Common use of Commercial Discovery Clause in Contracts

Commercial Discovery. (i) A Commercial Discovery - whether of Oil or Gas - may consist of one producing reservoir or a group of producing reservoirs which is worthy of being developed commercially. After discovery of a Commercial Oil or Gas Well CONTRACTOR shall, unless otherwise agreed upon with EGPC, undertake as part of its Exploration program the appraisal of the discovery by drilling one or more appraisal xxxxx, to determine whether such discovery is worthy of being developed commercially, taking into consideration the recoverable reserves, production, pipeline and terminal facilities required, estimated Petroleum prices, and all other relevant technical and economic factors. (ii) The provisions laid down herein postulate the unity and indivisibility of the concepts of Commercial Discovery and Development Lease. They shall apply uniformly to Oil and Gas unless otherwise specified. (iii) CONTRACTOR shall give notice of a Commercial Discovery to EGPC immediately after the discovery is considered by CONTRACTOR to be worthy of commercial development but in any event with respect to a Commercial Oil Well not later than thirty (30) days following the completion of the second appraisal well or twelve (12) months following the date of the discovery of the Commercial Oil Well, whichever is earlier or with respect to a Commercial Gas Well not later than twenty four (24) months following the date of the discovery of the Commercial Gas Well (unless EGPC agrees that such period may be extended) except that CONTRACTOR shall also have the right to give such notice of Commercial Discovery with respect to any reservoir or reservoirs even if the well or xxxxx thereon are not "Commercial" within the definition of "Commercial Well" if, in its opinion, a reservoir or a group of reservoirs, considered collectively, could be worthy of commercial development. It is understood that, any Crude Oil produced from an under-testing well in the Area before it is converted to a Development Lease, either considered Commercial or non-commercial Well, and not used in petroleum operations, is 100% owned by EGPC and not subject to Article VII. CONTRACTOR may also give a notice of a Commercial Oil Discovery in the event it wishes to undertake a Gas Recycling Project. A notice of Commercial Gas Discovery shall contain all detailed particulars of the discovery and especially the area of Gas reserves, the estimated production potential and profile and field life. Within sixty (60) days following receipt of a notice of a Commercial Oil or Gas Discovery, EGPC and CONTRACTOR shall meet and review all appropriate data with a view to mutually agreeing upon the existence of a Commercial Discovery. The date of Commercial Discovery shall be the date EGPC and CONTRACTOR jointly agree in writing that a Commercial Discovery exists. (iv) If Crude Oil or Gas is discovered but is not deemed by CONTRACTOR to be a Commercial Oil / Gas Discovery under the above provisions of this paragraph (c), or one (1) month after the expiration of the period specified above within which CONTRACTOR can give notice of a Commercial Oil/ Gas Discovery, or thirteen (13) months after the completion of a well not considered by CONTRACTOR to be a "Commercial Oil Well" or after the expiration of twenty five (25) months after the completion of a well not considered by CONTRACTOR to be a "Commercial Gas Well", EGPC shall have the right, following sixty (60) days notice in writing to CONTRACTOR, at its sole cost, risk and expense, to develop, produce and dispose of all Crude Oil or Gas from the geological feature on which the well has been drilled. Said notice shall state the specific area covering said geological feature to be developed, the xxxxx to be drilled, the production facilities to be installed and EGPC's estimated cost thereof. Within thirty (30) days after receipt of said notice CONTRACTOR may, in writing, elect to develop such area as provided for in the case of Commercial Discovery hereunder. In such event all terms of this Agreement shall continue to apply to the specified area. If CONTRACTOR elects not to develop such area, the specific area covering said geological feature shall be set aside for sole risk operations by EGPC, such area to be mutually agreed upon by EGPC and CONTRACTOR on the basis of good Petroleum industry practice. EGPC shall be entitled to perform or in the event Operating Company has come into existence, to have Operating Company perform such operations for the account of EGPC and at EGPC's sole cost, risk and expense or by any other means deemed to be appropriate by EGPC for developing such discovery. When EGPC has recovered from the Crude Oil / Gas produced from such specific area a quantity of Crude Oil/Gas equal in value to three hundred percent (300 %) of the cost it has incurred in carrying out the sole risk operations. CONTRACTOR can have the option, only in the event of EGPC's approval or in case there has been a separate Commercial Oil / Gas Discovery, elsewhere within the Area, to share in further development and production of that specific area upon paying EGPC one hundred percent (100%) of such costs incurred by EGPC. Such one hundred percent (100%) payment shall not be recovered by CONTRACTOR. Immediately following such payment the specific area shall either (i) revert to the status of an ordinary Development Lease under this Agreement and thereafter shall be operated in accordance with the terms hereof; or (ii) alternatively, in the event that at such time EGPC or its Affiliated Company is conducting Development operations in the area at its sole expense and EGPC elects to continue operating, the area shall remain set aside and CONTRACTOR shall only be entitled to its production sharing percentages of the Crude Oil / Gas as specified in Article VII (b). The sole risk Crude Oil/Gas shall be valued in the manner provided in Article VII (c). In the event of any termination of this Agreement under the provisions of Article III (b), this Agreement shall, however, continue to apply to EGPC's operations of any sole risk venture hereunder, although such Agreement shall have been terminated with respect to CONTRACTOR pursuant to the provisions of Article III (b).

