FAR LIMITED — Investor Presentation 2016

Feb 7, 2016

FAR Investor Presentation

February 2016

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FAR snapshot

• Africa focused: Primarily Senegal and Guinea Bissau

• 6[th] Largest pure E&P on ASX: ASX 300 company

• FAN-1 and SNE-1: Major basin opening oil discoveries in Senegal

• SNE Field largest oil discovery for 2014: IHS CERA

• SNE Appraisal drilling ongoing: Successful flow test in SNE-2

• Quality Senegal partners: ConocoPhillips, Cairn Energy, Petrosen

• Cash balance: A$60.7m (31 December 2015), no debt

• Experienced board and team

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FAR market summary

Member of ASX 300 energy index since March 2015

FARJOY (Family Office) is the largest single shareholder with 11%

Capital Structure
ASX Ticker	FAR
Share price (29 Jan 2016)	A$0.074
Market cap (29 Jan 2016)	A$273M
Cash at 31 Dec 2015	A$60.7M

16% Institutional investors

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Top 20 Shareholders
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Substantial Australian private and retail investor base

4.51% 21.80% 39.96% 33.57% Fund Manager Family Office Private Investment Bank

FAR register as at 11 January 2015

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Senegal

• Strong in-country relationships: FAR has been in Senegal since 2006

• Peaceful democracy: been a democracy for 200 years

• Solid growth: 4.7% GDP in 2014

• S&P sovereign credit rating: Senegal rates 'B+/B‘ (stable outlook)

• FAN-1 and SNE-1 oil discoveries: First offshore exploration wells for 40 years

• • FAR farm-out in 2013: US$196M two well carry by Cairn and ConocoPhillips

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

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OFFSHORE SENEGAL PSC

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

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FAN-1 and SNE-1 seismic section/schematic
W E
SNE-1
FAN-1
SNE-2
SNE-3 BEL-1
Buried Hill
Shelf Edge
Fan
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FAN-1 and SNE-1 seismic section/schematic

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FAN-1 oil discovery

• Proved prolific source

• Oil gravity 28-41 degrees API

• Gross oil bearing interval >500m containing discrete oil columns with no oil-water contact (29m net)

• 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

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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-1 oil discovery

• Excellent reservoir average 25%

• porosity

• Oil gravity 32 degrees API

• Gross oil column of 96m (36m net)

• Contingent recoverable resource*

• Low estimate (1C): 240 mmbbls

• Best estimate (2C): 468 mmbbls

• High estimate (3C): 940 mmbbls

• Appraisal program commenced Nov 2015

• Strong potential to get larger

• Estimated Minimum Economic Field Size (MEFS) 200 mmbbls

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*Reference FAR ASX release dated 8 February 2016 best estimate, gross, contingent resources, 100% basis, oil only

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SNE Field appraisal program

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●
●
●
200mmbbls 350mmbbls
400mmbbls
250mmbbls
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• 3 well back to back drilling program

• Commenced Nov 2015

• First well completed (SNE-2)

• Currently preparing for DST of SNE-3

• Prove MEFS of ~200mmbbls

• Test reservoir deliverability from logging, coring and testing

• Test upside potential in SNE

• Test overlying Bellatrix exploration prospect (P50 168mmbbls*)

• Currently ahead of schedule

300mmbbls 600mmbbls

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

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SNE Field appraisal well locations
N BEL-1 SNE-2 SNE-1 SNE-3 S
Bellatrix
Thin sands
Gas cap
Oil column
Blocky sands
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SNE-2 result*

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Gross oil column 103m 216m core collected through reservoir

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●
●
●
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SNE-2 has confirmed “commercial” flow rates from two drill stem tests

• 8,000 bopd from thick sands

• 1,000 bopd from thin sands

Further resource revision

expected : results are expected to support a revision of the SNE contingent resource estimates

200mmbbls 350mmbbls

400mmbbls 250mmbbls

300mmbbls 600mmbbls

*Reference FAR ASX release dated 4 January 2016

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Senegal prospects and leads

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• Estimated 1.5 billion bbls undrilled

• prospective resources*

• Undrilled Buried Hills play to be drilled with Bellatrix well (BEL-1)

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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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Bellatrix exploration prospect

• Buried Hills exploration prospect overlies northern flank of SNE

Bellatrix unrisked prospective resources*

Low estimate 69 mmbbls

• Strong amplitude response, conforms to structure

Best estimate 168 mmbbls

High estimate 356 mmbbls

• FAR estimated chance of discovery at 49%, Operator 80%

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• Follow up potential from several look-a-likes

