Ann: Additional gas discovery in Lower Angwa Mukuyu-2, page-638

"No company would release this type of data to the market - I've never seen it - Scott's position was totally understandable.

"The participant was asking for a heap of data that companies just don't release because it's commercial, in confidence

"and is one of the most valuable things from a drilling program."


Scott rightlyindicated that he is not prepared to release Intellectual Property Data, fromMukuyu 1 and 2 to the wider Market.

Because it has “commercial value”.

What isIntellectual Property Data worth tothe Oil and Gas Industry ? (Try US$15million ?)

One example Iremember is this below, from the UK North Sea in 2013:

The Norwegian Company, Statoil (later Equinor), was partnered with Shell inexploring and developing the Bressay Field on UKCS in 2013.

In May 2013 Statoil boughtthe Extended Well Test (EWT) IP data from Xcite Energy (XEL.L) for US$15 million.

Statoilreferred to this EWT data from the Bentley Field in its decision to re-evaluatethe development concept for the Bressay Field,
(the neighbouring analogue to thenorth of Bentley) and to delay its field development decision.

Statoil stated that the Xcite data had given indications that there waspotential to simplify the concept and investigate alternative developmentsolutions.

Whatdid IP from the Bentley Field - Extended Well Test (EWT) - amount to ?

As described:

“Themain purpose of the EWT was to achieve the key technical and commercialobjectives, which would provide us greater certainty around that plan andenable us to materially reduce the overall project risk.

“Followingthe successful EWT, we can now demonstrate that the reservoir can be drilledand completed successfully, that water production is predictable and manageableand that the oil will flow to surface at sustainable commercial rates.

“Wehave proven the methodology to dehydrate the oil to export quality on afloating storage vessel (FPSO) which, together with an effective in-fieldblending strategy, will allow the Bentley crude to be exported directly to themarket.

“TheEWT data also allows us to continue optimisation of the development plan andundertake further enhanced oil recovery (“EOR”) work programmes.

“Thisgreatly increased knowledge was also important to help address a changingindustry environment, which has seen a shift in the allocation of developmentbudgets and a tightening of available human resources, both of which have had aclear impact on major new development projects”.

Source:

Xcite EnergyLimited Annual Report and Financial Statements for the year ended 31 December2013

https://www.rns-pdf.londonstockexchange.com/rns/2976D_-2014-3-26.pdf

So - Hang on to that Mukuyu IP Data - Scott!!