FAR LIMITED — Investor Presentation 2015

Apr 12, 2015

FAR delivers in Senegal

Investor presentation April 2015

==> picture [148 x 64] intentionally omitted <==

Investment highlights

• First mover advantage with quality committed partners Cairn Energy, ConocoPhillips and Petrosen in a new high potential emerging basin offshore Senegal

• FAN-1 and SNE-1 are new world class oil discoveries that significantly reduce the risk of drilling additional Senegal exploration prospects identified by 3D seismic

• 3 well drilling program starting from 4Q 2015 that will appraise SNE, plus evaluate an attractive near field exploration prospect

• SNE is a low break even field (estimated IRR 10% at US$45/bbl) with attractive fiscal terms and a large resource base that has appraisal upside

• Good cost environment with nearby prospects offering low cost tie-back opportunities and future declining drilling costs

==> picture [148 x 64] intentionally omitted <==

Market summary

• ASX 300 Index. FAR trades on the Australian stock exchange (ASX) and is included in the S&P / ASX 300 index, with potential to enter the S&P / ASX 200 Energy Index

• Relatively high turnover. Average daily turnover is 19M shares over the past six months and 18M shares over the last twelve months

• Strong balance sheet. Net cash at 31 December A$67M (no debt)

• Register . FAR has approximately 11,500 shareholders that are predominantly retail and located in Australia. Farjoy (11%) is the largest shareholder. Institutional investors make up less than 15% of the overall FAR register, but are growing

A mid cap Australian E&P company

Capital Structure
ASX Ticker	FAR
Share price(11 April 2015)	A$0.097
Market capitalisation(11 April 2015)	A$303M
Cash(31 Dec 2014)	A$67M
Average broker rating and price target	Buy, A$0.20

Institutional Investors

==> picture [158 x 152] intentionally omitted <==

----- Start of picture text -----

19%
78%
----- End of picture text -----

Australia Europe Asia North America Rest of the World

FAR register as at 24 February 2015

3

FAR in Africa

• Africa focussed E&P company with its key assets located in West and East Africa with quality partners

• Wide portfolio that comprises a total of eight exploration licences in Senegal (3), Guinea Bissau (3) and Kenya (2)

Senegal New FAN-1 and SNE-1 oil discoveries highlight multi billion barrel potential

Shelf edge area upgraded after SNE result in Senegal. Sinapa oil discovery

Kenya Frontier acreage with large equity positions in a fast emerging oil and gas margin

• Significant African experience by FAR’s board and management team

• Corporate focus on Senegal after making transformational oil discoveries at FAN-1 and SNE-1 in late 2014

Project Senegal	Project Senegal	Asset Rufisque, Sangomar	FAR Paying Interest 16.7%	Beneficial Interest 15.0%	Operator Cairn Energy
		and Sangomar Deep
Kenya		Block L6(offshore)	60%	60%	FAR
		Block L6(onshore)	24%	24%	FAR
		Block L9	30%	30%	Ophir Energy
Guinea-Bissau		Block 2, 4A, 5A	21.43%	15.0%	Svenska

4

Senegal

• Senegal is Africa’s western most country with a population ~14M (Capital Dakar)

• Large offshore PSC area of 7,490 km2 that includes Sangomar, Sangomar Deep and Rufisque

• FAR has been in Senegal since 2006 and was operator with 90% interest until it attracted farm-ins by ConocoPhillips and Cairn for US$196M plus US$10M in cash (2 wells)

• High level of cooperation and support from partners / governing bodies. Senegal has a stable outlook and S&P sovereign credit rating of 'B+/B‘

• Joint venture partners are: FAR 15%, Cairn Energy (Operator 40%), ConocoPhillips (35%) and Petrosen (10%)

==> picture [80 x 81] intentionally omitted <==

RUFISQUE, SANGOMAR & SANGOMAR DEEP OFFSHORE

16.7% paying interest, 15% beneficial interest Operator: Cairn Energy PLC

==> picture [334 x 355] intentionally omitted <==

5

Senegal prospects and leads

==> picture [321 x 342] intentionally omitted <==

==> picture [334 x 342] intentionally omitted <==

6

FAN-1 and SNE-1 seismic section / schematic

==> picture [679 x 439] intentionally omitted <==

----- Start of picture text -----

FAN-1 Well SNE-1 Well
W E
1430m WD 1150m WD
Buried Hills Play
Shelf Edge Play
Slope Fan Play
Source
Kitchen
Oil Migration Oil Traps
----- End of picture text -----