Commercial Discovery. (i) A Commercial Discovery - whether of Oil or Gas - may consist of one producing reservoir or a group of producing reservoirs reservoirs, which is worthy of being developed commercially. After discovery of a Commercial Oil or Gas Well CONTRACTOR shall, unless otherwise agreed upon with EGPC, undertake as part of its Exploration program the appraisal of the discovery by drilling one or more appraisal xxxxx, to determine whether such discovery is worthy of being developed commercially, taking into consideration the recoverable reserves, production, pipeline and terminal facilities required, estimated Petroleum prices, and all other relevant technical and economic factors. (ii) The provisions laid down herein postulate the unity and indivisibility of the concepts of Commercial Discovery and Development Lease. They shall apply uniformly to Oil and Gas unless otherwise specified. (iii) CONTRACTOR shall give notice of a Commercial Discovery to EGPC immediately after the discovery is considered by CONTRACTOR to be worthy of commercial development but in any event with respect to a Commercial Oil Well not later than thirty (30) days following the completion of the second appraisal well or twelve (12) months following the date of the discovery of the Commercial Oil Well, whichever is earlier or with respect to a Commercial Gas Well not later than twenty four (24) months following the date of the discovery of the Commercial Gas Well (unless EGPC agrees that such period may be extended) except that CONTRACTOR shall also have the right to give such notice of Commercial Discovery with respect to any reservoir or reservoirs even if the well or xxxxx thereon are not "Commercial" within the definition of "Commercial Well" if, in its opinion, a reservoir or a group of reservoirs, considered collectively, could be worthy of commercial development. It is understood that, any Crude Oil produced from an under-testing well in the Area before it is converted to a Development Lease, either considered Commercial or non-commercial Well, and not used in petroleum operations, is 100% owned by EGPC and not subject to Article VII. CONTRACTOR may also give a notice of a Commercial Oil Discovery in the event it wishes to undertake a Gas Recycling Project. A notice of Commercial Gas Discovery shall contain all detailed particulars of the discovery and especially the area of Gas reserves, the estimated production potential and profile and field life. Within sixty (60) days following receipt of a notice of a Commercial Oil or Gas Discovery, EGPC and CONTRACTOR shall meet and review all appropriate data with a view to mutually agreeing upon the existence of a Commercial Discovery. The date of Commercial Discovery shall be the date EGPC and CONTRACTOR jointly agree in writing that a Commercial Discovery exists. (iv) If Crude Oil or Gas is discovered but is not deemed by CONTRACTOR to be a Commercial Oil / Gas Discovery under the above provisions of this paragraph (c), or EGPC shall one (1) month after the expiration of the period specified above within which CONTRACTOR can give notice of a Commercial Oil/ Gas Oil Discovery, or thirteen (13) months after the completion of a well not considered by CONTRACTOR to be a "Commercial Oil Well" or after the expiration of twenty five (25) months after the completion of a well not considered by CONTRACTOR to be a "Commercial Gas Well", EGPC shall have the right, following sixty (60) days notice in writing to CONTRACTOR, at its sole cost, risk and expense, to develop, produce and dispose of all Crude Oil or Gas from the geological feature on which the well has been drilled. Said notice shall state the specific area covering said geological feature to be developed, the xxxxx to be drilled, the production facilities to be installed and EGPC's estimated cost thereof. Within thirty (30) days after receipt of said notice CONTRACTOR may, in writing, elect to develop such area as provided for in the case of Commercial Discovery hereunder. In such event all terms of this Agreement shall continue to apply to the specified area. If CONTRACTOR elects not to develop such area, the specific area covering said geological feature shall be set aside for sole risk operations by EGPC, such area to be mutually agreed upon by EGPC and CONTRACTOR on the basis of good Petroleum petroleum industry practice. EGPC shall be entitled to perform or in the event Operating Company has come into existence, to have Operating Company perform such operations for the account of EGPC and at EGPC's sole cost, risk and expense or by any other means deemed to be appropriate by EGPC for developing such discoveryexpense. When EGPC has recovered from the Crude Oil / Gas produced from such specific area a quantity of Crude Oil/Gas Oil equal in value to three hundred percent (300 300%) of the cost it has incurred in carrying out the sole risk operations. , CONTRACTOR can shall have the option, only in the event of EGPC's approval or in case there has