN (Beer prospect) • Gross oil bearing interval >500m •
Slide 14: FAN 3D amplitude section
FAN 3D amplitude section For personal use only • Thick, oil-bearing interval, interpreted to be a stacked series of oil columns • Oil-water contact not encountered • Possibly drilled on edge of reservoir section • Analysis of well data ongoing • Reprocessed 3D seismic data completed late 2015 • Not
Slide 15: SNE-1 oil discovery
SNE-1 oil discovery • Discovery announced 10 Nov 2014 For personal use only • 100km offshore in Sangomar Deep block • 1,100m water depth / TD of 3,107m • World’s largest oil discovery in 2014 (IHS CERA) • 2C resources net to FAR 50mmbbls* • Twice the size of the pre-drill estimate for Albian sands S
Slide 16: SNE-1 oil discovery
SNE-1 oil discovery • Cretaceous clastic shelf edge play For personal use only Gas • Excellent sandstone reservoir Gross pay 107m • Oil gravity 32 degrees API Net pay 19m • Upside potential in thin sands Ave porosity 25% Ave hydrocarbon saturation 70% Oil Gross pay 96m Net pay 36m Ave porosity 24% A
Slide 17: SNE top reservoir
SNE top reservoir For personal use only • Conformance of amplitude with structure • Pre-drill estimate 154 mmbbls (gross, best estimate prospective resource)* • Pre drill estimate at amplitude anomaly • Post drill field significantly larger Pre drill field outline Gas-Oil contact Oil-Water contact *
Slide 18: Senegal geological shelf
Senegal geological shelf FAN-1 SNE-1 For personal use only N S 18
Slide 19: Discoveries at FAN-1 and SNE-1
Discoveries at FAN-1 and SNE-1 FAN-1 SNE-1 For personal use only 19
Slide 20: Lookalikes of SNE discovery
Lookalikes of SNE discovery FAN-1 SNE-1 For personal use only Sirius Soleil 20
Slide 21: Buried Hill and Fan prospects
Buried Hill and Fan prospects FAN-1 SNE-1 For personal use only Sirius Bellatrix Soleil Central South Fan Fan 21
Slide 22: Senegal shelf prospects
Senegal shelf prospects For personal use only • Extensive prospect inventory mapped on 3D seismic • Two distinct play types on shelf 77mmbbl* – Shelf edge (SNE) – Buried Hills 74mmbbl* 204mmbbl* 141mmbbl* 168mmbbl* 101mmbbl* *Reference ASX releases dated 13 Apr 2015 best estimate, gross, unrisked pr
Slide 23: Senegal shelf prospects
Senegal shelf prospects For personal use only • The minimum economic field size for a standalone FPSO hub is ~200 mmbbls (Operator estimate) • Tie-back to hub development: 77mmbbl* ~75 mmbbls over 35-40km radius 74mmbbl* (Operator estimate) 204mmbbl* 141mmbbl* 168mmbbl* 101mmbbl* *Reference ASX rele
Slide 24: Bellatrix prospect
Bellatrix prospect For personal use only • Buried Hill play Bellatrix gross unrisked prospective resources* • Strong amplitude response Low estimate 69 mmbbls • Amplitude conforms to structure Best estimate 168 mmbbls • Prospect overlies northern extent of High estimate 356 mmbbls SNE field S N *Ref
Slide 25: Sirius prospect
Sirius prospect For personal use only • Shelf edge play • “Lookalike” SNE • Amplitude conforms A to structure Sirius prospect B • On trend with SNE field SNE Field A Up-dip seal, proven B to work at SNE-1 Sirius gross unrisked prospective resources* Low estimate 84 mmbbls Best estimate 204 mmbbls Hi
Slide 26: Senegal undrilled prospect inventory
Senegal undrilled prospect inventory* For personal use only Operator chance of discovery significantly higher than FAR (refer Cairn Energy Capital Markets Day 11 May 2015) • Bellatrix 80% • Sirius 54% • Soleil 67% *Reference ASX release dated 13 Apr 2015 best estimate, gross, unrisked prospective re
Slide 27: Evaluation work program
Evaluation work program For personal use only • Submitted to Government early May • 3 year evaluation period • 3 firm wells commencing Q4 2015 • Initial evaluation focused on SNE discovery – First 2 of 3 wells to be appraisal wells • Plan to explore shelf prospectivity and tie back opportunities – T