7

FAN-1 oil discovery

FAN-1

• Located approximately 100km offshore in the Sangomar Deep block

• Drilled in 1,427m water depth to a TD of 4,927m

• Discovered high quality light oil in a stratigraphic trap containing a multiple stacked deepwater Cretaceous sand sequence

• Oil gravity 28-41 degrees API

• Gross oil bearing interval >500m with no oil-water contact encountered

• Net oil bearing reservoirs 29m encountered at the base of the well in the Albian aged unit

• Operator estimated gross oil (STOIIP)* in place broadly in line with pre-drill estimates

• P90: 250 mmbbls,

• P50: 950 mmbbls,

• P10: 2,500 mmbbls

• FAR 16.7% paying interest, 15% beneficial interest

*Reference ASX releases dated 27 Feb 2013, 5 Feb 2014, 11 Mar 2014

8

FAN seismic and in place resource

FAN-1

	West				East
				Main objectives
				Operator STOIIP (in place) resource for	FAN-1
				P90	250 mmbbls
				P50	950 mmbbls
				P10	2,500 mmbbls

• FAN is a combined structural and stratigraphic trap in a stacked sequence within an elongate closure with a very large areal extent

9

FAN 3D amplitude section

• 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

• Reprocessed 3D seismic data completed late 2015

==> picture [369 x 362] intentionally omitted <==

10

FAN analogy

• Jubilee was one of the largest worldwide finds of 2007, and the largest find of the entire decade offshore West Africa. The Jubilee discovery was significant, not only because of its size, but also because it opened a new hydrocarbon play within the deep water West Africa transform margin

Jubilee FPSO

Jubilee and FAN-1 comparison	Jubilee and FAN-1 comparison	Jubilee and FAN-1 comparison
	Jubilee	FAN-1
Playtype	Turbidite fan	Turbidite fan
Water depth(m)	1530	1427
Oilgravity (API)	37-38	28-41
Gross oil interval(m)	51 to 270	500+
Net oil reservoir(m)	23 to 95	29
STOOIP(billion bbls)	3	Upto 2.5
Recoverable reserves(mmbbls)	694	TBC
Discoverydate	June 2007	October 2014
Production start date	Dec 2010	TBC

Jubilee well results

==> picture [205 x 115] intentionally omitted <==

==> picture [242 x 324] intentionally omitted <==

Source: Tullow Oil plc

11

SNE-1 oil discovery

SNE-1

• Located SE of FAN-1 approximately 100km offshore in the Sangomar Offshore block

• Drilled in 1,000m water depth to a TD of 3,107m

• Classified as one of the world’s largest oil discoveries in 2014 (IHS CERA)

• Discovered very good sandstone reservoir in a well defined structural trap located in a Cretaceous clastic shelf edge play

• Oil gravity 32 degrees API

• Gross oil column of 95m with a gas cap. Net oil pay 36m

• Contingent resource* double FAR’s P50 pre-drill estimate

• P90: 150 mmbbls,

• P50: 330 mmbbls,

• P10: 670 mmbbls

• FAR 16.7% paying interest, 15% beneficial interest

*Reference ASX releases dated 27 Feb 2013, 5 Feb 2014, 11 Mar 2014, 13 Apr 2015 best estimate, gross, unrisked contingent resources, 100% basis, oil only

12

SNE seismic and schematic

==> picture [94 x 74] intentionally omitted <==

==> picture [509 x 223] intentionally omitted <==

----- Start of picture text -----

N W S E
----- End of picture text -----

==> picture [295 x 231] intentionally omitted <==

13

SNE top reservoir

• Pre-drill estimate 154 mmbbls (gross, best estimate prospective resource)*

• Conformance of amplitude with structure

• Post drill 330 mmbbls (gross, best estimate contingent resource)*

• Audited by ERC-Equipoise

==> picture [118 x 68] intentionally omitted <==

SNE-1 gross contingent resources* Low estimate (1C) 150 mmbbls Best estimate (2C) 330 mmbbls High estimate (3C) 670 mmbbls

==> picture [374 x 388] intentionally omitted <==

----- Start of picture text -----

Pre-drill estimated
field size 154
mmbbls
Post-drill estimated
field size 330
mmbbls
----- End of picture text -----

