FAR LIMITED — Investor Presentation 2015

Mar 1, 2015

An outstanding African success story

Investor update presentation March 2015

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Capital Structure
ASX Ticker	FAR
Shares on issue	3,126,808,427
Share price(27 Feb 2015)	A$0.092
Market capitalisation(27 Feb 2015)	A$288M

*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 Share price performance relative to sector

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500 160
Market Cap A$269m based
on closing (31-Dec-14) share
400 140 price of 8.6cps
+169% yoy
300 120
200 100
100 80
2 3 4 Brent Oil price A$70.5/bbl
-43% yoy
1
0 60
1-Jan-14 1-Apr-14 1-Jul-14 1-Oct-14 31-Dec-14
Ref. Date Event
1 17-Apr-14 Commenced drilling of FAN-1 well, offshore Senegal
2 27-Aug-14 Announced that oil samples were recovered in FAN-1 well, evidencing a working petroleum system across block
3 7-Oct-14 Announced FAN-1 exploration well had discovered 500 metre gross oil bearing interval with 950mmbbls of oil in place on a P50 basis
4 10-Nov-14 Announced SNE-1 exploration well had discovered 95 metre gross oil bearing column with preliminary contingent resource estimate of P50 330mmbbls
Brent Oil Price (A$/bbl)
FAR market capitalisation (A$m)
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Sources: IRESS, Capital IQ

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FAR Liquidity relative to industry peers

FAR’s liquidity has substantially improved from mid 2014, supported by the discoveries, news flow and enhanced broker coverage

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1.1%
1.0%
FAR: 0.94%
0.9%
0.8%
0.7%
0.6%
Karoon: 0.56%
Sundance: 0.53%
0.5%
Drillsearch: 0.49%
0.4% Senex: 0.37%
0.3%
0.2% Horizon: 0.19%
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
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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

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FAR’s prospects offshore Senegal

Two carried exploration wells offshore Senegal First offshore drilling for 40 years and first ever deepwater wells Success in both exploration wells Derisked large inventory of prospects

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Senegal

• Stable democracy: 196 years

• Peaceful country

• Capital Dakar

• Population ~14M

• FAR in Senegal since 2008

• FAR enjoys good standing with the Government, Petrosen and other stakeholders in Senegal

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• FAR was operator with 90% equity until August 2013

• President is a Petroleum Geologist!

Photos courtesy of Cairn Energy

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Senegal

• Discoveries in both in FAN-1 and SNE-1 wells

• FAR 15% interest

• Permit area of 7,000 km[2 ]

• Partners are Cairn Energy (Operator:40%), ConocoPhillips (35%) and Petrosen (10%)

• FAR carried through first US$196M drilling costs and US$10M in cash received

• 3.5 billion barrel[* ] follow up potential

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RUFISQUE, SANGOMAR & SANGOMAR DEEP OFFSHORE 16.7% paying interest, 15% beneficial interest Operator: Cairn Energy PLC

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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

• Deepwater fan (FAN-1) well and shelf edge (SNE-1) well drilled 2014

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• Two discoveries

• 3.5 billion barrel[* ] follow up potential in mapped prospects

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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 schematic

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Senegal: FAN-1 well discovery

• 500m gross oil interval

• 29m net oil interval

Pre-drill prospective resources: FAN-1*	Pre-drill prospective resources: FAN-1*
Upper fan(North Canyonprospect)	304 mmbbls
Lower fan(Beer Prospect)	632 mmbbls
Total	936 mmbbls
Total net to FAR	140 mmbbls

• 28[o] – 41[o] API oil

• No oil/water contact encountered

• STOOIP P50 950mmbbls[** ]

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FAN-1
West East
Main objectives
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• *From FAR internal prospective resources 27 Feb 2013, best estimate, gross, unrisked prospective resources, 100% basis, oil only

• ** From Operator estimate of STOOIP released to LSE and FAR ASX release 7 October 2014

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Senegal: SNE-1 well discovery

• Discovery in Albian sands prospect

SNE-1 gross contingent resources	SNE-1 gross contingent resources
Low estimate	150 mmbbls
Best estimate	330 mmbbls
High estimate	670 mmbbls

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• 96m gross oil column

• 36m net oil column

• Excellent reservoir quality

• 32[o] API oil

• Twice the size of the pre-drill best estimate for SNE-1

• Potential for standalone development

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Senegal

• Proven prolific oil generating source rock

• Both FAN-1 and SNE-1 potentially scale for standalone development

• Analysis of both wells continuing

• Evaluation program to be submitted to Government of Senegal end April 2015

• Evaluation drilling to commence Q4 2015

• Fall in the oil price and subsequent fall in rig rates in W Africa will dramatically reduce the cost of drilling for:

