FAR LIMITED — AGM Information 2014

May 27, 2014

FAR delivers a year of success

Annual General Meeting | 28 May 2014

Cath Norman

*Reference ASX releases dated 27 Feb 2013, 5 Feb 2014, 11 Mar 2014, best estimate, gross, unrisked prospective resources, 100% basis, oil only 2

Capital Structure
ASX Ticker		FAR
Shares on issue		2,499,846,742
Share price*		A$0.046
Market capitalisation*		A$115M
Cash as at 31 March 2014 (unaudited)		A$27.1M

*As at 27 May 2014

Board with significant experience

	Nicholas Limb Non-ExecutiveChairman Appointed 2012	Geophysicist and investment banker 15 years as MD/Chairman of an ASX listed, international mining company, Australia. 10 years in Financial services with May and Mellor and HSBC. 35 years industry experience in the resources industry.
	Catherine Norman Managing Director Appointed Nov 2011	Geophysicist 6 years as MD of Flow Energy Limited. 10 years as Managing Director of international oil services company in the UK developing projects in Europe, Africa and the Middle East region. 27 years experience in the resources industry.
	Ben Clube Executive Director and Commercial Manager Appointed 2013	Geologist and Chartered Accountant 26 years of experience in the resource sector. Senior Finance Executive BHP Petroleum where he held roles across the full life cycle of exploration, development and operations. Finance Director and Company Secretary of Oilex Ltd prior to joining FAR.
	Charles Cavness Non-Executive Director Appointed 1994	Attorney at law Served in the legal departments of two large American oil companies, Penzoil Corporation and Arco. He has spent his entire career in the oil industry and consequently has experience in the United States, Latin America and the Middle East. 35 years experience in the oil sector.
	Albert Brindal Non-Executive Director Appointed 2007	Fellow Certified Practising Accountant Director of the Company since 2007 and served as the Company Secretary since 2000. Broad commercial experience and Chairman of Remuneration Committee.

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Exposure to world class acreage

• 9 exploration licenses in 3 West and East African countries, combined 31,400 km[2] area

• 2 wells with Cairn and ConocoPhillips offshore Senegal commenced April 2014

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Senegal Kenya
Unexplored frontier Exciting frontier
Billion barrel potential Large equity positions
AGC Profond
Multiple prospects
Expansive acreage
Guinea-Bissau
Sinapa discovery
Drill ready
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*Reference ASX releases dated 27 Feb 2013, 5 Feb 2014, 11 Mar 2014, best estimate, gross, unrisked prospective resources, 100% basis, oil only

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FAR’s prospects in offshore West Africa

Strong acreage position in Senegal, Guinea Bissau & AGC Profond

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Senegal

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• Funded through drilling of two wells

• Drilling commenced April 2014

• Partners are Cairn Energy (40%) and ConocoPhillips (35%)

• FAR carried through US$196M drilling costs

• FAR received US$10M in cash

• Testing 1.5 billion barrels of oil in two wells, 225 million barrels net to FAR[*]

• Size of total prize pool 3.5 billion barrels oil, 525 million barrels net to FAR[*]

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*From FAR internal prospective resources 27 Feb 2013, best estimate, gross, unrisked prospective resources, 100% basis, oil only

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Senegal: Prospects and Leads summary

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• Petroleum system established – Rufisque Dome

• World class source rocks

• Drilling shelf edge and deepwater fan

• 550 million barrels[*] in shelf well (SNE-1)

• 900 million barrels[*] in deepwater fan well (FAN-1)

• 3.5 billion barrel[*] follow up potential in

success case

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*From FAR internal prospective resources 27 Feb 2013, best estimate, gross, unrisked prospective resources, 100% basis, oil only

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Senegal: Drilling progress
Drilled to date
Yet to drill
SNE-1
1150m WD
FAN-1 3500m TD
1437m WD
5300m TD
Buried Hills Play
Albian Clastic Play
Aptian Carbonate Play
Campanian-Maastrichtian Fan Play
Santonian Fan Play
Oil Migration Oil Traps
Source kitchen
West East
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Senegal: Drilling progress

