FAR LIMITED — Investor Presentation 2017

Sep 13, 2017

Sene al g

The Emergence of a Major New Hydrocarbon Province RIU Good Oil Conference 2017

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Are there elephants lurking under the deep waters of Senegal?

No Deepwater wells ever drilled

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FAR snapshot

• Fifth largest E&P company listed on the ASX

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

• First deepwater wells to be drilled offshore Senegal

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

• 21 months from discovery to statement on commerciality

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

• 2017 ‘African Explorer of the Year’, Oil and Gas Council

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FAR – Australian based, Africa focused

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History of FAR in Senegal

• FAR farmed in for 30% equity in Hunt operated PSC in mid 2006

• Area under licence ~15,000km[2]

• Unproven, deepwater play concepts with large potential

• 2000 sq km 3D seismic Dec 2006

• Focus on the shelf and fan play

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Late Cretaceous upper slope
stacked fans
Early Cretaceous
carbonate shelf
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• Hunt exits Africa leaving FAR with 90% equity

• ….and 100% liability

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Drilling Activity: Regional Context 2012

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Senegal
Guinea
Bissau
Guinea
Kora-1
Ghana Fields
Sierra Leone
Jubilee, Tweneboa
Montserrado-1 Teak, Tano,
Cote d’Ivoire Fields
Enynera
Gazelle, Eland, Kudu
Liberia Bellier, Ibex, Espoir
Panthere
Sabu-1 Venus-1
Narina-1
Mercury-1
Jupiter-1
Cote d’Ivoire Ghana
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Exploration activity progressed to the west from Ghana and Cote d’Ivoire but success rates decreased and activity dried up after dry wells in Guinea and AGC.

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History of FAR in Senegal

• Early 2012, FAR rebranded, acquires new management and technical team

• New ideas and play concepts developed including deeper basinal targets

• Lupalupa prospect developed in Albian above the Aptian carbonates

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Lupalupa Prospect: TWT

Lupalupa

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Shallow channelling disguised the Lupalupa (SNE) structure in two way time

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Lupalupa Prospect: PSDM

Lupalupa

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Structure is evident on later processing (prestack depth migration). Amplitude conformance to structure.

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FAR in Sene al g

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

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Hunt Oil FAR Cairn
Operator Operator Operator
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FAN-1 Drilling 2014

FAN-1 Time v’s Depth Curve

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SNE North-1 Operations: 2017

• The difference a state of the art rig and local knowledge can make.

• Spudded 17[th] July 2017 in 877m water

• Reached 2837mDRT T.D. 26[th] July 2017

• 9 days from spud to TD

• Well completed in 26 days at USD $21.0m including extra wireline logging to collect Geomechanical Data for SNE development

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FAN-1 discovery well

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FAN-1 oil discovery (Oct 2014)
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• 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

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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

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SNE Field geological setting and discovery well
SNE-1 oil discovery (Nov 2014)
•
Oil gravity 32 degrees API
•
Gross oil column 96m
• FAR gross contingent resource []
P90 (1C): 348 mmbbls,
P50 (2C): 641 mmbbls,
P10 (3C): 1,128 mmbbls
•
Excellent reservoir rocks in 2 main
families: lower and upper reservoir sands
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

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 release dated 23 August 2016, 13 April 2016: 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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Perth

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SNE Appraisal results

• All appraisal wells proved approximately 100m gross oil column

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• MEFS passed: 2C resource 641 mmbbls

• Appraisal drilling completed

• SNE-5 & SNE-6 tested upper sands units (S480 and S460 reservoirs). Confirmed good reservoir properties.

• Lower reservoir units intersected in oil column in the west – excellent reservoir in VR-1

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Schematic cross
section
through SNE Field
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SNE Field at S460
reservoir level
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Deliverabilit and connectivit of reservoirs y y

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and connectivit of reservoirs
y y
DST’s conducted on SNE-2, SNE-3, SNE-5, SNE-6
Pressure gauges installed in SNE-3 and SNE-5
Lower reservoirs flowed at world class rates (SNE-2)
Strong flow rates and successful interference test proves
deliverability and connectivity of upper reservoirs
SNE-5
SNE-4 SNE-6 SNE-3 SNE-1 SNE-2 BEL-1
S N
Drilling
Gas
Oil
Reservoir sands
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• DST’s conducted on SNE-2, SNE-3, SNE-5, SNE-6

