FAR LIMITED — AGM Information 2018

May 29, 2018

FAR builds on solid foundations

Annual General Meeting 30 May 2018

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FAR team

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Our company in 2017

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FAR relative performance

FAR has largely performed in line with the oil price and the ASX200 Energy index

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Brent oil:
US$73.3 +29%
$0.10 ASX-200 Energy:
11,179 +24%
FAR:
9.0cps +20%
$0.09
$0.08
$0.07
$0.06
$0.05
Jan-17 Apr-17 Jul-17 Oct-17 Jan-18 Apr-18
FAR S&P ASX-200 Energy Index (rebased) Brent oil (US$/bbl, rebased)
Share price (A$p.s.)
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Source: IRESS. Note: Market data as at 1-May-18. S&P ASX-200 Energy Index and Brent price indexed to FAR’s share price of 7.5cps, as at 2-Jan-17.

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Building on solid foundations

• Partner in the world’s largest oil discovery for 2014, offshore Senegal, W Africa

• Secured prized blocks offshore, The Gambia

• Drilling first exploration well in The Gambia since 1979

• No dry wells drilled in 11 straight wells offshore Senegal

• Well positioned for upturn in global oil markets

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FAR in the MSGBC Basin

• The Mauritania-Senegal-Guinea-BissauConakry Basin has emerged as a global hotspot for oil and gas exploration

• FAR is one of the largest acreage holders in the MSGBC Basin

• FAR in Senegal since 2006, Guinea-Bissau since 2008 and The Gambia since March 2017

• Basin opening FAN-1 and SNE-1 oil discoveries, 2014

• SNE ranked as worlds largest oil discovery in 2014

• FAR 15% Senegal (Cairn Energy Operator), 20% Guinea-Bissau (Svenska Operator), 40% of blocks A2 and A5 offshore The Gambia

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FAR LICENCES OFFSHORE SENEGAL, THE GAMBIA & GUINEA-BISSAU

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FAN-1 and SNE-1 opened up Senegal

Industry hotspot – increased investment and activity

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• FAN and SNE discoveries 2014

• FAN South and SNE North discoveries 2017

• 100% drilling success (11 wells) to date in FAR’s Senegal acreage

• Major gas discoveries made in 2015, 2016, 2017 by Kosmos and partners

• BP farm-in to Kosmos acreage introduces a large IOC to the basin

• CNOOC farm-in to Impact acreage in AGC March 2017

• Total awarded ROP block May 2017

• PETRONAS farmin to FAR’s blocks A2/A5 offshore The Gambia, March 2018

• Stellar Energy Advisers stated ‘The SNE discovery saved African exploration’

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FAR in Senegal

• FAR introduced Cairn Energy and ConocoPhillips to the joint venture in 2012

• SNE Field discovered in November 2014

• SNE-1 was the first oil exploration well drilled offshore Senegal in 40 years

• JV now invested ~ US$930M in four years

• 11[th] successful oil well drilled in 2017

• SNE field 641mmbbls 2C resource[*]

• All discoveries made to date within tie back range of a hub development at SNE

• Undrilled prospects in total have prospective resources of 673 mmbbls oil*

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*Reference FAR 2017 Annual Report to Shareholders, best estimate, gross, unrisked, recoverable prospective and contingent resources, 100% basis, oil only

Senegal project 2017

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SNE appraisal program

• Seven appraisal wells drilled to complete evaluation of the SNE Field

• Objectives of the appraisal program: Size, deliverability and connectivity of reservoirs

• All appraisal wells proved 97m gross oil column

• Deliverability of reservoirs understood – world class flow rates in primary reservoirs

• VR-1 well proved thickening of the lower reservoir units to the west and excellent reservoir properties

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Senegal in 2018

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Senegal development video

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SNE development and tie back concept

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• Full field, phased development

• Standalone FPSO : planned expansion capability for tie-backs

• Estimated costs (life of field)*

• CAPEX: ~ US$12/bbl

• OPEX: ~ US$7/bbl

• FPSO lease costs: US$3-7/bbl

• Breakeven oil price : US$35/bbl*

• Unlevered IRR at US$60/bbl: ~34%*

• FAR Plateau production : rate expected to be ~100,000 bopd (phase 1)

SNE Field development concept

• Drilling cost and CAPEX reductions expected to reduce CAPEX by estimated 20-30% in ITT process

• Estimated CAPEX to first oil: US$2bn*

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*Operator presentation 23 May 2018

Annual demand for floating drill rigs

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Source: McKinsey Energy Insights, March 2018

Oil market outlook

In percent

Source: WoodMackenzie

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Source: McKinsey Energy Insights, March 2018

*ConocoPhillips Senegal B.V. alleges that its shares were transferred to a Woodside affiliate and thereafter it is alleged that ConocoPhillips Senegal B.V. changed its name to Woodside Energy (Senegal) B.V.