Bellatrix seismic amplitude response

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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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Expansion of 3D seismic coverage

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●
●
●
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• 2015 3D seismic undertaken by Senegal JV

• FAR Djiffere 3D seismic

• FAR has the option to earn a 75% working interest in Djifferre block

• Processing of data from both surveys now taking place

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

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Development of SNE Field and tie back potential

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77mmbbl []
74mmbbl []
204mmbbl []
141mmbbl []
168mmbbl []
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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18
16 NPV/bbl (US$)
14
12
10
8
6
4
2
0
US$90/bbl @ 2014 costs US$70/bbl@ 10% cost US$50/bbl @ 20% cost
reduction reduction
at FID
NPV/bbl
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Senegal economic models

• Very good PSC terms

• Base planning case: Assumes 330mmbbls (~50mmbbls net to FAR)

• CAPEX $17-26/bbl

• OPEX $5-15/bbl

• US$10 NPV/bbl at US$70/bbl improves to at around US$50/bbl with ~30% capex reduction

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Project IRR (%)
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40%
35%
30%
25%
20%
15%
10%
5%
0%
US$90/bbl @ 2014 costs US$70/bbl @ 10% cost US$50/bbl @ 20% cost
reduction reduction
at FID
IRR
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• SNE likely to be standalone at >=200mmbbls

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Source: Cairn Energy estimates (refer Cairn Energy Capital Markets Day presentation 11/05/2015)

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

Additional information

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Board with significant experience

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Nicholas Limb

Non-Executive Chairman Appointed 2012

Catherine Norman Managing Director Appointed Nov 2011

Ben Clube

Executive Director Appointed 2013

Reg Nelson

Non-Executive Director

Appointed 2015

Albert Brindal

Non-Executive Director Appointed 2007

Geophysicist and investment banker

15 years as MD/Chairman of an ASX listed, international mining company, Australia.

10 years in Financial services with May and Mellor and HSBC. 38 years industry experience in the resources industry.

Geophysicist

28 years experience in the resources industry. 6 years as MD of Flow Energy Limited. 10 years as Managing Director of international oil services company in the UK developing projects in Europe, Africa and the Middle East region.

Geologist and Chartered Accountant

27 years of experience in the resource sector.

Senior Finance Executive BHP Petroleum. Finance Director and Company Secretary of Oilex Ltd prior to joining FAR.

Exploration Geophysicist

45 years of experience in the petroleum and minerals industries.

13 years as Managing Director of Beach Energy plus 10 years as CEO and Executive Director. Recipient of APPEA's Reg Sprigg Gold Medal in 2009 for outstanding services to the Australian oil and gas industry.

Fellow Certified Practising Accountant

Director of the Company since 2007. Broad commercial experience and Chairman of Remuneration Committee.

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Activity schedule to mid 2016

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2016
January February March April May June
DRILLING Option Well 4
3D SEISMIC processing and preliminary interpretation
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• Ocean Rig Athena drill ship

• Major offshore Senegal 3 well drilling and evaluation program commenced end October 2015

• The SNE-2 has been drilled, cored, logged and flow tested ahead of schedule. SNE-3 now drilling, followed by the Bellatrix-1 (BEL-1) exploration/appraisal well

• Drilling and evaluation program is scheduled to be completed by 2Q 2016

• 3D seismic

• Seismic acquisition of 2,603km[2] of 3D survey over FAR’s Sangomar, Sangomar Deep and Rufisque Blocks simultaneous with FAR’s 400km[2] Djiffere 3D survey completed 10 Dec 2015

• Processing underway and final products expected from 3Q 2016

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FAR performance versus ASX 200 energy index

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0.12
0.10
FAR:
0.08
0.06
0.04
0.02
0.00
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
Source: Source: IRESS
FAR S&P ASX 200 Energy Index (rebased) Brent Oil (US$/bbl, rebased)
Share price (A$p.s.)
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FAR: 7.4cps – 14%

ASX 200 Energy: 7,511 -35%

Brent oil: US$35.25 -29%

From 1 Jan 2015 to 29 Jan 2016, FAR has outperformed the S&P ASX 200 Energy Index, and the Brent oil price

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FAR performance versus African focused peers

0.12 0.10 0.08 0.06 0.04 0.02 - 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 FAR Brent Oil (US$/bbl) Cairn Energy Tullow Oil Kosmos Energy Ophir Energy

