FAR LIMITED — Investor Presentation 2018

Sep 4, 2018

Building on solid foundations

Investor Presentation September 2018

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• At 4 September 2018

FAR relative performance

Relative performance – since 1-Jul-17

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$0.14
Brent oil:
$0.12
US$77.7 +57%
FAR:
11.5cps +53%
ASX-200 Energy:
$0.10 11,938 +37%
$0.08
$0.06
Jul-17 Oct-17 Jan-18 Apr-18 Jul-18
FAR S&P ASX-200 Energy Index (rebased) Brent oil (US$/bbl, rebased)
Share price (A$p.s.)
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Source: IRESS. Note: Market data as at 30-August-18.

S&P ASX-200 Energy Index and Brent price indexed to FAR’s share price of 7.5cps, as at 1-Jul-17.

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The Gambia

• Independence: 1965

• Young and growing population of 2.2 million

• 95% Muslim

• Economy dominated by farming, fishing & tourism

• 50% population live below poverty line

• Jammeh autocratic regime: 1994-2016

• 2nd December 2016 Election: peaceful regime change to Barrow

• Reforms to strengthen governance, fiscal regime and rule of law

• Improving international relations

• National Development Plan 2018-2021

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FAR in The Gambia

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The Gambia farmout to PETRONAS

• FAR Farmed in to blocks A2/A5 in March 2017

BLOCK A2 & A5

FAR 40% interest and Operator PETRONAS 40% interest

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• 80% equity and Operator

• FAR farmin valued at US$165K per % point

• Farm out to PETRONAS in February 2018

• 40% interest and retain Operatorship

• PETRONAS farmin valued at US$665 per % point

• Government approval of transaction 24 August 2018

• FAR net cash forecast to increase by approximately A$20M (Sept 2018)

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Prospectivity of the A2 and A5 blocks

• Blocks A2 and A5 highly prospective following the discovery of SNE field

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• Samo and Bambo Prospects mapped and audited by RISC (21 November 2017)

• New Soloo prospect identified 2018

• Samo well location finalized with spud date confirmed in October

• Success will be transformational for people of The Gambia

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*Reference FAR 2017 Annual Report to Shareholders, best estimate, gross, unrisked prospective resources, 100% basis, oil only

Samo Prospect: Block A2, The Gambia

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Samo Prospect – Extension of the SNE trend

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

• Samo-1 only 23km from southernmost SNE well (SNE-5)

• Samo reservoirs have been drilled by 9 wells in Senegal drilling program at 100% success rate on the structural trend

• Samo given 50% CoS

• Soloo next potential drilling target

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Samo Prospect - Geology

Seismic depth section through the Samo prospect showing the reservoir intervals proven at SNE.

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Samo Prospect Volumes*	Low estimate (P90)	Best estimate (P50)	High estimate (P10)
	335	825	1,713

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Samo-1 (working location)
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*Seismic Data provided courtesy of Polarcus

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*See ASX announcement 21 November 2017 best estimate, gross, unrisked prospective resources, 100% basis

Soloo Prospect

Soloo Prospect volumes Recoverable resource (mmbbls)*	Low estimate (P90)	Best estimate (P50)	High estimate (P10)
SNE field extension (S4300)	96	193	327
Shallow Samo target (S4000)	44	142	456

• Two target levels

• Currently estimated as being 73% CoS for oil in the S4300 reservoir interval

• Samo-1 well result will not effect CoS for Soloo

• Yet to be reviewed by RISC

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Soloo
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*Recoverable prospective resources, best estimate, gross, unrisked, 100% basis

Soloo well has potential to test Bambo Prospect

• It is possible to test both the Soloo and Bambo Prospects with the one well

• Bambo is an untested play at a shallower level but with large potential

• CoS at Bambo estimated at 18%

Bambo Prospect Recoverable resource (mmbbls)*	Low estimate	Best estimate	High estimate
S186	117	333	902

• Bambo Prospect is independent of Samo

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*Seismic Data provided courtesy of Polarcus

