Senegal resources update • Independent Resources Report...

Senegal resources update
• Independent Resources Report completed by RISC for FAR’s FAN oil discovery and undrilled
exploration prospects, offshore Senegal
• 2C Contingent recoverable oil resource of 198mmbbls* in the FAN discovery
• Undrilled prospects in total have prospective resources of 673mmbbls oil (best estimate)*
• Joint venture intends to progress appraisal plans for the FAN South and SNE north oil
discoveries
• A review of the SNE oil field is expected mid-year
FAR (ASX:FAR) has completed detailed geotechnical studies and reviewed the contingent resources
attributed to the FAN discovery and prospective hydrocarbon resource potential in its Rufisque,
Sangomar and Sangomar Deep (RSSD) Permits, offshore Senegal.
The RSSD blocks cover an area of approximately 7,500kms2 and are home to the giant SNE oil field,
discovered in 2014 by FAR and its partners in a two-well exploration drilling campaign offshore
Senegal. The discovery of the SNE oil field and oil in the FAN-1 well (that was drilled into the deepwater
FAN prospect) were the first wells to be drilled in the deepwater offshore Senegal and opened up what
is now a global hotspot for oil and gas exploration.
FAR and its joint venture partners have
completed the appraisal drilling over
the SNE oil field in the 2016 and 2017
drilling campaigns and the field is
currently progressing towards Final
Investment Decision (“FID”) in 2019
following the approval of the
exploitation plan by the Government of
Senegal which is expected by the end of
2018.
The SNE field development will be
phased and it is anticipated that nearby
discoveries that are within tie-back
distance of the SNE field, will be
developed in later phases. The focus of
the joint venture has to date been to
mature a commercial development of
the SNE field before finalising
assessment of these tie back
opportunities.
Figure 1: Location of all wells drilled to date in FAR’s Senegal permits
* Refer to Cautionary Statement in this report (page 4) relating to estimates of prospective resources Page 2
The FAN discovery well results (refer to ASX announcement dated 7 October 2014) has been evaluated
by FAR and an Independent Resources Report for discovery has been completed by RISC Operations
Pty Ltd (“RISC”).
The FAN discovery contingent resource estimate detailed in Table 1 below have been calculated based
on FAN-1 well log interpretation and mapping using the 3D seismic and bare set out in RISC’s report
and assessment of the probabilistic resource evaluation carried out by FAR in accordance with industry
standard SPE-PRMS definitions. A development project is contingent on further appraisal, formulation
and approval of a field development plan and financing.
Table 1. Summary of oil contingent resources (MMstb) included in RISC’s March 2018 report

	Column 1	Column 2	Column 3	Column 4	Column 5	Column 6	Column 7
0	Gross	Net Attributable
1	1C [/COLOR]	2C	3C	1C	2C	3C
2	FAN Discovery (MMstb)	30	198	637	4	27	87

1. Gross are 100% of the resources attributable to the licence.
2. Net attributable are reported on the basis of FAR’s current working interest share of 15%. Petrosen has an option to increase its working
interest through the exploitation phase which would reduce FAR’s working interest to 13.7%.
3. The contingent estimates are not adjusted to reflect the Production Sharing Contract entitlement on net economic interest basis.
The FAN discovery is approximately 20kms from a development hub planned at the SNE field and hence
is well within tie back distance estimated to be approximately 30kms. FAR has assessed the SNE field
to contain 641mmbbls oil* (96mmbbls net to FAR, see ASX anouncement dated 23 August 2016).
In the 2017 drilling campaign, FAR also drilled two new discoveries, FAN South and SNE North (as seen
in Figure 1 alongside the location of the SNE Field and FAN discovery). Submissions have been made
to the Government of Senegal seeking approval to undertake appraisal work programs to understand
the potential commerciality of FAN South and SNE North as tie backs to the SNE Field development.
FAR has further reviewed the undrilled prospects, integrating data from the 3D seismic survey acquired
in 2015, reprocessed data from the existing 3D survey and data from the 11 successful oil wells now
drilled in the RSSD acreage. These prospects have been reviewed by RISC and an Independent
Resources Report for these prospective resources has been provided to FAR. Table 2 below details the
prospective resource inventory in the RSSD acreage as reviewed by RISC.
Table 2: Summary of RSSD Prospective Resources
* Refer to Cautionary Statement in this report (page 4) relating to estimates of prospective resources Page 3
FAR Managing Director Cath Norman said, “The eleven successful oil wells drilled to date in our
acreage offshore Senegal are testimony to the fantastic opportunity FAR has captured and continues
to mature for our shareholders. Alongside the giant SNE field, the FAN, FAN South and SNE discoveries
are all within tie-back range of the planned hub development over SNE. The addition of more oil to the
future phases of the development not only extends the life of the field but improves the longer-term
economics of the development and revenues for the people of Senegal.
This province, and in particular our RSSD acreage, has had so few wells drilled, has rich source rocks
and excellent reservoirs - so has good potential to unlock more oil when these undrilled prospects are
tested in the future. Adding 198mmbbls of 2C oil resource in the FAN discovery to the 641mmbbls FAR
has assessed for the SNE discovery totals an enviable 123mmbbls of 2C resources net to FAR and
development of these barrels will be underpinned by FID planned in 2019”.