FAR LIMITED — Investor Presentation 2017

May 24, 2017

A world class oil story

Offshore oil exploration success in Senegal, future development and growth

Africa Independents Forum London 24 May 2017

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1: Market capitalisation at 23 May 2017

FAR in Senegal

• FAR celebrating 10 years in Senegal in 2016

• Introduced Cairn Energy and ConocoPhillips in 2013

• Strong technical team that mapped the prospects and located the wells for the FAN-1 and SNE-1 discoveries

• Drilled 9 successful wells to date

• Key to unlocking Senegal’s offshore oil reserves

• SNE field world’s largest oil discovery in 2014

• Completed appraisal of the SNE Field May 2017

• First oil forecast for 2021

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FAR in Senegal

• JV invested ~ US$800M in three years

• 9 deep water exploration/appraisal wells with a 100% success rate

• 21 months from discovery to statement on commerciality

• SNE field grown to 641mmbbls 2C resource

• Multi-billion dollar deep water development planned

• First oil will be transformational for the Senegal economy and people

• Strong commitment to sustainable social development and capacity building in country

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FAR licences offshore Senegal, The Gambia and Guinea-Bissau

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No production or activity offshore Senegal

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Status in mid-2014

• No offshore production

• No oil exploration drilling offshore Senegal for 40 years

• No deep water drilling ever offshore Senegal

• FAR 90% of RSSD acreage before Cairn and COP farm down

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FAN-1 and SNE-1 opened up Senegal

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Current state of discoveries

• 7 successful SNE appraisal wells drilled over 2015/16/17

• 100% drilling success to date

• Major gas discoveries made in 2015, 2016, 2017

• BP farm-in to Kosmos acreage introduces a large IOC to the basin

• CNOOC farm-in to Impact acreage in AGC March 2017

• Total awarded ROP block May 2017

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Senegal geology and discovery wells
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Gross oil-bearing interval of > 500m
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No water-bearing sands intersected
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

Senegal geology and discovery wells

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• FAN-1 oil discovery (Oct 2014) ➢ Oil gravity 28-41 degrees API ➢ Gross oil bear• Gross oil-bear ing interval of interval 5 > 5 00m • No water-bearing sands intersected

• ➢ Operator gross oil STOIIP (in place)* P90: 250 mmbbls, P50: 950 mmbbls, P10: 2,500 mmbbls

• ➢ Proved prolific source ➢ De-risked future shelf drilling

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

Senegal geology and discovery wells

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• SNE-1 oil discovery (Nov 2014)* ➢ Oil gravity 32 degrees API

• • ➢ Gross oil column 96m Gross oil-bearing interval of > 500m

• • No water-bearing sands intersected➢ Excellent reservoir rocks in 2 main families: lower (500 series) and upper (400 series) 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

SNE Field evaluation program

• Commenced appraisal drilling in Nov 2015

• Seven successful appraisal wells now drilled

• Pre-development appraisal completed

• Objectives of the appraisal program:

• Size of oil pool – 641mmbbls 2C recoverable oil*. Exceeded minimum economic field size of 200mmbbls

• Measure deliverability – world class flow rates encountered

• Measure field connectivity – completed with latest appraisal well

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SNE-2 flow test
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*Reference FAR ASX release dated 23 August 2016, 13 April 2016 unrisked contingent resources, 100% basis, oil only

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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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Deliverability and connectivity of reservoirs
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DST’s conducted on SNE-2, SNE-3, SNE-5, SNE-6
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Pressure gauges installed in SNE-3 and SNE-5
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Lower reservoirs flowed at world class rates (SNE-2)
•
Deliverability and connectivity of upper reservoirs completed in
May 2017
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)

• Deliverability and connectivity of upper reservoirs completed in May 2017

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SNE Appraisal results summary

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• All appraisal wells proved 97m gross oil column

• MEFS of 200mmbbls passed

• 2C resource 641mmbbls* and scope to increase

SNE Field at S460 reservoir level showing Sirius and Spica Prospects

• Deliverability of reservoirs understood – world class flow rates in primary, lower reservoirs

• SNE field footprint expanding to encompass Sirius and possibly Spica prospects

• Lower reservoir units to the west with better reservoir properties

• Size, deliverability and connectivity now understood and pre-development appraisal drilling completed

*Reference FAR ASX release dated 23 August 2016, 13 April 2016: unrisked contingent resources, 100% basis, oil only

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Efficient drilling, costs coming down

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• Currently using the Stena DrillMAX – a 6[th] generation, dual mast, dual BOP drill ship

• 2017 drilling program significantly ahead of planned AFE

• Drilling completed successfully and safely

• Daily rig rates reduced by 70% since first drilling campaign in 2014

• Great time to be drilling appraisal/development wells!

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Looking forward to development of SNE

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• Results from interpretation of final appraisal wells expected in Q3 2017

• Development planning underway

• Development concept is FPSO (Floating Production, Storage and Offtake vessel) with subsea tie backs

• Total expected capital expenditure for Phase 1 development US$5 billion

• First oil expected 2021

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• Estimated Phase 1 production at 140,000 bbls oil per day

• Cairn Energy (operator) NPV of US$12.5/bbl at project FID (2018/19) and US$70/bbl oil price*

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

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First pure exploration well planned since 2014

• FAN South-1 on the South Fan prospect to be drilled next

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• South Fan prospect mapped to contain 134 mmbbls oil *

• South Fan within tie back range to SNE development

• 500m of oil intersected in the FAN-1 well – prolific, oil source rock – indicates more oil to be found

• Undrilled exploration portfolio with >1bn bbls potential* updated Feb 2017

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*Reference FAR ASX release dated 7 February 2017,: gross, unrisked, recoverable, best estimate of prospective resources, oil only

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Growing the portfolio: The Gambia

• In line with FAR’s strategy to focus on NW African shelf following Senegal success

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• Farm-in to 80% interest with operator rights

• Well at end 2018

• Large equity position gives FAR options to farm down

• 1,500km[2] existing 3D seismic (2015)

About The Gambia

• Capital: Banjul

• Population: 1.8M

• Languages: English (official), Mandinka, Wolof

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Extension of the SNE shelf edge trend

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• On trend with SNE – same play

• Access to same source kitchen

• Highly prospective

• High chance of success

• Reservoirs now penetrated by 8 wells

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Extension of the SNE shelf edge trend

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Spica
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• 1 billion barrels of oil prospectivity mapped to date*

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

• Well to be drilled end 2018

• Dry hole well costs US$25-$30M

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

2017 revealing the prize

2013: Year of farmout

2014: Year of discovery 2015-2017: Evaluating the SNE Field 2017-2019 : Development planning and studies 2019-2021 : Engineering, financing & construction 2021 : First oil from Phase 1 SNE development 100% success rate to date offshore Senegal Undrilled exploration prospects with >1bn bbls potential Back to pure exploration with FAN South-1 well FAR is committed to finding more elephants lurking under these prolific 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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