FAR LIMITED — Investor Presentation 2013

Feb 13, 2013

INVESTOR PRESENTATION

Feb 2013

Disclaimer

• This presentation has been prepared by FAR Limited (“FAR” or the “Company”). It should not be considered as an offer or invitation to subscribe for or purchase any securities in the Company or as an inducement to make an offer or invitation with respect to those securities. No agreement to subscribe for securities in the Company will be entered into on the basis of this presentation. It is not to be distributed to third parties without the consent of FAR.

• This presentation contains forward-looking statements and projected drilling schedules 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.

• Management of 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. Management believes that the estimates are reasonable, but should not unduly be relied upon.

• FAR makes no representation, warranty (express or implied), or assurance as to the completeness or accuracy of these projections and, accordingly, expresses no opinion or any other form of assurance regarding them. Management does not intend to publish updates or revisions of any forwardlooking statements included in this document to reflect FAR’s circumstances after the date hereof or to reflect subsequent market analysis.

• By its very nature exploration for oil and gas is a high risk business and is not suitable for certain investors. FAR securities are speculative. Potential investors should consult their stockbroker or financial advisor. 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.

• You should not act or refrain from acting in reliance on this presentation material. This overview of FAR does not purport to be all inclusive or to contain all information which its recipients may require in order to make an informed assessment of the Company’s prospects. You should conduct your own investigation and perform your own analysis in order to satisfy yourself as to the accuracy and completeness of the information, statements and opinions contained in this presentation before making any investment decision.

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Our company

• Australian junior oil and gas explorer

• Listed on Australian Securities exchange ASX: FAR

• Diversified African asset base (9 licences in 3 countries)

• Exposure to both transform margin West Africa and Lamu Basin, Kenya

• Large scale acreage position

• 5bn boe prospect inventory

• 5 wells in the next 18 months

• Drilling catalysts in adjacent blocks (Anadarko, Apache, BG, Afren in Kenya and African Petroleum in Senegal)

Capital Structure

Capital Structure
Shares on issue	2,499,846,742
Share price (at 11 Feb 2013)	A$0.038
Market capitalisation	A$95M
Cash on hand (at 11 Feb 2013)	A$21.0M
Enterprise value	A$74.5M
Unlisted options	81.25M

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Tembo
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FAR Board

	Nicholas Limb Non-Executive Chairman 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 (previously Flow Energy MD since 2005)	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. 25 years experience in the resources industry.
	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	Chartered 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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Africa : West and East emerging oil and gas provinces

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• 9 exploration licenses in 3 countries

• Drill Kenya L6, Senegal end 2013

• Combined 31,400km[2 ] area

• Data acquisition phase complete, well obligations only

• Combined best estimate unrisked prospective resources 2,425MMboe

• Numerous prospects and leads mapped

• 5 wells in next 18 months[1 ]

• Sinapa field (est 100mmbbls recoverable) to be appraised Q3/4 2013

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SENEGAL
GUINEA-BISSAU
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1Assuming current options are taken up

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• *From RISC Competent Persons Report (CPR) Oct 2010, RPS CPR Jun 2011, Senergy CPR Nov 2011 and excluding Kora estimates

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Offshore East Africa

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• FAR is holder of 2 licences in the heart of the Lamu Basin

• Estimated 100TCF recoverable gas has been discovered in the last two years in Rovuma Basin to south

• Anadarko drilled first offshore exploration well offshore Mozambique March 2010

• 16 offshore wells have been drilled offshore Mozambique and Tanzania since March 2010 and 14 major discoveries have been made, near 100% success rate on drilling

• Success due to availability of high quality 3D seismic

• Prompted bids by Shell and PTTEP for Cove Energy offshore Mozambique

• Drilling of Mbawa well by Apache showed presence of working source rock, highly porous reservoir, presence of gas and evidence for liquids in Lamu Basin, Block L8

• Drilling success seen offshore Mozambique and Tanzania to be tested offshore Kenya by Apache, Anadarko, Afren and BG late in 2012/2013

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Kenya, East Africa

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Large equity positions in a fast emerging oil and gas margin

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Block L6

• FAR operator with 60% interest

• First well to be drilled Q4 2013

• 3D seismic completed and final products due for delivery this month

• Great neighbours!

