FAR LIMITED — Investor Presentation 2016

Nov 2, 2016

World class oil discovery offshore Senegal

23[rd] Africa Oil Week

3 November 2016

==> 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 circumstancesafter 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.

2

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

*FAR ASX releases dated 23 Aug 2016, best estimate, gross resources, oil only. Market capitalisation at 30 October 2016

FAR in Senegal

• FAR celebrating 10 years in Senegal in 2016

• Senegal is a peaceful democracy with a stable outlook (S&P sovereign credit rating B+/B) and projected growth rate of 6% next year

• Strong in country relationships

• Farmed down to Cairn Energy and ConocoPhillips for US$196M carry + cash in 2013

• PSC partners: Cairn Energy (Operator) 40%, ConocoPhillips 35%, FAR 15%, Petrosen 10%

• Sale of COP’s Senegal assets subject to partners pre-emptive rights and Senegal Government approval

• President is a petroleum geologist!

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

OFFSHORE SENEGAL PSC

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

==> picture [335 x 358] intentionally omitted <==

*Source: Cairn Energy estimates (Cairn Energy Half Yearly Result 16/08/2016)

4

Hot global E&P geographies

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

==> picture [711 x 367] intentionally omitted <==

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

SNE-3 flow test
----- End of picture text -----

Source: RBC Capital Markets

5

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

No production or activity offshore Senegal

==> picture [380 x 378] intentionally omitted <==

Status in mid-2014

• No offshore production

• No oil exploration drilling offshore Senegal for 40 years

• No deep water drilling ever offshore

• Senegal

6

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

FAN-1 and SNE-1 opened up Senegal

==> picture [380 x 377] intentionally omitted <==

State of discoveries 2 years later

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

• 4 successful SNE appraisal wells

• drilled 2015/6

• 100% drilling success to date

• Cairn Energy (operator) NPV of US$12.5/bbl at project FID (2018/9) and US$70/bbl oil price*

• Major gas discoveries made in 2015/6 offshore Northern Senegal / Southern Mauritania

*Source: Cairn Energy estimates (refer Cairn Energy Half Yearly Result 16/08/2016

7

==> picture [709 x 501] intentionally omitted <==

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

Senegal geology and discovery wells
•
Gross oil-bearing interval of > 500m
•
No water-bearing sands intersected
Shelf Edge play
Fan play
----- End of picture text -----

8

*Reference FAR ASX releases dated 13 Apr 2015 and 23 August 2016, best estimate, gross resources, 100% basis, oil only

Senegal geology and discovery wells

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

• Gross oil-bearing interval of > 500m

• FAN-1 oil discovery (Oct 2014) • No water-bearing sands intersected

• Oil gravity 28-41 degrees API  Gross oil bearing interval >500m  Operator gross oil STOIIP (in place) P90: 250 mmbbls, P50: 950 mmbbls, P10: 2,500 mmbbls

• Proved prolific source  De-risked future shelf drilling Shelf Edge play

• Fan play

9

*Reference FAR ASX releases dated 13 Apr 2015 and 23 August 2016, best estimate, gross resources, 100% basis, oil only

Senegal geology and discovery wells

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

• SNE-1 oil discovery (Nov 2014)  Oil gravity 32 degrees API

• • Gross oil-bearing interval of > 500m Gross oil column 96m

• • No water-bearing sands intersected  FAR gross contingent resource[*] P90 (1C): 348 mmbbls, P50 (2C): 641 mmbbls, P10 (3C): 1,128 mmbbls

• Excellent reservoir

==> picture [609 x 89] intentionally omitted <==

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

Shelf Edge play
Fan play
----- End of picture text -----

10

*Reference FAR ASX releases dated 13 Apr 2015 and 23 August 2016, best estimate, gross resources, 100% basis, oil only

SNE 2015/16 appraisal wells

==> picture [121 x 164] intentionally omitted <==

Objective of wells and progress to date:

• Size of oil pool ✔

• Test reservoir properties and deliverability from logging, coring and testing ✔

• Measure field connectivity

SNE field seismic cross section

==> picture [457 x 28] intentionally omitted <==

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

SNE-4 SNE-3 SNE-1 SNE-2 BEL-1
S N
----- End of picture text -----

==> picture [456 x 227] intentionally omitted <==

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

==> picture [86 x 75] intentionally omitted <==

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

Drilling
Gas
Oil
Reservoir sands
----- End of picture text -----

11

Size of the SNE oil pool

==> picture [148 x 257] intentionally omitted <==

==> picture [159 x 257] intentionally omitted <==

==> picture [185 x 257] intentionally omitted <==

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

==> picture [189 x 257] intentionally omitted <==

Pre-Drill Post discovery RISC audited Latest RISC audited (Oct 2014) (Nov 2014) (April 2016) (August 2016) P90 : 50mmbbls 1C: 150 mmbbls 1C: 277 mmbbls 1C: 348 mmbbls P50 : 154 mmbbls 2C: 330 mmbbls 2C: 561 mmbbls 2C: 641 mmbbls P10 : 350 mmbbls 3C: 670 mmbbls 3C: 1071 mmbbls 3C: 1128 mmbbls

*Reference FAR ASX releases dated 23 August 2016, 13 April 2016, 20 Nov 2014: unrisked contingent resources, 100% basis, oil only RISC is an independent technical expert that reviewed and modified a probabilistic resource evaluation carried out by FAR in accordance with industry standard SPE-PRMS definitions

12

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

Deliverability of oil from SNE

==> picture [293 x 164] intentionally omitted <==

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

SNE-2 flow test
----- End of picture text -----

Main reservoirs flowed at commercially viable rates

SNE-2 lower and upper reservoirs units

• Gross 12m: 8,000 bopd through 3/4“ choke (stabilised constrained flow)