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• Evaluation/appraisal of the discoveries

• Further exploration in the block

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FAR stor unfoldin y g

• Significant discoveries on first two wells offshore Senegal

• Significantly derisks remaining prospects in the acreage

• Evaluation program to commence Q4 2015

• A$67M cash end 2014

• Kenya story yet to unfold

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Senegal pre-drill prospective resources

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			Unrisked Best	FAR	Unrisked Best		Risked Best Estimate
			Estimate Prospective	Working	Estimate Prospective	Chance of	Prospective Resources
			Resources	Interest(1)	Resources (net to FAR)	discovery(2)	(net to FAR)	Oil
Prospect	Play	Well	(mmbbl)	(%)	(mmbbl)	(%)	(mmbbl)	(%)
North Canyon & Beer	Slope & Early Fans	FAN-1	936.0	13.7%	128.2	16%	20.5	100%	Post drill best
Lupalupa & Boabab	Albian Shelf edge	SNE-1	645.0	13.7%	88.4	25%	22.1	100% estimate contingent resource from SNE-1
Wells committed to be drilled			1,581.0	13.7%	216.6		42.6	100% alone = 45.21mmbbls net to
Lufti	Buried Hill		203.0	13.7%	27.8	11%	3.1	100%	FAR(3)
Sabar	Buried Hill		304.0	13.7%	41.6	11%	4.6	100%
Lamb-Ji	Buried Hill		136.0	13.7%	18.6	11%	2.0	100%
Ramtou	Buried Hill		58.0	13.7%	7.9	11%	0.9	100%
Sth Canyon	Slope Fans		439.0	13.7%	60.1	11%	6.6	100%
Central Canyon	Slope Fans		612.0	13.7%	83.8	11%	9.2	100%
Alhamdulillah North	Salt anticline		252.0	13.7%	34.5	11%	3.8	100%
Total Prospects and Leads			2,004.0	13.7%	274.5		30.2	100%
Total Senegal			3,585.0	13.7%	491.1		72.8	100%

(1) Assuming Petrosen back-in at 18%, decreasing FAR working interest to 13.7%

(2) Fan and Shelf wells being drilled have assessed chance of discovery per company guidance on 27-Feb-13; Prospects not being drilled have assumed 11% chance of discovery representing bottom end of FAR guidance provided on 27-Feb-13 (11%-38%)

• (3) Refer to FAR ASX announcement on 10-Nov-2014

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Senegal: Global deepwater economics

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In a US$100/bbl oil price environment the exploration prize remains very material. Deepwater also does not necessarily mean lower unit value (especially where oil is discovered). Technical challenges and costs are higher, but explorers benefit from larger field sizes and fiscal terms designed to incentivise risk

Selected notable global discoveries – full field development unit values (US$/boe) (*)

Jubilee oil field

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Source: UBS estimates; WoodMackenzie (*) Full field NPV10 discounted back to the date of discovery

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Senegal: FAN-1 comparison with Jubilee

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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	December 2010	TBC

Jubilee well results

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Source: Tullow Oil plc

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FAR’s prospects in East Africa

Large equity in Kenya’s fast emerging Lamu Basin Free carried through seismic and a well in 2015

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Kenya

• Large acreage position in Lamu Basin

• Farmout completed for onshore L6: total work program ~US$30M

• Interest in two exploration blocks

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

• 24% free carried interest (uncapped) over onshore L6

• 60% interest in offshore L6 pre-farmout

• 30% interest in L9

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BLOCK L6 60% interest offshore 24% interest onshore Operator: FAR Limited

BOCK L9 30% interest Operator: Ophir Energy PLC

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Kenya: Lamu Basin

• Proven oil at both ends of reef play

• Sunbird-1 well in Block 10A

• 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

• Drill ready reef prospects defined on 3D seismic

• Strong interest in farmout

• Further drilling in 2015 by BG, Anadarko, Afren

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BLOCK L6 BOCK L9 60% interest offshore 30% interest 24% interest onshore Operator: Ophir Energy PLC Operator: FAR Limited

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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

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Board with significant experience

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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. 38 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. 28 years experience in the resources industry.

Ben Clube Executive Director and Commercial Manager Appointed 2013

Geologist and Chartered Accountant

27 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 Attorney at law Non-Executive Director Served in the legal departments of two large American oil companies, Penzoil Corporation and Arco. Appointed 1994 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.

Fellow Certified Practising Accountant

Albert Brindal Non-Executive Director Appointed 2007

Director of the Company since 2007. Broad commercial experience and Chairman of Remuneration Committee.

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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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