• Pressure gauges installed in SNE-3 and SNE-5

• Lower reservoirs flowed at world class rates (SNE-2)

• Strong flow rates and successful interference test proves deliverability and connectivity of upper reservoirs

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Interference Testin g

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SNE-6 SNE-5
S480
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• Successful interference test supports higher recovery factors for the field. This will be incorporated in future resource updates

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Looking forward to development of SNE

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• SNE is expected to be a staged development using a standalone FPSO, with expansion capability for satellite tiebacks

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Operator Numbers

• First oil anticipated in 2021-2023, with plateau gross production of 75-125kbopd*

• Development expenditure: US$13US$15/bbl

• Operating expenditure: US$12-14/bbl (including FPSO lease costs)

• NPV/bbl : US$10.00/bbl[*] (at FID, US$70/bbl oil price, 2C 563mmbbls)

FAR Phase 1 development concept Refer to FAR ASX releases dated 24 September 2015 and 4 January 2016

• Estimated breakeven oil price <US$35/bbl*

*Cairn Energy Half Yearly Result 22/08/2017

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Regional oil and gas discoveries (2013)

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2013 – No deep water drilling offshore Senegal

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Regional oil and gas discoveries (2017)

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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. So far, no dry wells.

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2017 Exploration Drilling

VR-1 drilled as appraisal well with a deeper exploration objective in Aptian carbonates.

• Oil shows but reservoir poorly developed

FAN South-1 drilled as second exploration well in the basin.

• Recovered 31 degree API oil from Early Cretaceous reservoir

• Integrating results with FAN-1 data

SNE North-1 drilled to the north of SNE Field

• Discovered multiple stacked hydrocarbon columns that are separate to SNE

• Oil and condensate in S400 reservoirs

• Oil in S500 reservoir below SNE OWC

• Opened up additional play levels for future exploration

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Sangomar Profond Block: Spica Prospect

Single continuous oil and gas column Multiple oil and gas columns

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SNE SNE North
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Spica Prospect

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SNE North-1
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Growing FAR’s portfolio: The Gambia

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• Area identified by FAR as part of regional studies in 2013 & 2014

• Extended negotiations continued through 2016

• Purchased Polarcus 3D in October 2016. Confirmed the Sama prospect

• FAR Farmed in to A2 and A5 on 28 March 2017

• 80% equity and operator

THE GAMBIA

Farm-in to 80% interest with operator rights Erin Energy 20% partner

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Extension of the SNE shelf edge trend

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• On trend and adjacent to SNE field – same play type

• Sama prospect defined on 3D seismic:

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Senegal
Gambia
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• Access to same, prolific source kitchen as SNE

• Same upper/400 series reservoirs as SNE

• Thickening of 400 series sands to the south

• Highly prospective, with a high chance of success

• Prospect reservoirs penetrated by 10 wells in RSSD

• drilling program

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Blocks A2 and A5 prospectivity

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• Sama prospect defined on 3D seismic approximately 500mmbbls recoverable*

• 1,504km2 3D seismic data acquired in 2015

• Seismic reprocessing planned before drilling in 2018

*Gross, unrisked, recoverable, best estimate of prospective resources, oil only

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Strategic Alliance

• Area of Mutual interest agreement with CNOOC

• Covering the designated area offshore Senegal and The Gambia

• CNOOC one of the largest independent oil and gas producers in the world

• Complementary skills enhance FAR and CNOOC ability to secure additional acreage

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Community & social programs

Investing in education & training, enterprise & community development programs through our Senegal joint venture

Renovated a primary school in the regional city of Thiess

Sponsored regional soccer competitions through provision of 200 balls and uniforms

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Moving forward in 2017

• 2013: Year of farmout

• 2014: Year of discovery

• 2015-2017: Appraisal of the SNE Field

• 2017-2018 : Development planning and studies

• 2018-2021 : Engineering, financing & construction

• 2021-23 : First oil from Phase 1 SNE development

• 100% success rate to date offshore Senegal

• Seeking drill partner for The Gambia

• Continuing exploration in Guinea Bissau

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The elephant is emerging…

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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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