01 July - 30 September 2013

Highlights

ConocoPhillips farms in to FAR's Senegal exploration permits

FAR secures full funding for two offshore Senegal exploration wells, an investment of approximately US$190 million (100% basis, FAR estimate)

Two Senegal wells to test combined prospective resources of approximately 1.5 billion barrels of oil*

Senegal well preparations advancing promptly with rig mobilised for multi joint venture

African drilling program

First Senegal well expected to spud in middle of Q1 2014

FAR entry confirmed to high potential offshore Kenya Block L9 with finalisation of joint venture arrangements

Strong cash position of $25.7m with no debt

Further US$5m to be received from Cairn Energy post farm-in

Projects update

Offshore Senegal (FAR 15% - post farm out)

On 1 August FAR announced its second major farm-in agreement in relation to its offshore Senegal exploration permits with ConocoPhillips. In the previous quarter FAR's first farm in agreement with Cairn Energy Ltd, a UK listed oil and gas company, was approved by the Senegalese Government.
Under the terms of the agreement with ConocoPhillips (which remains subject to Senegalese Government approvals) ConocoPhillips will provide funding equivalent to a full carry of FAR through the first exploration well in exchange for a 10% working interest in the Senegalese permits. This funding will take the form of cash payments and well carry cost payments. Cairn will fund 100% of FAR's costs of the second exploration well offshore Senegal to an investment cap of US$80 million. In addition Cairn has agreed to pay FAR US$9.82 million in two tranches for past costs, of which US$4.82 million has already been received.

FAR permits offshore Senegal

*Unrisked best estimate, 100% basis as per FAR ASX release dated 27 February 2013

As a result, on completion of the two farm-in deals with ConocoPhillips and Cairn, FAR will have secured full
funding for its share of two exploration wells totalling approximately US$190 million (100% basis, FAR
estimate) and net surplus cash of approximately US$10 million. FAR retains a 15% working interest in the permits. ConocoPhillips and Cairn will hold 35% and 40% respectively. Petrosen, the Senegal National oil company, has a 10% carried interest through this exploration phase.
During the quarter FAR transferred operatorship to Cairn and since then well preparations have progressed satisfactorily. On 29 October, FAR announced that the Transocean owned drilling rig, the Cajun Express, had commenced a multi joint venture African drilling campaign, operated by Cairn, which includes FAR's two high impact Senegal exploration wells.
FAR anticipates the first of its two Senegal wells will spud in middle of the first quarter of 2014.
The following is a timetable extracted from Cairn's latest investor presentation confirming spud in Senegal at this time.

The two back to back exploration wells, expected to start drilling in mid Q1 2014, will target approximately
1.5 billion barrels of unrisked prospective resources*. With approximately 900 million barrels to be tested in the
deepwater 'fan' play and 600 million barrels to be tested in the 'shelf' play ('L' Prospect) *.
Both prospects have significant follow-up drilling potential in the event of a discovery. FAR's three contiguous
Senegalese blocks - Rufisque, Sangomar and Sangomar Deep - cover 7,490km2. From 2,050km2 of modern

3D seismic data acquired in the blocks, FAR mapped 11 potentially drillable prospects as well as numerous other leads, many supported by associated seismic amplitude responses in plays including the "fan" and "shelf". FAR assessed its Senegal blocks to have prospective resources of 3.585 billion barrels of oil*.

Prospects in the offshore Sangomar Profond 3D seismic area

*Unrisked best estimate, 100% basis as per FAR ASX release dated 27 February 2013

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Rufisque, Sangomar, Sangomar Deep Working Interest

FAR 15%

Cairn Energy 40% Operator

ConocoPhillips 35%

Petrosen 10%

Kenya Projects - L6 Block (60% operator interest), L9 Block (30% interest)

The L6 and L9 blocks lie in the Lamu Basin offshore Kenya, north of recent, world scale, natural gas discoveries totalling around 100 trillion cubic feet off the coasts of Mozambique and Tanzania.
Growing interest in the Lamu Basin's exploration potential is reflected in the fact that up to 7 wells are planned to be drilled over the next 12 to 18 months. During the quarter Anadarko Corporation announced non-commercial oil in the first of their two wells offshore Kenya. This discovery in the Kubwa Prospect, Block L7, is the first recorded oil discovery for offshore Kenya and highly encouraging for FAR's L6 Block. The results of Anadarko's second well in block 11B on the Kiboko Prospect are yet to be released.
BG is expected to embark on a two well program in Blocks

L10A and L10B in late 2013 and the L8 joint venture is considering a second well on a deeper oil play in 2014 (as per ASX:PCL announcement 24 June 2013). In addition, Afren is currently completing seismic processing in preparation for a two well drilling program in blocks L17 and L18 (Afren plc update 11 September 2013).