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FAR in The Gambia

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Prospectivity of the A2/A5 blocks

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• Blocks A2 and A5 highly prospective following the discovery of SNE field

• RISC Audit of blocks A2/A5 prospectivity released 21 November 2017

• Samo Prospect Prospective Resources[*]

Samo Prospect	mmbbls oil
Low estimate (P90)	335
Best estimate (P50)	825
High estimate (P10)	1,713
Chance of success (CoS)	55%

• Total Best Estimate 1,158 mmbbls (463 mmbbls net to FAR)[*]

• 3D seismic data currently being reprocessed to optimise drilling location

• Success will be transformational for people of The Gambia

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*Reference FAR 2017 Annual Report to Shareholders, best estimate, gross, unrisked prospective resources, 100% basis, oil only

The Gambia farmout to PETRONAS

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• FAR farmed out 40% interest in the A2 and A5 permits to PETRONAS in February 2018

• FAR retains 40% equity*

• PETRONAS to pay 80% of well costs to a cap of US$45M

• FAR to remain Operator of the Joint Venture through the exploration period including the drilling of the Samo-1 exploration well

• PETRONAS is the National Oil Company (NOC) of Malaysia with development expertise

• FAR net cash forecast to increase by approximately A$17M at close*

BLOCK A2 & A5

FAR 80% interest and Operator Erin Energy 20% partner

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• On government and partner approval of the transaction

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Samo Prospect: Block A2, The Gambia

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Regional schematic cross-section

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• Samo prospect defined on 3D seismic

• Access to same, prolific source kitchen as SNE and is in same geological play

• Same upper/400 series reservoirs as SNE

• Thickening of 400 series sands to the south

• Samo reservoirs have been drilled by 9 wells in Senegal drilling program at 100% success rate on the structural trend – high chance of drilling success

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Drill readiness

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Drill readiness

• Scheduled to spud well in Q4 with results by year end

• EIA approval received in February – stakeholder engagement ongoing

• LTI free (324 days)

• No environmental incidents

• Operator organisation and local office established

• Shore base contracts awarded

• Final well location by end June

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Guinea-Bissau

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Guinea-Bissau

• Currently evaluating SNE look-alike prospect on shelf edge

• Atum has best estimate 471mmbbls oil*

• Commenced farmout with partner Svenska

• Drilling before end of 2020

• Upside potential on proven play

SINAPA (BLOCK 2) & ESPERANÇA (BLOCKS 4A & 5A) 21.42% paying interest, 21.42% beneficial interest Operator: Svenska Petroleum Exploration AB

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*Reference FAR 2017 Annual Report to Shareholders, best estimate, gross, unrisked prospective resources, 100% basis, oil only

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Kenya
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Kenya

• L6 exploration permit in the Lamu Basin

• Lamu Basin has proven oil at both ends of Miocene reef play

• • Permit currently in suspension due to on ground strife preventing ground access

BLOCK L6 60% interest Operator: FAR Limited

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*Reference FAR 2017 Annual Report to Shareholders, best estimate, gross, unrisked prospective resources, 100% basis, oil only

Australia

• WA-458-P exploration permit offshore WA is surrounded by discoveries

• Mapped leads at proven reservoir levels

• Combined unrisked prospective resources for WA-458-P estimated to be 359mmbbls[*]

• 3D seismic survey to be completed Q4

WA-458-P OFFSHORE DAMPIER BASIN 100% paying and beneficial interest Operator: FAR Ltd

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Donation of soccer balls and uniforms to local community

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Another big year ahead

• Value drivers for the year ahead are large and converging on the second half of 2018

• Final JV agreed resources and economics for the SNE Field development

• Submission and approval of the SNE Field Exploitation plan

• Drilling of the Samo-1 well offshore Gambia

• Finalise funding arrangements for the SNE Field development

• Arbitration resolution

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Contact us

Level 17, 530 Collins Street Connect with FAR Limited: Melbourne VIC 3000 Australia T: +61 3 9618 2550 info@far.com.au far.com.au

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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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