Far Ltd · ASX:FAR
Far — First Australian Resources — Shareholder Meeting (May 2008)
61 slides from Far's shareholder meeting presentation, May 8, 2008
Slide 1: First Australian Resources Ltd AGM Presentation
For personal use only First Australian Resources Ltd AGM Presentation May 2008 1
Slide 2: Disclaimer
For personal use only DISCLAIMER ¾ This presentation does not constitute an offer to sell securities and is not a solicitation of an offer to buy securities. It is not to be distributed to third parties without the consent of First Australian Resources Limited. (“FAR”). ¾ This presentation contains
Slide 3: Agenda
Agenda For personal use only • Overview • Investor Relations/Share Price • Energy Price/Revenues • China • Australia • North America • Senegal • 2008 Program • Close 3
Slide 4: Overview of FAR
For personal use only Overview of FAR • Oil & Gas Exploration • International Focus West Africa, China and North America • 24 years of history • Cash of $5 million as at 31 Mar 2008 • High future leverage from 3D programs shot in 2007 Shares Mkt Cap (@ 10c) Ordinary shares 483,553,344 $ 48,355,334 U
Slide 5: Global Exploration Portfolio
GLOBAL EXPLORATION PORTFOLIO For personal use only 5
Slide 6: We Are Generating Opportunities
“WE ARE GENERATING OPPORTUNITES” For personal use only “OUR MISSION IS TO TURN THESE OPPORTUNITIES INTO SHAREHOLDER WEALTH” “FAR PURSUES THIS MISSION OFF A VERY SMALL CAPITAL BASE IN A CAPITAL INTENSIVE SECTOR– A RISK REWARD STRATEGY” 6
Slide 7: 2007 – A Seismic Change for FAR
For personal use only “2007 – A Seismic Change for FAR” 7
Slide 8: Seismic Events 2007
For personal use only Seismic Events 2007 3D acquisition, processing and mapping on world class Senegal project. (FAR 30%) 3D acquisition with multiple objectives onshore Gulf Coast (FAR 34%) 3D acquisition, processing at Wild River, Alberta, Canada (FAR 29%) 8
Slide 9: Agenda
Agenda For personal use only • Overview • Investor Relations/Share Price • Energy Price/Revenues • China • Australia • North America • Senegal • 2008 Program • Close 9
Slide 10: FAR v Junior Oil & Gas Peers
For personal use only FAR v Junior Oil & Gas Peers Sub Prime Melt Down --- FAR --- PEERS 10
Slide 11: TOP Analysis
For personal use only TOP 40 Analysis 11
Slide 12: Agenda
Agenda For personal use only • Overview • Investor Relations • Energy Price/Revenues • China • Australia • North America • Senegal • 2008 Program • Close 12
Slide 13: Headlines: Oil Hits New Record
HEADLINES (this week): For personal use only Oil Hits New Record; Goldman Sachs Predicts Oil Prices Could Rise to $150 to $200 Within 2 Years CHINA /INDIA THE MAIN DRIVERS ''There are 350 million people in India who are classified as middle class. That's bigger than America. Their middle class is la
Slide 14: NYMEX Crude Oil Futures
$ / Barre! NYMEX Crude Oil Futures Close ( Front Month ) $130 greens $120 MN ¥ $110 n a or = © o —) —) radetary $80 A nd $70 (af 60 Ih “weHelT,_,,,;,-8 0-8! TvOow(__HH \X\ X qq X\ , ql," RHO, , TTT TTT TAT TT TATE TT TTT TAT ATT AT TTT TTT TTT AT TTTT TT ATT AT TTTT AT TTT TTT TTT TT TAT ATTA AT TTT
Slide 15: Natural Gas Futures