Block L9

• FAR 30% interest in block

• Operator Ophir Energy

• Ophir and FAR farm down will introduce new drill partner and operator

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Kenya : Prospects and Leads

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Kudu
Updip
Kipini
Chui
Block L6
Chui W
Nyati W Nyati
Kifaru W Kifaru Kiboko
Tembo
L6 3D survey Mbawa
Prospect
Apache 3D survey
Tai
Block L9 L9 3D survey
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Prospect Unrisked prospective resources (oil only MMboe)2 Kifaru1 344 Kifaru W1 325 Tembo1 1,491 Kudu 86 Chui + Chui W 208 Nyati 91 Updip Kipini 25 Nyati W 205 Kiboko 81 Total 2,856	Prospect Unrisked prospective resources (oil only MMboe)2 Kifaru1 344 Kifaru W1 325 Tembo1 1,491 Kudu 86 Chui + Chui W 208 Nyati 91 Updip Kipini 25 Nyati W 205 Kiboko 81 Total 2,856	Prospect Unrisked prospective resources (oil only MMboe)2 Kifaru1 344 Kifaru W1 325 Tembo1 1,491 Kudu 86 Chui + Chui W 208 Nyati 91 Updip Kipini 25 Nyati W 205 Kiboko 81 Total 2,856	Prospect Unrisked prospective resources (oil only MMboe)2 Kifaru1 344 Kifaru W1 325 Tembo1 1,491 Kudu 86 Chui + Chui W 208 Nyati 91 Updip Kipini 25 Nyati W 205 Kiboko 81 Total 2,856
Prospect		Unrisked prospective resources (oil only **MMboe)2 **
**Kifaru1 **		344
**Kifaru W1 **		325
**Tembo1 **		1,491
Kudu		86
Chui + Chui W		208
Nyati		91
Updip Kipini		25
Nyati W		205
Kiboko		81
Total		2,856

• Kifaru, Kifaru W and Tembo mapped on 3D seismic

• Mean Unrisked Prospective Resources of 2,856MMboes (1,713MMboe net to FAR)

• Supported by seeps and DHI’s : working petroleum system

• Drilling L6 Q4 2013

• 3D seismic completed for L9, lead and prospect mapping ongoing

• Acquire additional L9 3D seismic in 2013 and drill with new partner

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1 From FAR modelling on 3D seismic data, subsequent to CPR, oil only case 2 Best estimate 70% gas, 30% oil, by RISC

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Cross section throu h Lamu Basin
g
L6 L8 L9
Tertiary
1000m
Kifaru Shallow Mbawa L9 Prospect
water
Reefs Tembo
sediment 2000m
s Turbidites
Deltaics 3000m
Deep water
sediments
S
1000m
Cretaceous S
S
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3D Prospects

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Nyati
Nyati West
Tembo
Fan
Kifaru
Kiboko
Tembo
Kifaru West
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• Fast track 3D seismic data received in late October 2012

• Three prospects mapped on the fast track 3D seismic:

• Tembo – Tilted fault structural trap with Eocene deltaic sands reservoir

• Kifaru and Kifaru West – Miocene carbonate build-ups.

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Preliminary deterministic volumetrics show very large potential in in all prospects, particularly Tembo.