been a separate Commercial Oil / Gas Discovery, elsewhere within the Area, to share in further development and production of that specific area upon paying EGPC one hundred percent (100%) of such costs incurred by EGPC. Such one hundred percent (100%) payment shall not be recovered by CONTRACTOR. Immediately following such payment the specific area shall either (i) revert to the status of an ordinary Development Lease under this Agreement and thereafter shall be operated in accordance with the terms hereof; or (ii) alternatively, in the event that at such time EGPC or its Affiliated Company is conducting Development operations in the area at its sole expense and EGPC elects to continue operating, the area shall remain set aside and CONTRACTOR shall only be entitled to its production sharing percentages of the Crude Oil / Gas as specified in Article VII (b). The sole risk Crude Oil/Gas Oil shall be valued in the manner provided in Article VII (c). In the event of any termination of this Agreement under the provisions of Article III (b), this Agreement shall, however, continue to apply to EGPC's operations operation of any sole risk venture hereunder, although such Agreement shall have been terminated with respect to CONTRACTOR pursuant to the provisions of Article III (b)) .

Commercial Discovery. (i) A Commercial Discovery - whether of Oil or Gas - may consist of one producing reservoir or a group of producing reservoirs which is worthy of being developed commercially. After discovery of a Commercial Oil or Gas Well CONTRACTOR shall, unless otherwise agreed upon with EGPC, undertake as part of its Exploration program the appraisal of the discovery by drilling one or more appraisal xxxxx, to determine whether such discovery is worthy of being developed commercially, taking into consideration the recoverable reserves, production, pipeline pipelines and terminal facilities required, estimated Petroleum prices, and all other relevant technical and economic factors. (ii) The provisions laid down herein postulate the unity and indivisibility of the concepts of Commercial Discovery and Development Lease. They shall apply uniformly to Oil and Gas unless otherwise specified.. "West Gharib Concession 20-F" (iii) CONTRACTOR shall give notice of a Commercial Discovery to EGPC immediately after the discovery is considered by CONTRACTOR to be worthy of commercial development but in any event with respect to a Commercial Oil Well not later than thirty (30) days following the completion of the second appraisal well or twelve (12) months following the date of the discovery of the Commercial Oil Well, whichever is earlier or with respect to a Commercial Gas Well not later than twenty four (24) months following the date of the discovery of the Commercial Gas Well (unless EGPC agrees that such period may be extended) ), except that CONTRACTOR shall also have the right to give such notice of Commercial Discovery with respect to any reservoir or reservoirs even if the well or xxxxx thereon are not "Commercial" within the definition of the "Commercial Well" if, in its opinion, a reservoir or a group of reservoirs, considered collectively, could be worthy of commercial development. It is understood that, any Crude Oil produced from an under-testing well in the Area before it is converted to a Development Lease, either considered Commercial or non-commercial Well, and not used in petroleum operations, is 100% owned by EGPC and not subject to Article VII. CONTRACTOR may also give a notice of a Commercial Oil Discovery in the event it wishes to undertake a Gas Recycling Projectgas recycling project. A notice of Commercial Gas Discovery shall contain all detailed particulars of the discovery and especially the area of Gas reserves, the estimated production potential and profile and field life. Within sixty (60) days following receipt of a notice of a Commercial Oil or Gas Discovery, EGPC and CONTRACTOR shall meet and review all appropriate data with a view to mutually agreeing upon the existence of a Commercial Commercial. Discovery. The date of Commercial Discovery shall be the date EGPC and CONTRACTOR jointly agree in writing that a Commercial Discovery exists. (iv) If Crude Oil or Gas is discovered but is not deemed by CONTRACTOR to be a Commercial Oil / Gas Discovery under the above provisions of this paragraph (c), or EGPC shall one (1) month after the expiration of the period specified above within which CONTRACTOR can give notice of a Commercial Oil/ Gas Oil Discovery, or thirteen (13) months after the completion of a well not considered by CONTRACTOR to be a "Commercial Oil Well" or after the expiration of twenty five (25) months after the completion of a well not considered by CONTRACTOR to be a "Commercial Gas Well", EGPC shall have the right, following sixty (60) days notice in writing to CONTRACTOR, at its sole cost, risk and expense, to develop, produce and dispose of all Crude Oil or Gas from the geological feature on which the well has been drilled. Said