*Reference ASX releases dated 27 Feb 2013, 5 Feb 2014, 11 Mar 2014, 13 Apr 2015 best estimate, gross, unrisked contingent resources, 100% basis, oil only

14

SNE development concept

==> picture [676 x 305] intentionally omitted <==

• The most likely SNE development concept is expected to be a floating, production, storage and offtake (FPSO ) vessel based on an integrated multi-field development with tie back of satellite fields to the surface processing and infrastructure hub

15

Senegal shelf prospects

• Extensive prospect inventory mapped on 3D seismic

• Two distinct play types on shelf

• The minimum economic field size for a standalone FPSO hub is ~200 mmbbls (Operator estimate)

• Tie-back to hub development: ~75 mmbbls over 25km radius (Operator estimate)

==> picture [421 x 381] intentionally omitted <==

----- Start of picture text -----

77mmbbl
74mmbbl
204mmbbl
141mmbbl
168mmbbl
101mmbbl
----- End of picture text -----

*Reference ASX releases dated 13 Apr 2015 best estimate, gross, unrisked prospective resources, 100% basis, oil only

16

Senegal shelf prospects

==> picture [704 x 396] intentionally omitted <==

----- Start of picture text -----

N S
Bellatrix
SNE oil field
Soleil
Sirius
----- End of picture text -----

17

Senegal prospect inventory*

==> picture [692 x 234] intentionally omitted <==

*Reference ASX release dated 13 Apr 2015 best estimate, gross, unrisked prospective resources, 100% basis, oil only

18

Senegal timetable

2014 2015 2016	2014 2015 2016	2014 2015 2016	2014 2015 2016	2014 2015 2016	2014 2015 2016	2014 2015 2016	2014 2015 2016	2014 2015 2016	2014 2015 2016	2014 2015 2016	2014 2015 2016	2014 2015 2016	2014 2015 2016	2014 2015 2016
	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
Firm 3 wells
Contingent wells
3D seismic acquisition/processing
Declaration of discovery FAR AGM

19

Industry costs are coming down

• Offshore upstream capital costs are expected to decline 12% on average between 2014 and 2016

• Offshore rig day rates dropped significantly

• Cairn stated well costs for appraisal drilling in Senegal at $30-$40M

• Labour pressure is also expected to ease from falling demand

• UBS Cairn Energy research note referring to Senegal:

"Fiscal terms are pragmatic (cost recovery: 75%; contractor share of profit oil: 60-85%; CIT: 30%). Assuming technical costs (capex plus opex) of $30/bbl, in line with analogue fields, the project clears a 10% IRR at $45/bbl. A 20% cost reduction, possible given the easing supply chain, sees this fall to $36/bbl."

==> picture [357 x 351] intentionally omitted <==

Source: Oil Search , IHS Energy

20

Guinea-Bissau

==> picture [316 x 246] intentionally omitted <==

• Three blocks, operator Svenska

• FAR 15% WI, 21.43% PI

• New 3D seismic evaluating SNE look-a-like prospect (Atum)

• Sinapa has a gross 2C contingent resource of 13.4 mmbbls (FAR net 2 mmbbls)*

==> picture [80 x 81] intentionally omitted <==

==> picture [351 x 395] intentionally omitted <==

*Reference ASX releases dated 27 Feb 2013, 5 Feb 2014, 11 Mar 2014, 13 Apr 2015 best estimate, gross, unrisked prospective resources, 100% basis, oil only

21

Kenya

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

• Sunbird-1 well in Block 10A was an oil and gas discovery

• Oil and gas column

• Returned hydrocarbons to surface

• High porosity and permeability

• Maridadi-1 well in L6 has 1000m of oil shows in the core through the reef section

• Milio E&P Ltd farm-in to onshore L6 includes seismic and a future well

• Drill ready prospects on offshore 3D seismic

• Combined unrisked prospective resources for L6: 3.75bn bbls of oil, 10.23 TCF of gas

==> picture [81 x 80] intentionally omitted <==

BLOCK L6

BLOCK L9

60% interest offshore 24% interest onshore Operator: FAR Limited

30% interest Operator: Ophir Energy PLC

==> picture [342 x 344] intentionally omitted <==

----- Start of picture text -----

Maridadi-1
----- End of picture text -----

22

*Reference ASX releases dated 27 Feb 2013, 5 Feb 2014, 11 Mar 2014, 13 Apr 2015 best estimate, gross, unrisked prospective resources, 100% basis, oil only