$/ MMBTU atural Gas Futures Close (Front Month) $12.00 $11.00 $10.00 sew ay $8.00 AW $7.00 MV $6.00 5 00 WOU UU . er rr ee rr ee ee ee Te Te eT Ue a $11.150 05/01/2007 06/29/2007 08/29/2007 10/29/2007 12/28/2007 02/29/2008 04/30/2008 05/31/2007 07/31/2007 09/28/2007 11/28/2007 01/30/2008 04/01/2008
Slide 16: Quarterly Sales and Oil Price
For personal use only Quarterly Sales AUD$ Oil Price US$ per bbl 800000 150 600000 100 Sales 400000 50 Oil Price 200000 0 0 Mar-07 Jun-07 Sep-07 Dec-07 Mar-08 May-08 16
Slide 17: Quarterly Sales and Gas Price
For personal use only Quarterly Sales AUD$ Gas Price US$ per mmbtu 800000 12 10 600000 8 Sales 400000 6 4 Gas Price 200000 2 0 0 Mar-07 Jun-07 Sep-07 Dec-07 Mar-08 May-08 17
Slide 18: Sales Graphs Show Small Production Base
For personal use only SALES GRAPHS DEMONSTRATE THAT FAR HAS A SMALL PRODUCTION BASE FROM LOWER DRILLING LEVELS WHILE FUNDS HAVE BEEN DIRECTED INTO BUILDING A GROUND FLOOR PROSPECT INVENTORY OVER THE PAST TWO YEARS 18
Slide 19: Agenda
Agenda For personal use only • Overview • Investor Relations/Share Price • Energy Price/Revenues • China • Australia • North America • Senegal • 2008 Program • Close 19
Slide 20: May 2006 Oil Discovery Offshore China
IN MAY 2006, FAR MADE AN For personal use only OIL DISCOVERY IN SHALLOW WATER, OFFSHORE CHINA FAR 5%* Water Depth 5 - 40m Area 364 sq km Wei 6-12-1 exploration well drilled 1Q 2002 – small oil discovery. Wei 6-12S-1 exploration well, drilled 1Q 2006 – oil discovery. 5,750 BOPD cumulative flow from t
Slide 21: Block 22/12 Development Planning
For personal use only Block 22/12 Development Planning 21
Slide 22: Beibu Gulf Pre-Development Area
BEIBU GULF PRE-DEVELOPMENT AREA Block 22/12 is in a For personal use only proven hydrocarbon area Work is progressing on an Overall Development Plan for Wei 6-12 S and Wei 6-12 and Wei 12-8 West Oil Fields There are six undeveloped oil accumulations in the block 22
Slide 23: Block 22/12, Beibu Gulf Further Possible Accumulations
BLOCK 22/12, BEIBU GULF For personal use only FURTHER POSSIBLE ACCUMULATIONS 23
Slide 24: Block 22/12 Possible Development Plan
Block 22/12 Possible Development Plan For personal use only 24
Slide 25: Block 22/12 Possible Expanded Plan
Block 22/12 Possible Expanded Plan For personal use only 25
Slide 26: How Block 22/12 May Be Developed
HOW BLOCK 22/12 MAY BE DEVELOPED For personal use only 26
Slide 27: Agenda
Agenda For personal use only • Overview • Investor Relations/Share Price • Energy Price/Revenues • China • Australia • North America • Senegal • 2008 Program • Close 27
Slide 28: For personal use only
For personal use only (10.7%) (8.0%) 28
Slide 29: Stokes Bay (FAR 8%)
For personal use only Stokes Bay (FAR 8%) 29
Slide 30: Stokes Bay – Reef Depiction
For personal use only Stokes Bay – Reef depiction? 30
Slide 31: Stokes Bay
Stokes Bay Early Flow back after swab ~ 650 bpd fluid For personal use only Testing Nullara Reef (2800m) resumes early 3rd qtr 2008 31
Slide 32: Agenda
Agenda For personal use only • Overview • Investor Relations/Share Price • Energy Price/Revenues • China • Australia • North America • Senegal • 2008 Program • Close 32
Slide 33: US Gulf Coast
For personal use only US Gulf Coast 33
Slide 34: NE Waller Gulf Coast 3D Seismic
NE Waller Gulf Coast 3D Seismic • “Play” based on 100 miles of existing 2D seismic data For personal use only • On strike with fields producing over a quarter trillion cubic feet of gas and thirty million barrels of liquids • Experienced operator (AYCO) - successful track record • FAR the biggest pl
