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FAR Limited
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2015 Annual General Meeting
| Catherine Norman | Page 33 of 11 |
November 21, 2024
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33 Senegal Economics* *Source: Cairn Energy estimates (refer Cairn Energy Capital Markets Day presentation 11/05/2015) • 330mmbbls at SNE* • 50mmbbls net to FAR* • CAPEX $17-26/bbl (~US$5.8bn)* • OPEX $5-15/bbl* • Futures curve price of oil US$75 • Current oil price: US$67 • US$10 NPV/bbl at US$70 oil • SNE likely to be standalone at >200mmbbls* • Macro headwinds (soft oil price, poor market sentiment, lack of success in sector) are blowing hard! 0 2 4 6 8 10 12 14 16 18 US$90/bbl @ 2014 costs US$70/bbl@ 10% cost reduction US$50/bbl @ 20% cost reduction NPV/bbl (US$) 0% 5% 10% 15% 20% 25% 30% 35% 40% US$90/bbl @ 2014 costs US$70/bbl @ 10% cost reduction US$50/bbl @ 20% cost reduction Project IRR (%) NPV/ bbl at FID IRR a t FI D