notice shall state the specific area covering said geological feature to be developed, the xxxxx to be drilled, the production facilities to be installed and EGPC's estimated cost thereof. Within thirty (30) days after receipt of said notice CONTRACTOR may, in writing, elect to develop such area as provided for in the case of Commercial Discovery hereunder. In such event all terms of this Agreement shall continue to apply to the specified area. If CONTRACTOR elects not to develop such area, the specific area covering said geological feature shall be set aside for sole risk operations by EGPC, such area to be mutually agreed upon by EGPC and CONTRACTOR on the basis of good Petroleum petroleum industry practice. EGPC shall be entitled to perform or in the event Operating Company has come into existence, to have Operating Company perform such operations for the account of EGPC and at EGPC's sole cost, risk and expense or by any other means deemed to be appropriate by EGPC for developing such discoveryexpense. When EGPC has recovered from the Crude Oil / Gas produced from such specific area a quantity of Crude Oil/Gas Oil equal in value to three hundred percent (300 300%) of the cost it has incurred in carrying out the sole risk operations. , CONTRACTOR can shall have the option, only in the event of EGPC's approval or in case there has been a separate Commercial Oil / Gas Discovery, elsewhere within the Area, to share in further development and production of that specific area upon paying EGPC one hundred percent (100%) of such costs incurred by EGPC. "West Gharib Concession 20-F" Such one hundred percent (100%) payment shall not be recovered by CONTRACTOR. Immediately following such payment the specific area shall either (i) revert to the status of an ordinary Development development Lease under this Agreement and thereafter shall be operated in accordance with the terms hereof; : or (ii) alternatively, in the event that at such time EGPC or its Affiliated Company is conducting Development operations in the area at its sole expense and EGPC elects to continue operating, the area shall remain set aside and CONTRACTOR shall only be entitled to its production sharing percentages of the Crude Oil / Gas as specified in Article VII (b). The sole risk Crude Oil/Gas Oil shall be valued in the manner provided in Article VII (c). In the event of any termination of this Agreement under the provisions of Article III (b), this Agreement shall, however, continue to apply to EGPC's operations of any sole risk venture hereunder, although such Agreement shall have been terminated with respect to CONTRACTOR pursuant to the provisions of Article III (b).

Commercial Discovery. (i) A Commercial Discovery - Discovery" whether of Oil or Gas - may consist of one one (1) producing reservoir or a group of producing reservoirs which is worthy of being developed commercially. After discovery of a Commercial Oil or Gas Well Well, CONTRACTOR shall, unless otherwise agreed upon with EGPCEGAS, undertake as part of its Exploration program the appraisal of the discovery by drilling one one (1) or more appraisal xxxxx, to determine whether such discovery is worthy of being developed commercially, taking into consideration the recoverable reserves, production, pipeline and terminal facilities required, estimated Petroleum prices, and all other relevant technical and economic factors. (ii) The provisions laid down herein postulate the unity and indivisibility of the concepts of Commercial Discovery and Development Lease. They shall apply uniformly to Oil and Gas Gas, unless otherwise specified. (iii) CONTRACTOR shall give notice of a Commercial Discovery to EGPC EGAS immediately after the discovery is considered by CONTRACTOR to be worthy of commercial development development, but in any event event, with respect to a Commercial Oil Well Well, not later than thirty (30) days following the completion of the second appraisal well or twelve (12) months following the date of the discovery of the Commercial Oil Well, whichever is earlier earlier; or with respect to a Commercial Gas Well Well, not later than twenty four (24) months following from the date of the discovery of the Commercial Gas Well (unless EGPC EGAS agrees that to extend such period may be extended) except that either for a Commercial Oil or Gas Well). CONTRACTOR shall also have the right to give such notice of Commercial Discovery with respect to any reservoir or reservoirs even reservoir(s) if the well or xxxxx thereon are not "Commercial" within the definition of "Commercial Well" ifwell(s), thereon, in its opinion, a reservoir or a group of reservoirs, considered collectively, collectively could be worthy of commercial developmentdevelopment after EGAS’s approval. It is understood thatWithout prejudice to the provisions of Article (V)(a) fourth (4th) paragraph, any Crude if CONTRACTOR achieves a Commercial Discovery either for Oil produced from an under-testing well in or Gas within a period less than