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Senegal

Rig has been mobilised and has commenced drilling offshore Senegal

• Cajun Express 5[th] generation semi-submersible rig

• Testing approximately 1.5 billion barrels of prospective resources[*]

• Significant follow-up potential on success

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*Unrisked best estimate, 100% basis as per FAR ASX release dated 27 February 2013

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Senegal

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Photos courtesy of Cairn Energy

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Senegal

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Mme Aminata Ndoye Toure : Director General of Hydrocarbon Direction, Mme Maimouna Ndoye Seck : Minister of Energy and Mme Aminata Toure : Prime Minister of Senegal

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Photos courtesy of Cairn Energy

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Senegal

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Guinea-Bissau and AGC

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• One block in AGC, three blocks offshore Guinea-Bissau

• Large permit area > 15,000 km[2]

• Large upside exposure in Senegal success case

• Proven oil-prone basin

• 1 billion barrels prospective resources identified offshore Guinea-Bissau[*]

• Includes Sinapa oil field to be appraised H1 2015

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• Unrisked best estimate, 100% basis as per FAR ASX release dated 4 February 2014

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FAR’s prospects in East Africa

Large equity in Kenya’s fast emerging Lamu Basin

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Kenya

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• Large acreage position in Lamu Basin

• Two exploration blocks

• Great neighbours in BG, Anadarko, Total, ENI…

• Acreage tightly held

• FAR actively farming down offshore wells in Block L6 and L9

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• Reference FAR ASX Dec quarter report dated 31 January 2014

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Kenya

• Continuous reef trend with proven oil at both ends of the kitchen

• FAR has drill ready reef prospects defined on 3D seismic

• Core analysis completed this year proves 1,000m of oil shows through the carbonate reef in Maridadi-1

• BG recently completed Sunbird-1 well in Block 10A

• Oil and gas discovery

• Hydrocarbon column

• Returned hydrocarbons to surface

• High porosity and permeability

• Further drilling in 2014/5 by BG, Anadarko, Afren

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• Reference FAR ASX Dec quarter report dated 31 January 2014

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Kenya Block L6 : Prospects and leads

Onshore

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• Farmout deal concluded with Milio International

• Fully carried on 2D seismic and well

• Program to commence June 2014

Offshore

• Drill ready prospects defined on 3D seismic

• Identification of new Miocene reef play drilled by BG : Sunbird-1

• 3.7 billion barrel oil prospectivity[*] in block

• Shallow water < 350m

• Kifaru prospect: 178 million barrels oil[*]

• Tembo prospect: 327 million barrels oil[*]

• Multiple follow drill targets in success case

• FAR retains 60% equity

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*From FAR prospective resources 27 Feb 2013. Best estimate, unrisked prospective resources , 100% basis, oil or gas

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Kenya Block L6 : Maridadi well result

Maridadi-1B

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Kenya Block L6 : Maridadi well result
Maridadi-1B
Seal
Reservoir
Oil Shows
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Kenya Block L6 : Reef prospects
SW NE
Kifaru West
Kifaru
Miocene reef play
prospective resources
Kifaru prospect 178 mmbbls
Kifaru West prospect 130 mmbbls
Other total 1,249 mmbbls
Total 1,557 mmbbls
Total net to FAR 934.2 mmbbls
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*From FAR internal prospective resources 27 Feb 2013, best estimate, gross, unrisked prospective resources, 100% basis, oil only

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FAR’s prospects in offshore Western Australia

• Proven oil and gas province of NW Shelf

• Shallow water

• Low risk, low cost exploration

• 100% interest in two blocks

• 450 million boe prospective resources[*]

• New 3D seismic in late 2014

• Best estimate, gross, unrisked prospective resources, 100% basis, as per ASX release dated 11/3/2014