Slide 28: SNE Field appraisal drilling
SNE Field appraisal drilling For personal use only • Aimed at declaration of commerciality (DOC) • Principal objective to prove minimum economic field size (MEFS) • Operator MEFS 200mmbbls • 1C resource 150mmbbls, 2C resource 330mmbbls*: low risk appraisal • At least one of the two wells will be flo
Slide 29: Exploration drilling
Exploration drilling For personal use only • Principal aim to build shelf resource • 3 likely target prospects – Bellatrix – Sirius – Soleil • Awaiting reprocessed seismic data • Final drill location Q3 • Probability of geological success around 50% 29
Slide 30: Seismic for 2015
Seismic for 2015 For personal use only • Approx 2000km2 new seismic • Commencing Q3 • Aim to close eastern boundaries of prospects and leads • Potential to add to prospect inventory in north and east • Shallow water (40-800m) in Rufisque block • Very competitive pricing 30
Slide 31: Good news! Industry costs coming down
Good news! Industry costs coming down For personal use only • Day rate for deepwater rigs offshore W Africa heavily reduced • JV locking in Ocean Rig Athena at market based rate • Offshore upstream capital costs are expected to decline 12% on average between 2014 and 2016 • Labour pressure is also e
Slide 32: Notional Development Concept
Notional Development Concept For personal use only FPSO (Floating Production Storage and Offtake vessel) • Hub at SNE Field • Tie back to nearby fields • Tanker support • Multiple subsea centres • Possible shallow water developments with platforms Development expenditure: • Dependent on concept solu
Slide 33: Senegal Economics
Senegal Economics* 18 For personal use only NPV/bbl (US$) 16 • 330mmbbls at SNE* 14 12 • 50mmbbls net to FAR* 10 • CAPEX $17-26/bbl NPV/bbl at FID 8 6 (~US$5.8bn)* 4 2 • OPEX $5-15/bbl* 0 US$90/bbl @ 2014 costs US$70/bbl@ 10% cost US$50/bbl @ 20% cost • Futures curve price of oil reduction reduction
Slide 34: Senegal project timetable
Senegal project timetable Evaluation Exploitation For personal use only DOC for SNE field 2014 2015 2016 2017 2018 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Drilling of FAN-1/SNE-1 FAN-1/SNE-1 data analysis Well planning Reprocessing existing 3D seismic Firm 3 wells Contingent well
Slide 35: FAR outside Senegal
For personal use only FAR outside Senegal
Slide 36: Guinea-Bissau
Guinea-Bissau For personal use only • Three blocks, operator Svenska SINAPA (BLOCK 2) AND ESPERANÇA (BLOCKS 4A & 5A) 21.43% paying interest, 15% beneficial interest • New 3D seismic evaluating SNE look-a-like Operator: Svenska Petroleum Exploration AB (‘Svenska’) prospect (Atum) • Sinapa has a gross
Slide 37: Kenya
Kenya For personal use only • The Lamu Basin has proven oil at both BLOCK L6 BLOCK L9 60% interest offshore 30% interest ends of Miocene reef play 24% interest onshore Operator: Ophir Energy PLC Operator: FAR Limited • Sunbird-1 well in Block 10A was an oil and gas discovery • Maridadi-1 well in L6
Slide 38: Australia
Australia For personal use only • WA-458-P exploration permit offshore WA-458-P, WA-457-P OFFSHORE DAMPIER BASIN 100% paying and beneficial interest Western Australia is surrounded by Operator: FAR Ltd discoveries • Structural and combined structural- stratigraphic leads at proven reservoir levels •
Slide 39: 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 40: 2015 Revealing the prize
2015 Revealing the prize For personal use only • SNE ranked as number one discovery worldwide for 2014 • Appraisal of the SNE field to commence in Q4 • Current success rate is 2 from 2 for exploration wells offshore Senegal • Firm commitment to drill another exploration target • Undrilled prospects
Slide 41: 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 42: 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