FAR LIMITED — Investor Presentation 2016

Sep 13, 2016

World class oil discovery offshore Senegal

RIU Good Oil Conference 14 September 2016

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*FAR ASX releases dated 23 Aug 2016, best estimate, gross resources, oil only. Cash at 30 Jun 2016. Market capitalisation at 13 Sept 2016

FAR in Senegal

• FAR celebrating 10 years in Senegal in 2016

• Western most tip of Africa, capital Dakar, population 14 million

• Peaceful democracy with a stable outlook (S&P sovereign credit rating B+/B)

• 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%

• President is petroleum geologist!

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

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World hot spot for oil and gas discovery

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• Status of offshore fields in mid 2014

• No oil exploration drilling offshore Senegal for 40 years

• No deepwater drilling ever offshore Senegal

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World hot spot for oil and gas discovery

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• Mid 2016 update

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

• 4 successful SNE appraisal wells drilled 2015/16

• 100% drilling success to date

• Cairn Energy (operator) NPV of US$12.75/bbl at project FID (2018/19) and US$70/bbl oil price*

• Major gas discoveries made in 2015/16 offshore N Senegal/S Mauritania

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

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Senegal geological setting

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W FAN-1 SNE-2 SNE-1 SNE-3 BEL-1 E
Buried Hills play
Shelf Edge play
Fan play
0 10
km
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FAN-1 Discovery

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FAN-1 SNE-2 SNE-1 SNE-3 BEL-1 E

– Results announced 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 – De-risked future shelf drilling 0 10

km

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SNE-1 Discovery

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FAN-1 SNE-2 SNE-1 SNE-3 BEL-1 E
SNE Field
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W
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– Result announced Nov 2014 – Oil gravity 32 degrees API – Gross oil column 96m – FAR contingent resources P90 (1C): 348 mmbbls P50 (2C): 641 mmbbls 0 10P10 (3C): 1128 mmbbls

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km
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– Approximately 350 km[2] footprint

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*Reference FAR ASX releases 23 August 2016, best estimate, gross resources, 100% basis, oil only

SNE appraisal program

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: Objective of wells

• Size of oil pool

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

• Measure field connectivity

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Drilling Oil Traps Flow tested zones

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Size of the SNE oil pool

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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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200mmbbls 350mmbbls 400mmbbls 250mmbbls Flow test SNE-2 300mmbbls 600mmbbls

250mmbbls

300mmbbls

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Connectivity

Two well program planned to commence November 2016

Drilling program objectives:

• Improving SNE project definition

• Confirm volumes, connectivity and productivity:

• Planned interference program between wells

• Evaluate reservoirs not flow tested to date

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●
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Field size ~350km[2]

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Appraisal program to date

• Size of oil pool ✔

• Test reservoir properties and deliverability ✔

• Measure field connectivity

• Each well has confirmed :

• ~100m gross oil column

• High quality 32⁰ API oil

• Correlation of principal reservoir units

• Program completed safely , efficiently

• and under budget

• Costs coming down!

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*Cairn Energy Half Yearly Result 16/08/2016

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Scratching the surface of the prospectivity

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• Undrilled exploration prospects 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 and final products arriving Q3

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

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Status of SNE development planning

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Development planning underway

Currently in pre-FEED stage (concept select) * Low cost environment

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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

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• 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*

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

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

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O erator economic develo ment scenario p p

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

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US$12.50/bbl
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

21 months from discovery to statement of commerciality

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|||||||||
|---|---|---|---|---|---|---|---|
|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|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|

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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

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What’s next in Senegal?

• Two firm well program to commence November

• New JV and Djiffere seismic data products

• Decision to progress Djiffere option

• Upgrade to prospective resource inventory

• Project in Pre-FEED, building development plan for 2017

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2016 revealing the prize

2013: Year of farmout

2014: Year of discovery 2015/2016: Evaluating the SNE Field 100% success rate to date offshore Senegal 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!

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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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