FAR LIMITED — Investor Presentation 2017

Feb 6, 2017

A world class oil story Investor Update February 2017

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About FAR

• NW Africa focussed oil exploration company

• Sixth largest independent exploration & production company listed on the Australian Securities Exchange

• SNE ranked world’s No. 1 discovery in 2014 by IHS

• RISC audited SNE 2C contingent recoverable oil resource 641 mmbbls (96 mmbbls net to FAR)* with upside

ASX Ticker	FAR
Share price*	A$0.08
Cash*	A$47m
Issued shares	4.46bn
Market capitalisation	A$345M

• *Share price as at 02 February 2017. Cash balance as at 31 December 2016

• 21 mths from SNE discovery to commerciality statement

• Drilling offshore Senegal now (SNE-5 spudded 21 Jan)

• Funded for approved 2017 Senegal work program

• Planning for SNE development in low cost environment

• Robust balance sheet (no debt), experienced board and management team with strong relationships in Africa

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

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As at 21 October 2016

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

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FAR in Senegal

• FAR has been in Senegal since 2016

• Senegal is a peaceful democracy with a stable outlook ( S&P sovereign credit rating B+/B ) and projected growth rate of 6% this year

• Strong in country relationships

• Farmed down to Cairn Energy and ConocoPhillips in 2013 for US$196M carry + cash

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

• Sale of COP’s Senegal assets subject to partner pre-emptive rights and Senegal Government approval

• President is a petroleum geologist!

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OFFSHORE SENEGAL PSC

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

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World hot spot for oil and gas discoveries

2013 – No deep water drilling offshore Senegal

2016 – Offshore oil and gas discoveries

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The basin opening FAN-1 and SNE-1 oil discoveries have made Senegal one of the world’s most attractive new areas for oil exploration with a 100% deep water drilling success rate since 2014 . Major gas discoveries north of FAR and BP’s farm-in into them has introduced a large IOC to the basin

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Senegal geology and discovery wells

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• SNE-1 oil discovery (Nov 2014)  Oil gravity 32⁰ API  Gross oil column 96m

• FAN-1 oil discovery (Oct 2014)  FAR gross contingent •

• Oil gravity 28-41⁰ APIGross oil-bearing interval of > 500mresource[*] •

• Gross oil bearing interval No water-bearing sands intersectedP90 (1C): 348 mmbbls, >500m P50 (2C): 641 mmbbls,

• Operator gross oil STOIIP P10 (3C): 1,128 mmbbls (in place)*  Excellent reservoir rocks in 2 P90: 250 mmbbls, main families: lower and P50: 950 mmbbls, upper reservoir sands P10: 2,500 mmbbls

• Proved prolific source  De-risked future 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

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SNE 2015/16 appraisal wells

Four appraisal wells drilled in the 2015/16 campaign Objective the appraisal program:

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• Size of oil pool

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

• Measure field connectivity (2017 SNE-5 & 6 wells)

Currently drilling SNE-5 SNE-4 SNE-3 SNE-1 SNE-2 BEL-1

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N
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S

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Drilled
Drilling
Gas
Oil
Reservoir sands
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Size of the SNE oil pool

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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 releases dated 23 August 2016, 13 April 2016, 20 Nov 2014: 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 of oil from SNE

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SNE-2 flow test
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Main reservoirs flowed at commercially viable rates

SNE-2 lower and upper reservoirs units

• Gross 12m: 8,000 bopd through 3/4“ choke (stabilised constrained flow)

• Gross 15m: 1,000 bopd through 3/8“ choke (unstabilised)

• Flowed higher than estimates

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SNE-3 tested upper reservoir units

• Gross 15m: 5,400 bopd / 4,000 bopd through a 7/8“ choke (stabilised)

• Gross 20.5m zone: 4,500 bopd co-mingled through a 7/8“ choke (stabilised)

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

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Reference FAR ASX releases dated 09 March 2016 and 04 January 2016

Appraisal results to date

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• 2015/16 drilling program

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[[2]]
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• completed safely, efficiently and under budget

• Each well confirmed:

• ~100m gross oil column

• High quality 32⁰ API oil

• Correlation of reservoir units

• Footprint: SNE field now 350km[[2]]