Slide 35: Survey In Progress – Oct
For personal use only Survey In Progress – Oct 07 35
Slide 36: NE Waller Frio Prospect F1 (34%)
NE Waller Frio Prospect F1 (34%) For personal use only 36
Slide 37: NE Waller Yegua Prospect Y1 (34%)
NE Waller Yegua Prospect Y1 (34%) For personal use only 37
Slide 38: NE Waller Lower Wilcox Prospect (34%)
NE Waller Lower Wilcox Prospect (34%) For personal use only 38
Slide 39: NE Waller – Deep Glenrose (34%)
For personal use only NE Waller – Deep Glenrose (34%) Glen Rose Glen Rose Strike Line Dip Line Objective Acres Depth (Ft.) Content Glen Rose 850 23,000 Gas 39
Slide 40: Lake Long S.L. #28 ST
Lake Long S.L. 328 #28 ST proposed Sept 2008 (FAR 31.4%) (14 Sand) For personal use only 2007 well producing steady 3.1mmcfd and 60bopd (FAR 10.18%) 40
Slide 41: Canada: Wild River 3D
Canada WILD RIVER 3D For personal use only 41
Slide 42: Wild River Wabamun Prospect
Alberta Energy & Utilities Board Designated Pool Boundaries For personal use only Wabamun Prospect Outline (up to 50 Bcf) WILD RIVER Wabamun Mineral Rights held jointly by F.A.R. (29.1214%) and 10 MMCF/D Wabamun Test in 1968 Suncor (70.8786%) (all yellow) s Alberta Royalties slow down progress! 42
Slide 43: Agenda
Agenda For personal use only • Overview • Investor Relations/Share Price • Energy Price/Revenues • China • Australia • North America • Senegal • 2008 Program • Close 43
Slide 44: Senegal Block Map
MAURITANIE _ eel ae Neer ey ~ g x — | . 4 Louga x i be wore a Pa ~, a a ¢ ~ “ $ “i ™~ 4 . — S Diourbel “age MALI Rufisque Senegal East 1 Profond %, I < > Sangomar 5 ee ey a y Ne , Pe grr ser ate ef — — a * OPO Lien —_ % * ? a os _ > i — ; SF ae —s JINEE BISSAU ied & rn . ~ r 4 _ ys FORTESA EDISON &
Slide 45: FAR Is the Only ASX Listed Entry Into This World Class Play
For personal use only “FAR IS THE ONLY ASX LISTED ENTRY INTO THIS WORLD CLASS PLAY” 45
Slide 46: Senegal Licences
Senegal Licences Hunt 60% STATUS First Australian 30% For personal use only Petrosen 10% • Area – 14,981 km2 (3.7 million acres) • Licence signature July 15th 2004 Mauritania • 2nd Phase of licence with extension through November 2008 ACTIVITIES • Acquired 2050 km2 3D in Q1 2007 • Final Processed vo
Slide 47: Inferred Geological Model for Late Cretaceous-Tertiary
INFERRED GEOLOGICAL MODEL FOR THE LATE CRETACEOUS- — © TERTIARY Onshore Upper Cretaceous delta systems ‘Cenomanian: . Albian/Aptian Carbonates Neocomian/Jurassic : Carbonates Senonian: unc. .., Deepwater 0. Jurassic/Cretaceous : : muds/Carbonates Adapted from Marco @Edison, 2005:
Slide 48: Senegal – Prospects and Play Types
Senegal – Prospects and Play Types L Cretaceous Carbonate shelf For personal use only Margin play Top Aptian Senonian Unconformity 3D line 1541 Depth Albian Buried hills 178 sq km closure 3D L in highlighted area in e 90 76 Santonian fans 3d Line 1541 Slope fan play Depth Albian 3d Line 9076 Prospec
Slide 49: Senonian Unconformity - Depth
For personal use only N 3D perspective No r th ch an ne l Mi dd le ch an ne l So ut h ch an ne l Senonian Unconformity - Depth 49
Slide 50: Upper Slope High Amplitude Santonian Events
