IVZ - General Discussion, page-17

Just some background on the USD$1,760m valuation for the Lokichar Basin project shown in our latest preso - firstly, this wasn't based on a farm-out of 25% directly to Total Energy. It originally went to Maersk in 2015. And then Maersk were later acquired by Total Energy in 2017.

The USD$1,760m valuation is the value of 100% stake based on the upfront cash payment of US$440m from Maersk to Africa Oil Corp for 25% of Blocks 10BB, 13T and 10BA in 2015.

As part of this transaction Maersk also carried Africa Oil Corp for a further US$480m of development costs (source here).

So the full valuation of 100% stake in this project based on the combination of upfront cash and development costs is actually US$3.7B.

At this time there were contingent resources of 600mmbbls of oil in Blocks 10BB and 13T with upside of 1.3 billion barrels of oil in existing fields (source on pg.3 here).

And interestingly enough, when Maersk were acquired by Total Energy for US$7.45B in 2017, around 1/3 of their oil resources were associated with the Lokichar Basin project. So within 2 years of the Maersk transaction to farm-in to the Lokichar Basin, their US$920m investment (US$440m upfront cash + US$480m development costs to Africa Oil) had technically become 1/3 of US$7.45B = US$2.5B.

When you start looking at transaction costs per barrel of oil using these metrics, then regardless of the fact that we are likely to be predominantly gas condensate and some oil, the potential valuation for 80% of just Mukuyu alone is enormous.