Community projects

• 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

Into 2014

• Approximately $27.1M cash

• 5 wells to be drilled in next 12 months…

• 3 free carried wells in program totaling approximately $230M

• Drilling program has commenced testing 1.5billion barrels of oil

• Kenya story yet to unfold

The year ahead

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2014 2015
SENEGAL
Drill Planning Drilling Drilling Evaluation of Drilling
Sangomar Profond
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun
BG/Anadarko
KENYA
Farmout Onshore Seismic Acquisition & Processing Drill Planning Drilling Evaluation of Drilling
L6 onshore
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun
KENYA
Farmout/drill planning Drill Planning Drilling Evaluation of Drilling
L9
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun
GUINEA BISSAU
Drill Planning Drilling Evaluation
Blocks 2, 4A & 5A
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun
Australia
G &G Farmout 3D Seismic Acquisition & Processing
NWS
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun
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This timetable is indicative and final timetable will be determined when government approvals, availability of rigs and seismic vessels are confirmed

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Disclaimer

• This presentation has been prepared by FAR Limited (‘FAR’). It should not be considered as an offer or invitation to subscribe for or purchase any shares in FAR or as an inducement to make an offer or invitation with respect to those securities. No agreement to subscribe for shares in FAR will be entered into on the basis of this presentation.

• This presentation contains forward-looking statements that are not based on historical fact, including those identified by the use of forward-looking terminology containing such words as ‘believes’, ‘may’, ‘will’, ‘estimates’, ‘continue’, ‘anticipates’, ‘intends’, ‘expects’, ‘should’, ‘schedule’, ‘program’, ‘potential’ or the negatives thereof and words of similar import.

• FAR cautions that these forward-looking statements are subject to risks and uncertainties that could cause actual events or results to differ materially from those expressed or implied by the statements. The forward looking statements are expressly subject to this caution. FAR makes no representation, warranty (express or implied), or assurance as to the completeness or accuracy of these forward-looking statements and, accordingly, expresses no opinion or any other form of assurance regarding them. FAR will not necessarily publish updates or revisions of these forwardlooking statements to reflect FAR’s circumstances after the date hereof.

• By its very nature exploration and development of oil and gas is high risk and is not suitable for certain investors. FAR shares are a speculative investment. There are a number of risks, both specific to FAR and of a general nature which may affect the future operating and financial performance of FAR and the value of an investment in FAR including and not limited to economic conditions, stock market fluctuations, oil and gas demand and price movements, regional infrastructure constraints, securing drilling rigs, timing of approvals from relevant authorities, regulatory risks, operational risks, reliance on key personnel, foreign currency fluctuations, and regional geopolitical risks.

• This presentation does not purport to be all inclusive or to contain all information which you may require in order to make an informed assessment of the Company’s prospects. You should conduct your own investigation, perform your own analysis, and seek your own advice from your professional adviser before making any investment decision.

• Cautionary Statement for Prospective Resource Estimates – With respect to the Prospective Resource estimates contained within this report, it should be noted that the estimated quantities of Petroleum that may potentially be recovered by the future application of a development project may relate to undiscovered accumulations. These estimates have an associated risk of discovery and risk of development. Further exploration and appraisal is required to determine the existence of a significant quantity of potentially moveable hydrocarbons.

• Information in this report relating to hydrocarbon resource estimates has been compiled by Peter Nicholls, the FAR exploration manager. Mr Nicholls has over 30 years of experience in petroleum geophysics and geology and is a member of the American Association of Petroleum Geology, the Society of Exploration Geophysicists and the Petroleum Exploration Society of Australia. Mr Nicholls consents to the inclusion of the information in this report relating to hydrocarbon Prospective Resources in the form and context in which it appears. The Prospective Resource estimates contained in this report are in accordance with the standard definitions set out by the Society of Petroleum Engineers, Petroleum Resource Management System.

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