the Area period mentioned above and before it is converted the end of the last Exploration period, the CONTRACTOR should submit to a Development Lease, either considered Commercial or non-commercial WellEGAS such notice thirty (30) days before the end of the last Exploration period, and not used in petroleum operationscase CONTRACTOR didn’t submit such notice within such period, is 100% owned EGAS shall have the right to exercise the sole risk venture by EGPC any other means deemed to be appropriate by EGAS and not subject the CONTRACTOR has no right to Article VIIhave recourse against EGAS for compensation or expenditures or costs or any share in production. CONTRACTOR may also give a notice of a Commercial Discovery of Oil Discovery in the event it wishes to undertake a Gas Recycling Projectrecycling project. A notice of Commercial Discovery of Gas Discovery shall contain all detailed particulars of the discovery and discovery, especially the area of Gas containing recoverable reserves, the estimated production potential and profile and profile, field life. Within sixty (60) days following receipt of a notice of a Commercial Oil or , Gas Discovery, EGPC and CONTRACTOR shall meet and review all appropriate data with a view to mutually agreeing upon the existence of a Commercial Discovery. The date of Commercial Discovery shall be the date EGPC and CONTRACTOR jointly agree in writing that a Commercial Discovery exists. (iv) If Crude Oil or Gas is discovered but is not deemed by CONTRACTOR to be a Commercial Oil / Gas Discovery under the above provisions of this paragraph (c), or one (1) month after the expiration of the period specified above within which CONTRACTOR can give notice of a Commercial Oil/ Gas Discovery, or thirteen (13) months after the completion of a well not considered by CONTRACTOR to be a "Commercial Oil Well" or after the expiration of twenty five (25) months after the completion of a well not considered by CONTRACTOR to be a "Commercial Gas Well", EGPC shall have the right, following sixty (60) days notice in writing to CONTRACTOR, at its sole cost, risk and expense, to develop, produce and dispose of all Crude Oil or Gas from the geological feature on which the well has been drilled. Said notice shall state the specific area covering said geological feature to be developedanalysis, the xxxxx to be drilledrequired pipeline and production facilities, the production facilities to be installed estimated Development costs, estimated Petroleum prices and EGPC's estimated cost thereof. Within thirty all other relevant technical and economic factors (30) days after receipt of said notice CONTRACTOR may, in writing, elect to develop such area as provided for in the case of Commercial Discovery hereunder. In such event all terms of this Agreement shall continue to apply to the specified area. If CONTRACTOR elects not to develop such area, the specific area covering said geological feature shall be set aside for sole risk operations by EGPC, such area to be mutually unless otherwise agreed upon by EGPC and CONTRACTOR on the basis of good Petroleum industry practice. EGPC shall be entitled to perform or in the event Operating Company has come into existence, to have Operating Company perform such operations for the account of EGPC and at EGPC's sole cost, risk and expense or by any other means deemed to be appropriate by EGPC for developing such discovery. When EGPC has recovered from the Crude Oil / Gas produced from such specific area a quantity of Crude Oil/Gas equal in value to three hundred percent (300 %) of the cost it has incurred in carrying out the sole risk operations. CONTRACTOR can have the option, only in the event of EGPC's approval or in case there has been a separate Commercial Oil / Gas Discovery, elsewhere within the Area, to share in further development and production of that specific area upon paying EGPC one hundred percent (100%) of such costs incurred by EGPC. Such one hundred percent (100%) payment shall not be recovered by CONTRACTOR. Immediately following such payment the specific area shall either (i) revert to the status of an ordinary Development Lease under this Agreement and thereafter shall be operated in accordance with the terms hereof; or (ii) alternatively, in the event that at such time EGPC or its Affiliated Company is conducting Development operations in the area at its sole expense and EGPC elects to continue operating, the area shall remain set aside and CONTRACTOR shall only be entitled to its production sharing percentages of the Crude Oil / Gas as specified in Article VII (b). The sole risk Crude Oil/Gas shall be valued in the manner provided in Article VII (c). In the event of any termination of this Agreement under the provisions of Article III (b), this Agreement shall, however, continue to apply to EGPC's operations of any sole risk venture hereunder, although such Agreement shall have been terminated with respect to CONTRACTOR pursuant to the provisions of Article III (bEGAS).

