hartleys new research 29th august

We expect FAR Ltd (FAR, The Company) to continue to generate significant news flow over the next year. The recently announced farmout deal with ConocoPhillips in Senegal was an important milestone for FAR but is by no
means the end of the news flow.

In addition to Company specific catalysts we also believe the high level of exploration activity offshore East and West Africa will provide additional news flow. Below we highlight the catalysts to look out for over the next 12 months.

Farm out of L6
After an extended processing and interpretation phase of the 3D seismic data acquired in 2012, FAR has now recommenced farm out discussions with a number of companies for the L6 block (60% interest). FAR recently released
an independent best estimate of net 2.3 billion barrels of oil across the various targets and leads across the L6 block. The deadline for a commitment well to be drilled on the L6 block has been extended for two years to July 2015.
Farm out of L9 FAR is also working on farming down a portion of its 30% interest in the L9 block.

In the near term we expect FAR to conclude joint venture negotiations with Ophir Energy Plc (Ophir). This milestone will be a catalyst for the Company to initiate a farm down process for a portion of its 30% interest in the L9 block. Ophir is the operator of L9 and holds a 60% working interest.

Drilling in Senegal
Expect drilling of two wells on the Senegal acreage in 1H 2014. In addition to the deep water fan well targeting ~900m bbl best estimate resource (ConocoPhilips operator), Cairn is targeting a shallower shelf play with a best
estimate resource of 600m bbl.
Potential farm out of Australian assets
FAR expect to shoot 3D seismic over the Australian (offshore Western Australia) acreage in early 2014. The Company is preparing to farm down the blocks prior to the 3D seismic survey.
JV partner in Guinea Bissau keen to drill in 2014
The operator Svenska of the GB assets is keen to drill an appraisal well on an existing discovery Sinapa in 2014. FAR is currently evaluating this relatively low risk investment option. FAR has a 21.4% paying interest in the
block with Svenska holding the balance and operatorship.

Valuation
Our valuation methodology is based on risked value of resource potential using notional in ground valuation ranging from US$5 – US$15/bbl and
conservative estimates for probability of success. This methodology results in a risked Net Asset Value of 40cps.