FAR LIMITED — Investor Presentation 2016

Mar 15, 2016

The world’s largest oil discover 2014 y

Melbourne Mining Club Cutting Edge Series 15 March 2016

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FAR snapshot

• Two major basin opening oil discoveries in Senegal in 2014

• SNE Field largest global oil find since discovery in 2014

• SNE Appraisal drilling commenced 2015

• Quality partners in Senegal discoveries: ConocoPhillips, Cairn Energy, Petrosen

• Fifth largest pure E&P on ASX (at 14 Mar 2016)

• Market capitalization A$440M (at 14 Mar 2016)

• Cash balance: A$60.7M (31 Dec 2015)

• Experienced team and board

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FAR relative performance

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FAR:
0.13 12.0cps
+40%
0.12 Ocean rig
Athena
0.11 contracted
for 3 firm
SNE
wells
0.10 appraisal
drilling
0.09 commences
0.08
Brent oil:
0.07 US$39.70
(31%)
0.06
ASX 200
0.05
Energy:
7,960 (31%)
0.04
0.03
Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 Mar-16
FAR S&P ASX 200 Energy Index (rebased) Brent Oil (US$/bbl, rebased)
Share price (A$p.s.)
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Source: Source: IRESS, trading data as at 14-March 2016

FAR has outperformed its peer group, the S&P ASX 200 Energy Index, and the Brent oil price (1 Jan 15 – 14 Mar 16)

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SNE Oil field footprint > 300 km[2 ]

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Senegal

• Strong in-country relationships

• Peaceful democracy

• Solid growth: 4.7% GDP in 2014

• S&P sovereign credit rating 'B+/B‘

• First offshore exploration wells for 40 years and first in deep water

• FAR farm-out in 2013 for US$196M carry

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

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OFFSHORE SENEGAL Production Sharing Contract (PSC) FAR: 15% working interest, 16.7% paying interest

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Senegal prospects and leads

• Contract area 7,490 km[2 ]

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• Over 1 billion barrels of P50

prospective resources yet to be drilled*

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

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Geological setting

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

FAN-1 Discovery

W

FAN-1

SNE-2 SNE-1 – FAN-1 well drilled first SNE-3 BEL-1

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– 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

10km

• ~~De-risk~~ ed future shelf drilling

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SNE-1 Discovery

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W
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E
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FAN-1 SNE-1
SNE Field
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• Result announced Nov 2014

• Largest oil discovery for 2014

– Has not been surpassed to date

• 10km ~~–~~ ~~Over~~ 300 km[2] footprint

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SNE-1 oil discovery

• Results announced Nov 2014

• Excellent reservoir

• Oil gravity 32 degrees API

• Gross oil column of 96m (36m net)

• Contingent recoverable resource*

• P90 (1C): 150 mmbbls

• P50 (2C): 330 mmbbls

• P10 (3C): 670 mmbbls

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

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SNE Field: Contingent resources updated

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Nov 2014

Feb 2016

P90 (1C): 150 mmbbls P50 (2C): 330 mmbbls P10 (3C): 670 mmbbls

P90 (1C): 240 mmbbls (+60%) P50 (2C): 468 mmbbls (+40%) P10 (3C): 940 mmbbls (+40%)

*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 appraisal well locations

: Objective of wells

• Size of oil pool

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

• Plan for measuring field connectivity

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N BEL-1 SNE-2 SNE-1 SNE-3 S
Bellatrix
●
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SNE-2 Appraisal well

• Excellent flow from two

independent drill stem tests (DST)

• Gross 12m zone: 8,000 bopd stabilised and constrained, interpreted flow > 10,000 bopd

• Gross 15m zone: 1,000 bopd unstabilised

• Flow considerably greater than prognosis

• Confirmed commercially viable flow rates

• 32 degrees API

• Gross oil column of 103m

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SNE-3 Appraisal well

• Excellent flow from two drill stem

• tests (DST)

• Gross 15m zone: 5,400 bopd max and 4,000 bopd stabilised

• Increased to gross 20.5m zone: 4,500 bopd stabilised

• Flow greater than prognosis

• Confirmed commercially viable flow rates

• 32 degrees API

• Gross oil column of 101m

• Units shallow to prognosis: field larger to the south

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Bellatrix exploration prospect

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• Strong seismic amplitude response

• Overlies SNE Field

• Chance of discovery 49%

• Follow up potential from several look-a-likes

• Prospective resource*

• Low estimate : 69 mmbbls

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• Best estimate: 168 mmbbls

• High estimate: 356 mmbbls

Bellatrix seismic amplitude response

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

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Development and tie back concept

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77mmbbl [ ]
74mmbbl [ ]
204mmbbl [ ]
141mmbbl [ ]
Tie back 168mmbbl [ ]
radius
101mmbbl [ ]
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*Reference FAR ASX releases dated 13 Apr 2015 best estimate, gross, unrisked prospective resources, 100% basis, oil only

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Senegal economics

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• Excellent PSC terms

• Minimum Economic Field Size (MEFS) approx 200mmbbls

• CAPEX coming down

• NPV/bbl of US$10 at US$50/bbl oil price and reduced CAPEX*

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• Estimated first oil 2021

*Reference Cairn Energy Capital Markets Day 2015/6

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Capturing more shelf edge exposure

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• New 3D seismic acquired 2015

• FAR bought option over neighbouring Djiffere permit

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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 offshore Senegal

• Undrilled exploration prospects with >1bn bbls potential

• Possible lookalikes of SNE in FAR’s Guinea Bissau acreage

• 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

www.far.com.au

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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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