*See ASX announcement 21 November 2017 best estimate, gross, unrisked prospective resources, 100% basis

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Samo, Soloo and Bambo prospect summary

Samo

• Well location finalised

• Reservoir presence supported by recent seismic inversion work

• Identification of possible DHI (direct hydrocarbon indicator) on 3D seismic

• Results of Samo-1 well not likely to influence prospectivity of Soloo and Bambo Prospects

Soloo and Bambo

• Soloo and Bambo being brought up to drill ready status

• Detailed structural mapping integrating RSSD and Gambia data completed

• Seismic inversion products from RSSD and Gambia support prediction of good quality reservoir

• Very large upside potential in A2 block

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Drilling readiness

• October spud with results by year end

• EIA approval received in February

• Operator organisation and local office established

• Shore base contracts awarded

• Well location finalised

• DWOP & LWOP exercises completed

• Rig reactivation has begun

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FAR in the MSGBC Basin

• The Mauritania-Senegal-Guinea-BissauConakry Basin has emerged as a global hotspot for oil and gas exploration

• FAR is one of the largest acreage holders in the MSGBC Basin

• FAR in Senegal since 2006, Guinea-Bissau since 2008 and The Gambia since March 2017

• Basin opening FAN-1 and SNE-1 oil discoveries, 2014

• SNE ranked as worlds largest oil discovery in 2014

• FAR 15% Senegal (Cairn Energy Operator), 20% Guinea-Bissau (Svenska Operator), 40% of blocks A2 and A5 offshore The Gambia

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FAR LICENCES OFFSHORE SENEGAL, THE GAMBIA & GUINEA-BISSAU

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FAN-1 and SNE-1 created this industry hotspot

Industry hotspot – increased investment and activity

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• FAN and SNE discoveries 2014

• FAN South and SNE North discoveries 2017

• 100% drilling success (11 wells) to date in FAR’s Senegal acreage

• Major gas discoveries made in 2015, 2016, 2017 by Kosmos and partners

• BP farm-in to Kosmos acreage 2016

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

• Total awarded ROP block, Senegal May 2017

• PETRONAS farmin to FAR’s blocks A2/A5 offshore The Gambia, March and Total ROP Block Aug 2018

• Exxon and Shell entry into Mauritania 2018

Stellar Energy Advisers stated ‘The SNE discovery saved African exploration’

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FAR in Senegal

• FAR introduced Cairn Energy and ConocoPhillips to the joint venture in 2012

• SNE Field discovered in November 2014

• SNE-1 was the first oil exploration well drilled offshore Senegal in 40 years

• JV now invested ~ US$930M in four years

• 11[th] successful oil well drilled in 2017

• SNE field 641mmbbls 2C resource[*]

• All discoveries made to date within tie back range of a hub development at SNE

• Undrilled prospects in total have prospective resources of 673 mmbbls oil*

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*Reference FAR 2017 Annual Report to Shareholders, best estimate, gross, unrisked, recoverable prospective and contingent resources, 100% basis, oil only

Senegal in 2018

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SNE development and tie back concept

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• Full field, phased development

• Standalone FPSO : planned expansion capability for tie-backs

• Estimated phase 1 CAPEX: $3bn

• Breakeven oil price : US$35/bbl*

• Unlevered IRR at US$60/bbl: ~34%*

• Plateau production : expected to be ~100,000 bopd (phase 1)

• FEED commencing : Dec 2018

• Gas production expected 2024

SNE Field development concept

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*Operator presentation 23 May 2018

Donation of soccer balls and uniforms to local community

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Another big year ahead

• Value drivers for the year ahead are large and converging on the second half of 2018

• Final JV agreed resources and economics for the SNE Field development

• Submission and approval of the SNE Field Exploitation plan

• Drilling of the Samo-1 well offshore Gambia

• Finalise funding arrangements for the SNE Field development

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Contact us

Level 17, 530 Collins Street Connect with FAR Limited: Melbourne VIC 3000 Australia T: +61 3 9618 2550 info@far.com.au 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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