• Gross 15m: 1,000 bopd through 3/8“ choke (unstabilised)

• Flowed higher than estimates

==> picture [310 x 202] intentionally omitted <==

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

3
----- End of picture text -----

SNE-3 tested upper reservoir units

• Gross 15m: 5,400 bopd / 4,000 bopd through a 7/8“ choke (stabilised)

• Gross 20.5m zone: 4,500 bopd co-mingled through a 7/8“ choke (stabilised)

• Flow higher than estimated and confirmed the field is larger to the south

13

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

Connectivity of reservoir units

==> picture [498 x 373] intentionally omitted <==

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

~9km
●
----- End of picture text -----

Two well program planned to commence Q1 2017

Drilling program objectives:

• Improving SNE project definition

• Confirm volumes,

• connectivity and productivity:

• Planned interference

  • program between wells

• Evaluate reservoirs not flow tested to date

Field size ~350km[2]

14

Appraisal results

2015/16 SNE appraisal program completed safely , efficiently and under budget

Each well has confirmed :

• ~100m gross oil column

• High quality 32⁰ API oil

• Correlation of principle reservoir units

Future activity

Measure field connectivity , particularly upper units to help fine tune development concept

Drilling costs coming down!

==> picture [337 x 236] intentionally omitted <==

==> picture [337 x 203] intentionally omitted <==

*Cairn Energy Half Yearly Result 16/08/2016

15

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

Status of SNE development planning

==> picture [458 x 321] intentionally omitted <==

Development planning underway

• Currently in pre-FEED stage (concept select)*

• Low cost environment

==> picture [91 x 49] intentionally omitted <==

Categorisation

Source: Society of Petroleum Engineers, Petroleum Resource Management System

• *Cairn Energy Half Yearly Result 16/08/2016

16

Exploration & production value curve

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

==> picture [713 x 329] intentionally omitted <==

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

SNE
SNE-3 flow test
----- End of picture text -----

Source: RBC Capital Markets

17

SNE development and tie back concept

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

• Standalone FPSO: expansion

• capability for tie-backs

• Plateau production: rate expected to be 140,000 bopd

• Development expenditure:

  • US$12- US$15/bbl* (previous US$17-US$26/bbl)

• Operating expenditure:

<US$10/bbl* (previous US$5-US$15/bbl)

• Breakeven oil price: US$35/bbl*

==> picture [427 x 313] intentionally omitted <==

Reference FAR ASX release dated 24 September 2015 and 4 January 2016

• *Cairn Energy Half Yearly Result 16/08/2016

18

O erator economic develo ment scenario p p

SNE stand alone development (based on Cairn 2C 473 mmbbls)

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

==> picture [696 x 389] intentionally omitted <==

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

US$12.50/bbl
Prior Cairn Energy
----- End of picture text -----

Source: Cairn Energy estimates (refer Cairn Energy Half Yearly Result 16/08/2016 and Cairn Energy Capital Markets Day presentation 11/05/2015)

19

SNE story so FAR

21 months from discovery to statement of commerciality

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

==> picture [746 x 333] intentionally omitted <==

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

|||||||
|---|---|---|---|---|---|
|OCT 2014|NOV 2014|DEC 2014|NOV 2015|JAN 2016|JAN 2016|
|Spud SNE-1|Discovery|Contingent|Spud SNE-2|SNE-2 DST|Spud SNE-3|
|at SNE-1|resource|World class|
|announced|upgrade|flow rates|
|2C 330 mmbbls|
|FEB 2016|MAR 2016|APR 2016|JUN 2016|AUG 2016|From Q4 2016|
|DST Greater|Spud BEL-1 to|Contingent|Demob Ocean|Contingent|Spud of SNE-5|
|than expected|target exploration|resource|Rig Athena|resource|to test upper|
|flow rates|prospect &|upgrade 2C 561|Drillship|upgrade 2C 641|reservoirs &|
|flanks of SNE field|mmbbls|mmbbls|commence JV|
|Contingent|
|development|
|resource|Spud SNE-4 as|Statement on|
|planning|
|upgrade|step out well|commercial|
|2C 468 mmbbls|viability &|
|entering|
|pre-FEED|

----- End of picture text -----

20

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

Scratching the surface of the prospectivity

==> picture [398 x 408] intentionally omitted <==

• Undrilled exploration pro spects

• with >1bn bbls (unrisked) potential

• FAR option over 75% of Djiffere block

• New joint venture 2015 3D seismic shot along trend from SNE

• Preliminary processed seismic products now at hand

*Reference FAR ASX release dated 24 September 2015 and 4 January 2016

21

FAR and its partners are supporting activities that deliver positive, lasting social and economic benefits to Senegal:

• English language training for the energy sector

• The Hunger Project support for a microfinance program

• FAR has sponsored regional soccer competitions through provision of 200 balls

• FAR has provided mosquito nets to rural communities

• FAR has renovated a primary school in Thiess

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

What’s next in Senegal?

• Two firm well program to commence early 2017

• New JV and Djiffere seismic data products

• Decision to progress Djiffere option

• Upgrade to prospective resource inventory

• SNE Project in Pre-FEED, preparing development plan during 2017

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

2016 revealing the prize

2013: Year of farm-out

2014: Year of discovery 2015/2016: Evaluating the SNE Field 100% success rate to date offshore Senegal FAR statement on commerciality 21 months from discovery Undrilled exploration prospects with >1bn bbls potential Possible look-a-likes of SNE in Guinea Bissau FAR committed to finding more elephants lurking under Senegalese waters!

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

Contact us

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

Connect with FAR Limited:

==> picture [171 x 36] intentionally omitted <==

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