Commercial Discovery. (i) A Commercial Discovery - whether of Oil or Gas - may consist of one producing reservoir or a group of producing reservoirs which is worthy of being developed commercially. After discovery of a Commercial Oil or Gas Well CONTRACTOR shall, unless otherwise agreed upon with EGPC, undertake as part of its Exploration program the appraisal of the discovery by drilling one or more appraisal xxxxx, to determine whether such discovery is worthy of being developed commercially, taking into consideration the recoverable reserves, production, pipeline and terminal facilities required, estimated Petroleum prices, and all other relevant technical and economic factors. (ii) The provisions laid down herein postulate the unity and indivisibility of the concepts of Commercial Discovery and Development Lease. They shall apply uniformly to Oil and Gas unless otherwise specified. (iii) CONTRACTOR shall give notice of a Commercial Discovery to EGPC immediately after the discovery is considered by CONTRACTOR to be worthy of commercial development but in any event with respect to a Commercial Oil Well not later than thirty (30) days following the completion of the second appraisal well or twelve (12) months following the date of the discovery of the Commercial Oil Well, whichever is earlier or with respect to a Commercial Gas Well not later than twenty four (24) months following the date of the discovery of the Commercial Gas Well (unless EGPC agrees that such period may be extended) except that CONTRACTOR shall also have the right to give such notice of Commercial Discovery with respect to any reservoir or reservoirs even if the well or xxxxx thereon are not "Commercial" within the definition of "Commercial Well" if, in its opinion, a reservoir or a group of reservoirs, considered collectively, could be worthy of commercial development. It is understood that, any Crude Oil produced from an under-testing well in the Area before it is converted to a Development Lease, either considered Commercial or non-commercial Commercial Well, and not used in petroleum Petroleum operations, is 100% owned by EGPC and not subject to Article VII. CONTRACTOR may also give a notice of a Commercial Oil Discovery in the event it wishes to undertake a Gas Recycling Project. A notice of Commercial Gas Discovery shall contain all detailed particulars of the discovery and especially the area of Gas reserves, the estimated production potential and profile and field life. Within sixty (60) days following receipt of a notice of a Commercial Oil or Gas Discovery, EGPC and CONTRACTOR shall meet and review all appropriate data with a view to mutually agreeing upon the existence of a Commercial Discovery. The date of Commercial Discovery shall be the date EGPC and CONTRACTOR jointly agree in writing that a Commercial Discovery exists. (iv) If Crude Oil or Gas is discovered but is not deemed by CONTRACTOR to be a Commercial Oil / Gas Discovery under the above provisions of this paragraph (c), or one one (1) month after the expiration of the period specified above within which CONTRACTOR can give notice of a Commercial Oil/ Gas Discovery, or thirteen (13) months after the completion of a well not considered by CONTRACTOR to be a "Commercial Oil Well" or after the expiration of twenty five (25) months after the completion of a well not considered by CONTRACTOR to be a "Commercial Gas Well", EGPC shall have the right, following sixty (60) days notice in writing to CONTRACTOR, at its sole cost, risk and expense, to develop, produce and dispose of all Crude Oil or Gas from the geological feature on which the well has been drilled. Said notice shall state the specific area covering said geological feature to be developed, the xxxxx to be drilled, the production facilities to be installed and EGPC's estimated cost thereof. Within thirty (30) days after receipt of said notice CONTRACTOR may, in writing, elect to develop such area as provided for in the case of Commercial Discovery hereunder. In such event all terms of this Agreement shall continue to apply to the specified area. If CONTRACTOR elects not to develop such area, the specific area covering said geological feature shall be set aside for sole risk operations by EGPC, such area to be mutually agreed upon by EGPC and CONTRACTOR on the basis of good Petroleum industry practice. EGPC shall be entitled to perform or in the event Operating Company has come into existence, to have Operating Company perform such operations for the account of EGPC and at EGPC's sole cost, risk and expense or by any other means deemed to be appropriate by EGPC for developing such discovery. When EGPC has recovered from the Crude Oil / Oil/ Gas produced from such specific area a quantity of Crude Oil/Gas equal in value to three hundred percent (300 %) of the cost it has incurred in carrying out the sole risk operations. CONTRACTOR can have the option, only in the event of EGPC's approval or in case there has been a separate Commercial Oil / Gas Discovery, elsewhere within the Area, to share in further development and production of that specific area upon paying EGPC one hundred percent (100%) of such costs incurred by EGPC. Such one hundred percent (100%) payment shall not be recovered by CONTRACTOR. Immediately following such payment the specific area shall either (i) revert to the status of an ordinary Development Lease under this Agreement and thereafter shall be operated in accordance with the terms hereof; or (ii) alternatively, in the event that at such time EGPC or its Affiliated Company is conducting Development operations in the area at its sole expense and EGPC elects to continue operating, the area shall remain set aside and CONTRACTOR shall only be entitled to its production sharing percentages of the Crude Oil / Gas as specified in Article VII (b). The sole risk Crude Oil/Gas shall be valued in the manner provided in Article VII (c). In the event of any termination of this Agreement under the provisions of Article III (b), this Agreement shall, however, continue to apply to EGPC's operations of any sole risk venture hereunder, although such Agreement shall have been terminated with respect to CONTRACTOR pursuant to the provisions of Article III (b).

