FAR LIMITED — Investor Presentation 2016

Jul 20, 2016

FAR Ltd: Breakthrough Company of the Year

Noosa Mining & Exploration Conference 21-22 July 2016

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FAR market overview

Share Register

Market data (15 July 2016)

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ASX Ticker FAR Retail 46%
Share price A$0.08
Cash [] (excludes $60m raised) $31.7m
Market cap A$345M
Average broker rating / target Buy, A$0.15
Cash balance as at 31 March 2016
Share price performance
0.15 7 Oct 14: FAN-1 oil discovery
10 Nov 14: SNE-1 oil discovery
0.13
0.11
FAR: $0.077
0.09
+103%
0.07
BRENT OIL: A$62.7/bbl
(45%)
0.05
ASX 200 Energy: 8,387
0.03
(42%)
0.01
Aug-14 Oct-14 Dec-14 Feb-15 Apr-15 Jun-15 Aug-15 Oct-15 Dec-15 Feb-16 Apr-16 Jun-16
FAR ASX 200 Energy (rebased) Brent oil (A$, rebased)
Share price (A$p.s.)
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Retail 46% Institutional 24% High Net Worth (>500k) 22% Investment bank 5% Management 2%

Source: CapitalIQ; IRESS; trading data as at 15-Jul-16

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Senegal

• FAR in Senegal since 2006

• FAR farm-out in 2013 of US$196M for initial two well carry

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

• 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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Regional oil and gas discoveries (2012)

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• Regional exploration

success close to Senegal

• Guinea Bissau: oil at Sinapa and Dome Flore (heavy oil)

• Mauritania: oil at Chinguetti (on production) plus other gas discoveries

• No commercial discoveries offshore Senegal

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Regional oil and gas discoveries (2016)

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• FAN-1 and SNE-1 oil

discoveries have made Senegal the world’s top location for exploration

• FAN-1 proved up a prolific oil source and a gross oil bearing interval of >500m

• SNE is ranked by IHS CERA as the largest global discovery in 2014

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Senegal schematic section
•
Gross oil-bearing interval of > 500m
•
No water-bearing sands intersected
Shelf Edge play
Fan play
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FAN-1 oil discovery (October 2014)

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• Proved prolific source

• 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 oil migration model up dip

• De-risked future shelf drilling

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

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SNE-1 oil discovery (November 2014)

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• Excellent reservoir

• Oil gravity 32 degrees API

• Gross oil column of 96m

• Contingent recoverable resource[*]

• P90 (1C): 277 mmbbls

• P50 (2C): 561 mmbbls

• P10 (3C): 1071 mmbbls

• Four well field appraisal program commenced November 2015

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

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SNE appraisal well locations

Objective of wells and progress to date:

• Size of oil pool ✔

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

• Measure field connectivity

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SNE field seismic cross section BEL-1 SNE-2 SNE-1 SNE-3SNE-4
N S
Drilling
Oil Traps
●
? Flow tested
? zones
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SNE resource growth

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Pre-Drill (Oct 2014) Post discovery (Nov 2014) P90 : 50mmbbls 1C: 150 mmbbls P50 : 154 mmbbls 2C: 330 mmbbls P10 : 350 mmbbls 3C: 670 mmbbls

Latest RISC audited (April 2016) 1C: 277 mmbbls 2C: 561 mmbbls 3C: 1071 mmbbls

*Reference FAR ASX releases dated 13 Apr 2015, 8 Feb 2016: best estimate, gross, unrisked prospective resources, 100% basis, oil only

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SNE footprint ~350km[2] (135 square miles)

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Source: Google earth, FAR

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SNE-2 & SNE-3 flow test results

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Flow tests have confirmed reservoir quality and ability to flow at commercial rates

SNE-2 lower and upper reservoirs units

• Gross 12m: 8,000 bopd stabilised

• Gross 15m: 1,000 bopd unstabilised

• Flowed higher than estimates

SNE-3 tested upper reservoir units

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• Gross 15m: 5,400 bopd / 4,000 bopd stabilised

• Gross 20.5m zone: 4,500 bopd stabilised

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

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SNE-2 oil flow test
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SNE field outline and well locations

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SNE development and tie back concept

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• Standalone FPSO

• with expansion capability for satellite tie-backs

• Subsea production gas injection and water injection wells

• First oil anticipated from 2021[*]

• *Reference FAR ASX release dated 24 September 2015 and 4 January 2016, Cairn Energy PLC

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Capturing more shelf edge exposure

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Senegal JV focussed on the SNE shelf trend play and FAR is expanding the footprint into Djiffere

• Undrilled Senegal exploration prospects with >1bn bbls potential

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

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

• Final products due Q3/Q4

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

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Woodside transaction with ConocoPhillips

Woodside has entered into a conditional agreement to acquire ConocoPhillips 35% interests in Senegal for US$430m

FAR has been notified of its right to pre-empt by ConocoPhillips

FAR is reviewing the proposal to fully understand the potential transaction

Woodside has endorsed FAR’s view that:

• SNE is a world class asset and one of the largest discoveries since 2014

• SNE appraisal work has proven up high quality resources

• There is a clear line of sight to near term oil production

• Senegal is underexplored and is a highly prospective emerging oil province

*Reference: Woodside ASX Announcement 14 July 2016

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FAR value adding activity

• Update of FAR’s SNE contingent resources (new BEL-1, SNE-4 and core data)

• FAR statement on SNE commerciality

• Update on Senegal prospective exploration resources, including Djiffere

• Drilling and evaluation activities expected to resume offshore Senegal in H2 2016

• Preparing for Senegal PSC declaration of commerciality (DOC)

• Commencing pre-engineering work for SNE field anchor development

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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 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.

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