FAR (13.6%) Cairn Energy (20.3%) Ophir Energy (37.0%) Brent Oil (US$/bbl) (37.6%) Kosmos Energy (45.5%) Tullow Oil (58.5%)

Source: Source: IRESS

From 1 Jan 2015 to 29 Jan 2016, FAR has outperformed African exploration peers

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FAR is a leading Australian E&P company

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Australian Mid Cap E&P
Market capitalisation in A$m
600
500
400
300
200
100
0
BPT KAR FAR DLS AWE SXY HZN CVN
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Source: ASX data as at 25 January 2016 (excludes Woodside, Oil Search and Santos)

FAR is the 6th largest pure E&P company listed on the Australian stock exchange (FAR.ASX) and it is included in the S&P / ASX 300 index

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SNE contingent resource upgrade

Independent Resources Report completed by RISC for FAR’s SNE oil discovery, offshore Senegal*

• This supports a 42% increase in the gross, best estimate, recoverable SNE contingent resource to 468 MMstb (prior 330 MMstb). FAR net 70 MMstb (prior 50 MMstb)

• A significant 60% increase in the SNE gross, low estimate, recoverable contingent resource to 240 MMstb (prior 150 MMstb) gives FAR increasing confidence that the SNE ● reservoirs are of such a scale and extent to justify a significant commercial development

Summaryof Oil Contingent Resources(MMstb)	Summaryof Oil Contingent Resources(MMstb)	Summaryof Oil Contingent Resources(MMstb)	Summaryof Oil Contingent Resources(MMstb)	Summaryof Oil Contingent Resources(MMstb)	Summaryof Oil Contingent Resources(MMstb)	●
			Gross			Net Attributable
		1C	2C	3C	1C	2C	3C
SNE Discovery		240	468	940	36	● 70	141

200mmbbls 350mmbbls This report is an independent review of the SNE oil field resource estimates commissioned by FAR for its own purposes, and this has not 400mmbbls been undertaken on behalf of the Senegal Joint Venture. 250mmbbls

300mmbbls

600mmbbls

*Reference FAR ASX release dated 8 Feb 2015

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Senior management

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Catherine Norman

Managing Director

BSC (geophysics), AICD

Ben Clube

Chief Operating Officer, Executive Director

BSC (geology), AICD, AIPN

Gordon Ramsay

Executive General Manager, Business Development

BSC (geophysics), MBA,GAICD

Pete Thiessen

Chief Financial Officer

BA (accounting), MICA

Peter Nicholls

Exploration Manager

BSC (geophysics)

Jon Keall

Chief Geoscientist

MSC (geology)

Over 20 years experience in the mineral and oil & gas exploration industry, having held executive positions both in Australia and in the UK. Cath has carried out operating assignments in Europe, Africa, the Middle East and Australia. Cath is a geophysicist who has been Managing Director of FAR since Nov 2011 and previously served as the Managing Director of Flow Energy for 6 years.

Over 20 years experience as a finance executive in the upstream petroleum industry. He has spent the majority of his career at BHP Billiton Petroleum and held roles across the full life cycle of exploration, development and operations. Ben has extensive experience capturing and implementing international projects. Ben is an associate of the Institute of Chartered Accountants of England and Wales.

Over 30 years commercial and technical experience including corporate finance, advisory and research roles in investment banking, as well as being responsible for the discovery of several oil and gas fields in the oil & gas industry. Rated Australia's No. 1 energy equity research analyst at UBS and Salomon Smith Barney (CitiGroup). Gordon began his career at Gulf Canada Resources (Gulf Oil) prior to being recruited to Australia by BHP Billiton Petroleum as a senior exploration geophysicist.

Over 15 years experience as a Chartered Accountant. Pete has previously contracted independently to the mining and exploration industry and more recently was the CFO and Company Secretary of Flow Energy Limited. Prior to that he was a Client Director with Deloitte global accounting and professional service firm. Pete is a member of the Institute of Chartered Accountants.

Over 30 years experience in oil and gas exploration and development projects with BHP Billiton Petroleum, Nexus Energy, Antares, Oil Search and BP Australia. A professional geophysicist with experience in managing exploration teams operating offshore permits and wells. Proven track record of identifying prospective areas, working up prospects, and finding commercial fields.

Over 20 years experience in oil and gas exploration internationally and within Australia. A professional geologist that has worked for BHP Petroleum on many of the petroliferous basins of Australia-Asia and involved in several significant oil and gas discoveries. Experience over the full exploration cycle from identification and capture of new acreage, prospect generation, drilling and discovery of hydrocarbons.

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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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