Commercial Discovery. (i) A Commercial Discovery - whether of Oil or Gas - may consist of one producing reservoir or a group of producing reservoirs which is worthy of being developed commercially. After discovery of a Commercial Oil or Gas Well CONTRACTOR shall, unless otherwise agreed upon with EGPC, undertake as part of its Exploration program the appraisal of the discovery by drilling one or more appraisal xxxxx, to determine whether such discovery is worthy of being developed commercially, taking into consideration the recoverable reserves, production, pipeline and terminal facilities required, estimated Petroleum prices, and all other relevant technical and economic factors. (ii) The provisions laid down herein postulate the unity and indivisibility of the concepts of Commercial Discovery and Development Lease. They shall apply uniformly to Oil and Gas unless otherwise specified. (iii) CONTRACTOR shall give notice of a Commercial Discovery to EGPC immediately after the discovery is considered by CONTRACTOR to be worthy of commercial development but in any event with respect to a Commercial Oil Well not later than thirty (30) days following the completion of the second appraisal well or twelve (12) months following the date of the discovery of the Commercial Oil Well, whichever is earlier or with respect to a Commercial Gas Well not later than twenty four (24) months following the date of the discovery of the Commercial Gas Well (unless EGPC agrees that such period may be extended) except that CONTRACTOR shall also have the right to give such notice of Commercial Discovery with respect to any reservoir or reservoirs even if the well or xxxxx thereon are not "Commercial" within the definition of "Commercial Well" if, in its opinion, a reservoir or a group of reservoirs, considered collectively, could be worthy of commercial development. It is understood that, any Crude Oil produced from an under-testing well in the Area before it is converted to a Development Lease, either considered Commercial or non-commercial Well, and not used in petroleum operations, is 100% owned by EGPC and not subject to Article VII. CONTRACTOR may also give a notice of a Commercial Oil Discovery in the event it wishes to undertake a Gas Recycling Project. A notice of Commercial Gas Discovery shall contain all detailed particulars of the discovery and especially the area of Gas reserves, the estimated production potential and profile and field life. Within sixty (60) days following receipt of a notice of a Commercial Oil or Gas Discovery, EGPC and CONTRACTOR shall meet and review all appropriate data with a view to mutually agreeing upon the existence of a Commercial Discovery. The date of Commercial Discovery shall be the date EGPC and CONTRACTOR jointly agree in writing that a Commercial Discovery exists. (iv) If Crude Oil or Gas is discovered but is not deemed by CONTRACTOR to be a Commercial Oil / Gas Discovery under the above provisions of this paragraph (c), or EGPC shall one (1) month after the expiration of the period specified above within which CONTRACTOR can give notice of a Commercial Oil/ Gas Oil Discovery, or thirteen (13) months after the completion of a well not considered by CONTRACTOR to be a "Commercial Oil Well" or after the expiration of twenty five (25) months after the completion of a well not considered by CONTRACTOR to be a "Commercial Gas Well", EGPC shall have the right, following sixty (60) days notice in writing to CONTRACTOR, at its sole cost, risk and expense, to develop, produce and dispose of all Crude Oil or Gas from the geological feature on which the well has been drilled. Said notice shall state the specific area covering said geological feature to be developed, the xxxxx to be drilled, the production facilities to be installed and EGPC's estimated cost thereof. Within thirty (30) days after receipt of said notice CONTRACTOR may, in writing, elect to develop such area as provided for in the case of Commercial Discovery hereunder. In such event all terms of this Agreement shall continue to apply to the specified area. If CONTRACTOR elects not to develop such area, the specific area covering said geological feature shall be set aside for sole risk operations by EGPC, such area to be mutually agreed upon by EGPC and CONTRACTOR on the basis of good Petroleum petroleum industry practice. EGPC shall be entitled to perform or in the event Operating Company has come into existence, to have Operating Company perform such operations for the account of EGPC and at EGPC's sole cost, risk and expense or by any other means deemed to be appropriate by EGPC for developing such discoveryexpense. When EGPC has recovered from the Crude Oil / Gas produced from such specific area a quantity of Crude Oil/Gas Oil equal in value to three hundred percent (300 300%) of the cost it has incurred in carrying out the sole risk operations. , CONTRACTOR can shall have the option, only in the event of EGPC's approval or in case there has been a separate Commercial Oil / Gas Discovery, elsewhere within the Area, to share in further development and production of that specific area upon paying EGPC one hundred percent (100%) of such costs incurred by EGPC. Such one hundred percent (100%) payment shall not be recovered by CONTRACTOR. Immediately following such payment the specific area shall either (i) revert to the status of an ordinary Development Lease under this Agreement and thereafter shall be operated in accordance with the terms hereof; or (ii) alternatively, in the event that at such time EGPC or its Affiliated Company is conducting Development operations in the area at its sole expense and EGPC elects to continue operating, the area shall remain set aside and CONTRACTOR shall only be entitled to its production sharing percentages of the Crude Oil / Gas as specified in Article VII (b). The sole risk Crude Oil/Gas Oil shall be valued in the manner provided in Article VII (c). In the event of any termination of this Agreement under the provisions of Article III (b), this Agreement shall, however, continue to apply to EGPC's operations of any sole risk venture hereunder, although such Agreement shall have been terminated with respect to CONTRACTOR pursuant to the provisions of Article III (b)) .