Upper slope high amplitude Santonian events onlapping Senonian Unc N For personal use only Senonian unconformity surface North fan complex Eroded Albian Paralic sands 10 km topography transported to slope by Eroded Albian incised topography channels on Middle fan complex eroded shelf upper slope sta
Slide 51: South Channel – Stacked High Amplitude Santonian Fans
South channel – stacked high amplitude Santonian fans Senonian N unconformity Upper slope Santonian fans For personal use only Surface N Stacked footprint encompasses +30 sq km 51
Slide 52: South Channel – Stacked High Amplitude Santonian Fans
South channel – stacked high amplitude Santonian fans Senonian N unconformity For personal use only surface Upper fan Lower fan Middle fan 52
Slide 53: Santonian Age Fan – Single Fan/Single Reservoir Potential
SANTONIAN AGE FAN — SINGLE FAN/SINGLE RESERVOIR POTENTIAL OO/IP AREA NETPAY @® K MMBO ACRES ET 400 15 8 183 3855 102 17 200 516 10,000 225 25 1000 400} Analogue: : Denth l0 target 3700.m 12,140) Deposttional Environment : Combination- Structural & stratigraphic : Early Cretaceous 1400) : 290m : 3-5
Slide 54: Aptian Shelf Edge Closure
Aptian shelf edge closure Top Aptian 10 km For personal use only depth 3D perspective Top Aptian depth Inline 1579 map view Inline 1579 Str closure 178 sq km 3 way dip closure highlighted s re taceou T op C Large dip closed prospective interval Senonian Unc Lower Albian Top A ptian to Neocomain Neoc
Slide 55: Albian Buried Hills Closures
Albian buried hills closures Senonian unconformity For personal use only Mid dle surface c ha 10 km nn e l 10 km Intra Albian 4 way stratigraphic horizon under Abian closure unconformity under Senonian Inline 1356 Inline 1356 Sou th c unconfornity han ne l 34 sq km closure at mapped horizon s taceou
Slide 56: Shelf Edge Closure – Potential
SHELF EDGE CLOSURE — POTENTIAL Well TVD, 4000 m 13,100) NET OO/IP AREA PAY fe 2) K MUMBO ACRES =F % mD PSO 40 4 000 16 3.6 50 Mean 1128 22,925 172 tf 1000 P10 3082 54 550 452 10 10000 Water Den fn | Amposta Basin yy a: P| Reservoir Rock Platform | : Tilted Horst : Early Cretaceous : 194m (636ft) : K
Slide 57: Turonian Source
Turonian Source For personal use only 70 Ma 60 Ma Tu ron ian k itc 3D 3D he Top Turonian n outline outline depth 3D perspective •Turonian source kitchen adjacent to identified leads Present day • Source rock continuously in oil window since late Cretaceous 3D outline 57
Slide 58: Permit Timelines
For personal use only Permit Timelines Work program for Sangomar Rufisque, Senegal Second Period (2 years) 1 year extension Third Period (2 years) 2007 2008 2009 2010 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 50% Relinquishment 3D Acq. fast track mig processing Interpretation Farmout Contract
Slide 59: Agenda
Agenda For personal use only • Overview • Investor Relations/Share Price • Energy Price/Revenues • China • Australia • North America • Senegal • 2008 Program • Close 59
Slide 60: 2008 Estimated Activity Program
2008 ESTIMATED ACTIVITY PROGRAM - sussecT To FARMOUTS/OPERATIONAL PARAMETERS [Lake Long _ SL 328 28ST 314 = Betbu Gulf Block 22/12 EP 104 Stokes Bay-1 Testimg | 8.0 wae? |
Slide 61: More info at www.far.com.au
For personal use only More info at www.far.com.au 61
First Australian Resources — Shareholder Meeting (May 2008) on 6ix