• Size: Minimum economic field size

• ( MEFS) established >200mmbbls

• Deliverability : Proven through

• DST’s

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2017 Drilling program

• Drilling of SNE-5 commenced 21 January

• Back to back SNE-5 and SNE-6 field

• development optimisation wells

• SNE-5 to be flow tested and pressure gauges installed

• SNE-6 to be flow tested and used as a pulse well for the interference test across the field

• Objectives of the two wells:

• confirm volumes, connectivity and productivity

• evaluate reservoirs not flow tested to date

• Collect data required to optimise field development plan

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Drill costs coming down

Stena Drillmax contracted for the drilling and evaluation of SNE-5 and SNE-6 plus options

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Stena DrillMAX is a state of the art, sixth generation, dual mast, dynamically positioned, deep water drill ship with extensive international and regional West African experience

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Status of SNE development planning

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Development planning underway

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• Currently in preFEED stage (concept select)*

• Low cost environment

SNE development to benefit from:

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• Project optimisation

• Standardisation

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Categorisation

Source: Society of Petroleum Engineers, Petroleum Resource Management System

*Cairn Energy Half Yearly Result 16/08/2016

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SNE development concept

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• Standalone FPSO: with expansion capability for satellite tie-backs

• FAR’s phased development concept has plateau production of 140,000 bopd and first oil in 2022*

• Development expenditure:

US$13-$15/bbl*

• Operating expenditure:

US$12-$14/bbl*

(including FPSO lease costs)

• Breakeven oil price: US$35/bbl*

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*Reference FAR ASX release dated 1 September 2016

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O erator economic develo ment scenario p p

SNE stand alone development (based on Cairn 2C 473 mmbbls)

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US$12.50/bbl
FAR EV /
SNE 2C
contingent
oil resource
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Source: Cairn Energy estimates (refer Cairn Energy Half Yearly Result 16/08/2016 and Cairn Energy Capital Markets Day presentation 11/05/2015) FAR EV/2C contingent oil resource: Assumes $0.08 share price, A/US: $0.75, Cash: A$47m, SNE 2C: 641 mmbbls

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Scratching the surface of the prospectivity

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Tie-back radius
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• 500m of gross oil interval

• intersected in the FAN-1 well – prolific, oil source rock

• Deepwater drilling has a 100% track record . There have been 6/6 successful wells drilled by FAR from 2014

• Extensive portfolio of undrilled exploration prospects with

• 1.5bn bbls* (unrisked) potential

• New 2015 3D seismic shot along shelf edge trend from SNE

Reference FAR ASX release dated 7 Feb 2017 best estimate, gross, unrisked prospective resources, 100% basis, oil only

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Senegal undrilled prospect inventory[*]

						Unrisked Best
						Estimate
						Prospective
		Low	Best	High	FAR	Resources net to	Chance of
	Target	Estimate	Estimate	Estimate	Working	FAR	Discovery
Prospect	Reservoir	(mmbbls)	(mmbbls)	(mmbbls)	Interest	(mmbbls)	(%)
Sirius	Albian shelf edge	137	294	458	15%	44.1	60%
Spica	Albian shelf edge	85	199	325	15%	29.9	37%
Leebeer SNE	Late Albian shelf	36	116	335	15%	17.4	33%
Leebeer Sirius	Late Albian shelf	16	50	146	15%	7.5	20%
Leebeer Spica	Late Albian shelf	16	47	128	15%	7.1	20%
Rufisque Onlap	Albian	28	181	849	15%	27.2	15%
South Fan	Turonian Fan	51	134	322	15%	20.1	18%
Central Fan	Turonian Fan	31	96	267	15%	14.4	17%
Alhamdulillah	Albian Fan	28	80	198	15%	12.0	23%
Leraw	Cenomanian	35	108	316	15%	16.2	23%
Jabbah	Cenomanian	17	44	106	15%	6.6	25%
Jabbah Deep	Cenomanian	50	111	231	15%	16.7	16%
Total all prospects		530	1460	3681		219.0
Suum Lead¹	Aptian carbonates		103		15%	15.5
Total prospects and leads			1563			234.5

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• Reference FAR ASX release dated 7 Feb 2017 best estimate, gross, unrisked prospective resources, 100% basis, oil only 1. Not audited by RISC