FAR permits Kenya

Block L9, Kenya (FAR 30%)
During the quarter FAR concluded agreements on joint venture terms for Block L9. These joint venture agreements formalize FAR's 30% participating interest in the highly prospective offshore Block L9.
Block L9 contains a number of play types with numerous large oil and gas prospects and leads identified from a series of 2D and 3D seismic surveys. FAR has assessed several leads each with the potential to contain prospective resource volumes in excess of 300 million barrels of oil (unrisked best estimate, 100% basis).
Ophir Energy, as Operator of the joint venture, is progressing the necessary government approvals of the joint venture agreements.
The Operator plans to drill the first exploration well on Block L9 at the end of 2014. FAR intends to farm out part of its interest for drilling and has already received unsolicited expressions of interest.
FAR hold a 30% interest in L9.

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Kenya Block L9 Paying Interest

FAR 30%

Ophir Energy 60% Operator

Vanoil Energy 10%

Block L6, Kenya (FAR 60% and Operator)
The final results from the 3D processed data acquired over the L6 block offshore Kenya were received in late April 2013. The results from the high quality are very encouraging and provide technical support for the previously identified Tembo and Kifaru prospects. The Jjint venture resumed its farm in initiative in June and is currently in discussions with a number of parties.
FAR has identified two key play types in the block, the Tembo structural play and the Kifaru reef play. Both of these plays will be tested at the end of the year by the Block L8 Joint Venture (reportedly drilling the Tai prospect on the Mbawa/Tembo trend) and BG (drilling the reef play) in Block 10A / 10B.
Well planning activities for drilling on L6 have commenced for a well in late 2014. The Environmental Impact Assessment (EIA) for drilling has been approved and detailed well planning will be progressed following the selection of the preferred well location by a farm in partner.

Prospect inventory for the L6 block (as released 27 Feb)

Kenya Block L6 Paying Interest

FAR 60% Operator

Pancontinental Oil and Gas 40%

*Unrisked best estimate, 100% basis as per FAR ASX release dated 27 February 2013

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Offshore Guinea Bissau (FAR 21.43%, Operated by Svenska)

In December 2012, the Government of Guinea Bissau approved a 3 year extension to the current exploration term. The extension period which begins on 26 November 2012 has no work program obligations.
FAR and its joint venture partner Svenska Petroleum Exploration AB has approved a work program and budget which includes one firm appraisal well and one contingent exploration well. Svenska is making preparations
to drill in late 2014. The Sinapa appraisal well will be drilled into the Sinapa Oil field discovered by Premier in
2008. FAR has a 21.43% paying interest and 15% working interest in the Sinapa and Esperanca blocks offshore
Guinea Bissau.

FAR continues to monitor the political situation in country very closely and is in discussions with the Operator on the joint venture's future plans and expenditures.

Sinapa (Block 2), Esperanca (Block 4A/5A) Paying Interest

FAR 21.43

Svenska 78.57 Operator

AGC Profond (FAR 10%, Operated by Ophir Energy)

During the quarter the joint venture partners Ophir Energy and FAR approved a firm work program and budget incorporating a full technical evaluation of the PSC's prospectivity. On the completion of this phase of work, the joint venture will then determine an appropriate work program and budget.

AGC Profond Paying Interest

FAR 10%

Ophir Energy 90% Operator

Australia (FAR 100%, and Operator)

Work continued on reprocessing existing 2D and 3D seismic data and planning a 3D seismic survey for later in 2013.

WA-457-P, WA-458-P Paying Interest

FAR 100% Operator

China

During the quarter FAR received a payment equating to approximately A$3 million in relation to the sale of the Beibu Gulf assets in 2009. This was the third and final instalment of the total US$8 million sale price. This final payment was received on satisfaction of conditions stipulated in the sale and purchase agreement, being the production of 1 million barrels of oil from the project.

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Management comment

FAR has concluded two major farm out agreements on its acreage in Senegal securing two fully carried
wells based on current well cost estimates with a total drilling investment of approximately US$190 million.
These farm-in deals have been the result of intensive reworking of the acreage prospectivity and successful commercial negotiations over the last 12 months. A rig has been mobilized for a multi Joint Venture North African drilling campaign and based on its current schedule we expect the first Senegal well to spud in mid Q1 2014.
Following successful negotiations with Ophir Energy, FAR has confirmed its entry in to the highly prospective Block L9 offshore Kenya. Ophir, the Operator of L9, plans to drill the first exploration well on L9 in 2014. Commercial negotiations are continuing for a partner for drilling our Block L6, offshore Kenya. With a two year extension on L6 secured, the Company can manage the drilling timetable and reduced near term forecast cash outflows and will enable the company to glean valuable information from the surrounding wells including BG's well in L10 on the carbonate reef play before selecting a final L6 drill target. There are no expenditure commitments on Block L6.
FAR continues into this next quarter with a strong cash position of AU$25.7 million. Additionally in this next quarter FAR expects to receive significant cash inflows of US$5.0 million from the Senegal farm in transaction. With its strong cash position and minimal financial commitments and the impact of current market turbulence on some parts of the oil and gas exploration sector, FAR has been investigating opportunities to expand its portfolio and is reviewing various opportunities including new acreage awards, farm-ins and corporate transactions.

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