Australia

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

• Structural and combined structuralstratigraphic leads at proven reservoir levels

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

• A new 3D seismic survey over WA-458-P

==> picture [82 x 82] intentionally omitted <==

WA-458-P OFFSHORE DAMPIER BASIN

100% paying and beneficial interest Operator: FAR Ltd

==> picture [334 x 236] intentionally omitted <==

*Reference ASX releases dated 27 Feb 2013, 5 Feb 2014, 11 Mar 2014, 13 Apr 2015 best estimate, gross, unrisked prospective resources, 100% basis, oil only

23

Appendices

==> picture [148 x 64] intentionally omitted <==

Performance relative to the oil price

• Strong performance in late 2014. The significant FAN-1 and SNE-1 oil discoveries re-rated FAR at the end of 2014, but their importance has been partly offset by a material oil price correction

==> picture [666 x 357] intentionally omitted <==

----- Start of picture text -----

500 150
400 130 FAR Market Cap A$297m
based on closing (31-Mar-
15) share price of 9.5cps
+197% yoy
300 110
200 90
100 70 Brent Oil price A$72.6/bbl
-42% yoy
0 50
1-Jan-14 1-Apr-14 1-Jul-14 1-Oct-14 1-Jan-15
Ref. Date Event
A 17-Apr-14 Commenced drilling of FAN-1 well, offshore Senegal
B 27-Aug-14 Announced that oil samples were recovered in FAN-1 well, evidencing a working petroleum system across block
C 7-Oct-14 Announced FAN-1 exploration well discovered 500 metre gross oil bearing interval with 950mmbbls of oil in place on a P50 basis
D 10-Nov-14 [Announced SNE-1 exploration well discovered 95 metre gross oil bearing column with preliminary contingent resource estimate of P50 ]
330mmbbls
Brent Oil Price (A$/bbl)
FAR market capitalisation (A$m)
----- End of picture text -----

25

Sources: IRESS, Capital IQ

Liquidity relative to Australian industry peers

• Strong trading volumes. FAR’s liquidity has substantially improved from mid 2014, supported by the late 2014 oil discoveries, news flow and enhanced broker coverage

==> picture [651 x 271] intentionally omitted <==

----- Start of picture text -----

1.1%
1.0%
0.9%
0.8%
0.7%
0.6%
0.5%
0.4%
0.3%
0.2%
0.1%
Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14
FAR Karoon Gas Drillsearch Senex Energy Sundance Energy Horizon Oil
(1)
Liquidity
----- End of picture text -----

Sources: IRESS, Capital IQ

Note: (1) Rolling six month average daily volumes traded (eliminates volatility seen in day by day changes) divided by total shares outstanding. We have also excluded the impact of trading halts on liquidity

26

Board with significant experience

==> picture [59 x 81] intentionally omitted <==

==> picture [59 x 82] intentionally omitted <==

==> picture [59 x 82] intentionally omitted <==

==> picture [59 x 81] intentionally omitted <==

==> picture [59 x 81] intentionally omitted <==

Nicholas Limb

Geophysicist and investment banker

Non-Executive Chairman Appointed 2012

15 years as MD/Chairman of an ASX listed, international mining company, Australia. 10 years in Financial services with May and Mellor and HSBC. 38 years industry experience in the resources industry.

Catherine Norman Managing Director Appointed Nov 2011

Geophysicist

28 years experience in the resources industry.

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.

Ben Clube

Geologist and Chartered Accountant

Executive Director and Chief Operating Officer Appointed 2013

27 years of experience in the resource sector.

Senior Finance Executive BHP Petroleum. Finance Director and Company Secretary of Oilex Ltd prior to joining FAR.

Reg Nelson Exploration geophysicist

Non-Executive Director Appointed 2015

38 years of experience in the petroleum and minerals industries. 13 years as Managing Director of Beach Energy Limited. Served as a Councilor of the Australian Petroleum Production and Exploration Association. Fellow Certified Practising Accountant Director of the Company since 2007. Broad commercial experience and Chairman of the Audit Committee

Albert Brindal

Non-Executive Director Appointed 2007

27

• 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

==> picture [148 x 64] intentionally omitted <==

Contact us

Level 17, 530 Collins Street Melbourne VIC 3000 Australia T: +61 3 9618 2550

www.far.com.au

==> picture [148 x 64] intentionally omitted <==

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.

30