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The final 3D processing has indicates the presence of flat events which could be hydrocarbon flat spots

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There is significant follow up for each prospect

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3D Prospects

• Flat events in Tembo could be hydrocarbon contacts

• Cross cut by events parallel to the bedding

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Kenya : Community relations

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Locating the Kipini-1 wellhead

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Mark Jenkins addressing a local community along the coast

Community awareness program, coast of Kenya

Collecting data for the Environmental Impact Assessment

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Centre of activity in West Africa

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• FAR Limited has 7 blocks in West Africa , offshore Senegal, Guinea Bissau and the AGC Profond

• Discovery of Jubilee field offshore Ghana by Tullow spearheaded a wave of activity from Ghana to Senegal

• Focus of activity in and around FAR acreage over next 2 years

• Large 2D non-exclusive seismic survey in 2012 from Mauritania to Guinea

• Important well to be drilled by African Petroleum on the Alhamdulilah Prospect that straddles FAR’s Senegal acreage (est 1,000mmbbls recoverable oil from African Petroleum investor update Oct 2012)

• African Petroleum drilling in the Gambia expected late 2013

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Large footprint in the MSGB basin

FAR acreage

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Salt basin Volcanics

Carbonate shelf

Leads and prospects by play type

Basin floor Carbonate shelf “Buried Hill” Base of slope Salt flank Faulted anticline

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SENEGAL
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GAMBIA
SENEGAL
GUINEA BISSAU
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Senegal, West Africa

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FAR in Senegal

• FAR 100%

• Total exploration spend on block US$21M

• Large acreage position 7,490km[2 ] in the Rufisque, Sangomar and Sangomar Deep blocks

• Drilling before Feb 2014

• African Petroleum to drill 500mmbbl Gambian Alhamdillulah Prospect overlapping into FAR’s Sangomar Block in late 2013

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Senegal: Prospects and Leads

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	Play	Sum of mean unrisked recoverable **MMstb1 **
	Buried Hill play	831
	Early Albian	215
	Aptian shelf margin	824
	Base of slope	188
	Late Cretaceous slope fans	1,244
	Salt cored structure	106
	Total	3,500

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1 From FAR modelling on 3D seismic data, subsequent to CPR

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Sene al: Pros ects and leads
g p
Albion “Buried Hills” Play (unrisked prospective resources 831MMstb)
Amplitude
Extraction
Senonian
unconformity
surface
Inline 1356
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Alhamdilullah Prospect (unrisked prospective resources 500MMstb)

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Structural Spill
Possible Fan
2 km
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AGC and Guinea Bissau, West Africa

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SENEGAL
GUINEA BISSAU
AGC
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FAR in Guinea Bissau

• 21.43% paying interest,15% beneficial interest

• Operated by Svenska Petroleum Exploration AB

• Block 2 contains the Sinapa oil discovery (Premier 2004), P50 111mmbbls OIP to be appraised by JV in late 2013

• Shalllow water (60m)

• Exploration well to also be drilled in late 2013/early 2014

• Strong in country social program

FAR in the AGC Profond

• In 2010, FAR farmed in by agreeing to pay 15% of the Kora-1 well for 10% equity interest

• Block operated by Ophir Energy

• JV option to enter second 2 year renewal period Sept 2012, with well commitment

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Timetable of events

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2013 2014
ANARDARKO & AFREN BG
KENYA
Data Processing & Farmout Drill Planning Drilling
L6
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
KENYA
Data Processing & Farmout G&G Drill Planning Drilling
L9
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
AGC
G&G 3D Seismic Data Processing
AGC Profond
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
AFRICAN PETROLEUM
SENEGAL
Farmout Drill Planning Drilling
Sangomar Profond
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
GUINEA BISSAU
G&G Drill Planning Drilling G&G
Blocks 2, 4A & 5A
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
AUSTRALIA
G&G 3D Seismic Data Processing
NW Shelf
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
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This timetable is indicative and final timetable will be determined when government approvals, availability of rigs and seismic vessels is confirmed

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FAR’s African story is ready to unfold

• Drilling mid 2013 offshore Kenya following Anadarko, BG and Afren

• Drilling West Africa in 2013 following African Petroleum drilling

• Large equity positions and hence highly leveraged to success

• Experienced Board and management with strong relationships in Africa

• Strong cash position to take advantage of existing and new opportunities

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