FAR LIMITED — Investor Presentation 2016

Oct 17, 2016

SNE - a world class oil field offshore Senegal

Citi's 8th Annual Investment Conference 18 October 2016

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About FAR

• Africa focussed oil company with high potential exploration and appraisal assets

• Fifth largest independent E&P company listed on the ASX

• Basin opening FAN-1 and SNE-1 oil discoveries offshore Senegal

• SNE ranked as world’s largest oil discovery in 2014 by IHS

ASX Ticker	FAR
Share price*	A$0.08
Cash*	A$66.3m
Issued shares	4.46bn
Market capitalisation*	A$357M

*Share price and market capitalisation as at 13 October 2016. Cash balance as at 30 June 2016

• RISC audited SNE field 2C contingent recoverable resource 641 mmbbls* with further upside

• 21 months from discovery to FAR statement on commerciality

• Planning for development in a very low cost environment

• Funded through 16/17 firm work program

• Experienced board and management team with strong relationships in Africa

• 2016 ‘Breakthrough Company of the Year’ by the Oil and Gas Council, Africa

Share Register

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As at July 2016
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Retail 46%
Institutional 24%
High Net Worth 22%
Investment bank 5%
Management 3%
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*Reference FAR ASX release dated 23 August 2016, best estimate, gross resources, 100% basis, oil only

FAR in Senegal

• FAR has been in Senegal since 2006

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

• Farmed down to Cairn Energy and ConocoPhillips in 2013 for US$196m in forward carry plus cash

• Drilled FAN-1 and SNE-1 in 2014

• 6 successful exploration and appraisal wells now drilled

• Progressing towards development of SNE with first production targeted from 2022

• Operator NPV of US$12.5/bbl and unlevered IRR of 38% at project FID and assuming US$70/bbl oil price*

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

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OFFSHORE SENEGAL PSC

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

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

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World hot spot for oil and gas discoveries

2013 – No deep water drilling offshore Senegal 2016 – Offshore oil and gas discoveries

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The basin opening FAN-1 and SNE-1 oil discoveries have made Senegal one of the world’s most attractive locations for exploration. Major gas discoveries have also recently been made north of FAR in Senegal and Mauritanian waters

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Senegal geology and FAR discoveries

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SNE-1 oil discovery (Nov 2014)

• Oil gravity 32 degrees API

• Gross oil column 96m

• • Gross oil-bearing interval of > 500m

• •  FAR gross contingent No water-bearing sands intersected recoverable resource[* ]

  • P90 (1C): 348 mmbbls, P50 (2C): 641 mmbbls, P10 (3C): 1128 mmbbls

• Excellent reservoir

FAN-1 oil discovery (Oct 2014)

• 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 and de-risked future shelf drilling

Shelf Edge play

Fan play

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

SNE field outline and well locations

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~9km

~5km

Each SNE well has confirmed:

• ~100m gross oil column

• High quality 32⁰ API oil

• Presence and

correlation of principle reservoir units

SNE field

area >350 km²

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SNE appraisal program

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Appraisal drilling to date

• Size of oil pool ✔

• Test reservoir properties

• and deliverability from logging, coring and testing ✔

• Program completed safely, efficiently and under budget

Future activity

• 2 firm appraisal wells

• Measure field connectivity

• and deliverability in upper units

Costs coming down!

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Size of the SNE oil field

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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

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Deliverability of oil from SNE

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SNE-2 flow test
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Confirmed reservoir quality and ability to flow at commercial 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

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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

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Future drilling program

New Senegal drilling program to commence late 2016

• New drilling program to consist of two firm appraisal wells over SNE field

• Multiple optional drilling slots

• FAR is fully funded through the proposed firm well program

Drilling program objectives:

• Better define SNE development project

• Confirm volumes, connectivity and productivity:

• Interference program between wells

• Flow test upper reservoirs

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Stena Drillmax
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Scratching the surface of the prospectivity

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• Undrilled exploration prospects with >1bn bbls (unrisked) potential*

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

• New FAR Djiffere 3D seismic earned FAR option over 75% W.I.

• Preliminary processed seismic products now at hand and final products arriving from Q3

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

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Status of SNE anchor project

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SNE project classified by FAR as Development Pending

Planning is now underway to determine the optimum SNE development scenario Currently in pre-FEED stage (concept select)*

Low cost environment

Project to deliver cost reductions (25% lower development well costs from prior operator estimates)*

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Categorisation

Source: Society of Petroleum Engineers, Petroleum Resource Management System

*Cairn Energy Half Yearly Result 16/08/2016

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SNE development and tie back concept

• Standalone FPSO: with expansion capability for satellite tie-backs

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• FAR’s phased development

concept has plateau production of 140,000 bopd and first oil in 2022*

• Development expenditure:

• US$13-$15/bbl*

• Operating expenditure:

• US$12-$14/bbl* (including FPSO lease costs)

• SNE development project to benefit from:

• Cost deflation

• Project optimisation

• Standardisation

*Reference FAR ASX release dated 1 September 2016

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Operator economic development scenario

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

US$12.50/bbl

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

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SNE story so FAR

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21 months from discovery to FAR statement of commerciality

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FAR value adding activity

• Joint Venture pre-FEED studies underway for an SNE anchor development project with scope for phasing

• Optimizing SNE development plan and preparing for submission to Government

• Drilling to resume offshore Senegal late 2016

• Update FAR’s prospective exploration resources offshore Senegal

• Decision to progress FAR’s Djiffere option

• First SNE oil production expected from 2022

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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:

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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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