Operator chance of discovery at Sirius 67% (refer Cairn Energy Half Yearly Results, August 2016)

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SNE story so FAR

21 months from discovery to statement of commerciality

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|||||||
|---|---|---|---|---|---|
|OCT 2014|NOV 2014|DEC 2014|NOV 2015|JAN 2016|JAN 2016|
|Spud SNE-1|Discovery|Contingent|Spud SNE-2|SNE-2 DST|Spud SNE-3|
|at SNE-1|resource|World class|
|announced|upgrade|flow rates|
|2C 330 mmbbls|
|FEB 2016|MAR 2016|APR 2016|JUN 2016|AUG 2016|JAN 2017|
|DST Greater|Spud BEL-1 to|Contingent|Demob Ocean|Contingent|Spud of SNE-5|
|than expected|target exploration|resource|Rig Athena|resource|to test upper|
|flow rates|prospect &|upgrade 2C 561|Drillship|upgrade 2C 641|reservoirs &|
|flanks of SNE field|mmbbls|mmbbls|optimize SNE|
|Contingent|
|development|
|resource|Spud SNE-4 as|Statement on|
|plan|
|upgrade|step out well|commercial|
|2C 468 mmbbls|viability &|
|entering|
|pre-FEED|

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*Reference FAR ASX releases dated 23 August 2016, 13 April 2016, 20 Nov 2014: unrisked contingent resources, 100% basis, oil only

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What’s next in Senegal?

• Drilling and flow test results from the firm SNE-5 and SNE-6 drilling program

• Addition to contingent resources

• De-risking barrels towards reserves

• Progress the SNE development plan for the SNE Field and move from pre-FEED to FEED

• Further evaluation FAR’s extensive portfolio of high quality prospects

• Active new ventures program – focus on the NW African margin

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2017
SENEGAL
Sangomar Profond Drilling SNE-5 Drilling SNE-6 Option Wells
Jan Feb Mar Apr May June July Aug Sep Oct
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Appendices

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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

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

11 years in Financial services with May and Mellor and HSBC. 39 years industry experience in the resources industry.

Geophysicist

29 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

28 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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FAR research coverage

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Peter Arden +61 3 9256 8700 parden@bellpotter.com.au

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James Bullen +61 2 9263 2728 james.bullen@canaccord.com.au

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Sam Webb +61 2 8205 4535 sam.webb@credit-suisse.com

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Simon Andrew +61 8 9268 3020 simon_andrew@hartleys.com.au

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Tim Hurst-Brown +44 20 7866 0092 Tim.hurst.brown@mirabaud.co.uk

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Adam Martin +61 3 9256 8904 adam.martin@morganstanley.com

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Adrian Prendergast +61 3 9947 4134 adrian.prendergast@morgans.com.au

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Ben Wilson +61 2 9003 3066 ben.wilson@rbccm.com

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Peter Strachan +61 412 400 952 pstrach@iinet.net.au

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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 presentation, 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.

• Prospective and Contingent Resources - All contingent and prospective resource estimates presented in this presentation are prepared as at 27/2/2013, 11/3/2014, 5/2/2014, 13/04/2015, 13/4/2016 and 23/08/2016 (Reference: FAR ASX releases of the same dates). The estimates have been prepared by the Company in accordance with the definitions and guidelines set forth in the Petroleum Resources Management System, 2007 approved by the Society of Petroleum Engineer and have been prepared using probabilistic methods. The contingent resource estimates provided in this report are those quantities of petroleum to be potentially recoverable from known accumulations, but the project is not considered mature enough for commercial development due to one or more contingencies. The prospective resource estimates provided in this report are Best Estimates and represent that there is a 50% probability that the actual resource volume will be in excess of the amounts reported. The estimates are unrisked and have not been adjusted for both an associated chance of discovery and a chance of development. The 100% basis and net to FAR contingent and prospective resource estimates include Government share of production applicable under the Production Sharing Contract.

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Disclaimer

• Competent Person Statement Information - The hydrocarbon resource estimates in this presentation have been compiled by Peter Nicholls, the FAR Limited 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 Petroleum Engineers and the Petroleum Exploration Society of Australia. Mr Nicholls consents to the inclusion of the information in this report relating to hydrocarbon Contingent and Prospective Resources in the form and context in which it appears. The Contingent and 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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