Valuation Problem, page-79

Here ya go: (NOTE: Graphs, etc. are missing)

Issuer FAR Limited (ASX:FAR) (“FAR” or the “Company”)
Transaction
Placement to raise a minimum of A$30.0 million and up to the placement capacity of the Company
in accordance with ASX LR 7.1 and ASX LR 7.1A (approximately A$46.7 million) (“Placement”)
Lead Manager and
Bookrunner
Bell Potter Securities Limited
Offer Price A$0.11
Last Close Price A$0.135
Shares on Issue 2,701,846,742
Market Capitalisation A$364,749,310
Book Closure 4pm AEDT Friday 17 October 2014
Company Description
Principal Activity
FAR Limited is an oil and gas explorer with assets in West and East Africa. The Company has a
an experienced Board, and management team with strong relationships in Africa. FAR is
dedicated to being a leading African focussed exploration company.
FAR has a diversified pipeline of projects that vary from entry level positions in blocks with strong
farm-out potential to high impact drill ready projects. FAR has had success in the first well drilled in
offshore Senegal.
Offer
Offer Structure
Placement of a minimum of approximately 272.7 million and up to 425.0 million new fully paid
ordinary shares (“New Shares”) at A$0.11 per share to raise a minimum of A$30.0 million and up
the placement capacity of the Company in accordance with ASX LR 7.1 and ASX LR 7.1A
(approximately A$46.7 million).
The Placement will occur under the 15% placement capacity of the Company in accordance with
ASX L.R 7.1 and additional 10% placement capacity in accordance with ASX L.R 7.1A. New
shares under the Placement will rank pari passu with existing FAR shares.
Pricing
Price per share Discount
Offer price A$0.11
Last close A$0.135 18.5%
5 day VWAP A$0.124 11.4%
10 day VWAP A$0.123 10.3%
Application of Funds
Funding Senegal drilling, new opportunities around existing permits and working capital related to
other projects.
Capital Structure
Shares on issue 2,701,846,742
Placement shares to be
issued
Minimum
272,727,273
Maximum
424,961,685
Shares on issue post the
Offer
Minimum
2,974,574,015
Maximum
3,126,808,427
Investment Highlights
Key investment points
 High impact exploration in Africa
 Preliminary well results indicate success in first well drilled offshore Senegal
 Farmed out US$240M of work program in last 18 months
 Carried on the drilling of 3 wells and a 2D seismic program
 5 wells in 3 countries in next 15 months
 Global farmin partners ConocoPhillips and Cairn Energy
 Currently drilling second of two back to back wells offshore Senegal targeting combined
predrill 1.5 billion barrel prospective resource*
 Total inventory across FAR portfolio of 8.5+ billion barrels*
* Reference ASX releases dated 27 Feb 2013, 5 Feb 2014, 11 Mar 2014, best estimate, gross, unrisked prospective resources, 100% basis, oil only
DEAL SHEET
FAR LIMITED (ASX:FAR)
Key Exploration Portfolio Highlights
 8 exploration licenses in 3 West
and East African countries
 Combined 31,400km²
 seismic and a well in L6
commencing June 2014
Senegal
 Success in first well drilled
(FAN-1)
o 500m gross oil bearing interval o 29m net oil bearing reservoir o 28° – 41° API oil
o No oil/water contact encountered
o STOOIP P50 950mmbbls*
o Potential for standalone development
 Funding for drilling of two wells
up to US$196m
 Partners are Cairn Energy (40%), ConocoPhillips (35%)
and Petrosen (10%)
 Drilling commenced April 2014
 FAR received US$10M in cash for back costs
 Evaluating 1.5 billion barrels of oil in two wells, 225 million barrels net to FAR**
 Size of total prize pool 3.5 billion barrels oil, 525 million barrels net to FAR**
* From Operator estimate of STOOIP released to
LSE 7 October 2014
** From FAR internal prospective resources 27 Feb
2013, best estimate gross, unrisked prospective resources, 100% basis, oil only
Guinea-Bissau
 Three blocks offshore Guinea Bissau
 Large acreage position in event of success in Senegal

DEAL SHEET
FAR LIMITED (ASX:FAR)
Kenya
 Rights to two exploration blocks
 Proven oil across the new offshore Miocene reef play
 Position to secure more acreage and accelerate program
 Further offshore drilling in 2015 by BG and Anadarko
 Currently farming down the drilling of an offshore well
 FAR free carried through seismic and a well in L6 onshore
Western Australia
 FAR holds a number of interests in petroleum permits in the north-west of WA covering a total of 2,031km2
 These are viewed as prospective for both oil and gas
DEAL SHEET
FAR LIMITED (ASX:FAR)
Board
Nicholas Limb
Non-Executive Chairman
Mr. Limb is a professional geophysicist and also has extensive experience as a stockbroker and merchant banker. He is currently Executive Chairman of Mineral Deposits Limited, an Australian listed company. Nicholas has significant incountry experience in Senegal.
Cath Norman
Managing Director
Ms. Norman is a professional geophysicist who has over twenty years’ experience in the mineral and oil and gas exploration industry, having held executive positions both in Australia and the UK and carried out operating assignments in Europe, Africa, the Middle East and Australia. Cath served as the Managing Director of Flow Energy for 6 years.
Ben Clube
Executive Director
Mr. Clube is Commercial Manager and Executive Director of FAR. With over 20 years of experience Ben brings senior finance executive expertise in the upstream petroleum industry. He has spent the majority of his career at BHP Petroleum and held roles across the full life cycle of exploration, development and operations.
Charles Cavness
Non-Executive Director
Mr. Cavness resides in Denver, Colorado, United States of America, and is an Attorney at Law admitted to practice before the Supreme Courts of the United States and of the States of Texas, Alaska, and Colorado. Charles has served in the legal departments of two large American oil companies, Pennzoil Corporation and Arco. He has spent his entire career in the oil industry, and consequently has experience in the United States, Latin America, Europe and the Middle East. Charles has been a Director of the Company since 1994.
Albert Brindal
Non-Executive Director
Mr. Brindal holds a Masters degree in Business Administration, a Bachelor of Commerce degree and is a Fellow Member of the Certified Practicing Accountants in Australia. He has been a Director of the Company since 2007. .
Share Price and Volume History
Indicative Timetable¹
Company in trading halt (pre-market) Friday 17 October, 2014
Closing date for receipt of firm & irrevocable bids 4pm AEDT Friday 17 October, 2014
Allocations & Placement letters sent to participants Friday 17 October, 2014
Confirmation letters returned to Bell Potter 8:30am AEDT Monday 20 October, 2014
Placement announced & Company resumes trading Monday 20 October, 2014
Placement settlement via DvP Friday 24 October, 2014
Allotment of Placement Shares Monday 27 October, 2014
¹ The Lead Manager and the Company reserve the right to vary these dates
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Oct-13 Nov-13 Dec-13 Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14
Volume (m)
Share Price
FAR Volume FAR Issue Price
All bids are to be firm and irrevocable and transmitted
by 4pm AEDT, Friday 17 October 2014