Commercial Discovery. (i) A Commercial Discovery - Discovery- whether of Oil or Gas - Gas- may consist of one producing reservoir or a group of producing reservoirs which is worthy of being developed commercially. After discovery of a Commercial Oil or Gas Well CONTRACTOR shall, unless otherwise agreed upon with EGPC, undertake as part of its Exploration program the appraisal of the discovery by drilling one or more appraisal xxxxx, to determine whether such discovery is worthy of being developed commercially, taking into consideration the recoverable reserves, production, pipeline pipeline, and terminal facilities required, estimated Petroleum prices, and all other relevant technical and economic factors. (ii) The provisions laid down herein postulate the unity and indivisibility of the concepts of Commercial Discovery and Development LeaseLeases. They shall apply uniformly to Oil and Gas unless otherwise specified. (iii) CONTRACTOR shall give notice of a Commercial Discovery to EGPC immediately after the discovery is considered by CONTRACTOR to be worthy of commercial development development, but in any event with respect to a Commercial Oil Well not later than thirty (30) days following the completion of the second appraisal well well, or twelve (12) months following the date of the discovery of the Commercial Oil Well, (unless EGPC agrees that such period may be extended), whichever is earlier earlier, or with respect to a Commercial Gas Well not later than twenty twenty-four (24) months following the date of the discovery of the Commercial Gas Well (unless EGPC agrees that such period may be extended) except that CONTRACTOR shall also have the right to give such notice of Commercial Discovery with respect to any reservoir or reservoirs even if the well or xxxxx thereon are not "Commercial" within the definition of the "Commercial Well" if, in its opinion, a reservoir or a group of reservoirs, considered collectively, could be worthy of commercial development. It is understood that, any Crude Oil produced from an under-testing well in the Area before it is converted to a Development Lease, either considered Commercial or non-commercial Well, and not used in petroleum operations, is 100% owned by EGPC and not subject to Article VII. CONTRACTOR may also give a notice of a Commercial Oil Discovery in the event it wishes to undertake a Gas Recycling Project. A notice of Commercial Gas Discovery shall contain all detailed particulars of the discovery and especially the area of Gas reserves, the estimated production potential and profile and field life. Within sixty (60) days following receipt of a notice of a Commercial Oil or Gas Discovery, EGPC and CONTRACTOR shall meet and review all appropriate data with a view to mutually agreeing upon the existence of a Commercial Discovery. The date of Commercial Discovery shall be the date EGPC and CONTRACTOR jointly agree in writing that a Commercial Discovery exists. (iv) If Crude Oil or Gas is discovered but is not deemed by CONTRACTOR to be a Commercial Oil / Gas Discovery under the above provisions of this paragraph (c), or one (1) month after the expiration of the period specified above within which CONTRACTOR can give notice of a Commercial Oil/ Gas Discovery, or thirteen (13) months after the completion of a well not considered by CONTRACTOR to be a "Commercial Oil Well" or after the expiration of twenty five (25) months after the completion of a well not considered by CONTRACTOR to be a "Commercial Gas Well", EGPC shall have the right, following sixty (60) days notice in writing to CONTRACTOR, at its sole cost, risk and expense, to develop, produce and dispose of all Crude Oil or Gas from the geological feature on which the well has been drilled. Said notice shall state the specific area covering said geological feature to be developed, the xxxxx to be drilled, the production facilities to be installed and EGPC's estimated cost thereof. Within thirty (30) days after receipt of said notice CONTRACTOR may, in writing, elect to develop such area as provided for in the case of Commercial Discovery hereunder. In such event all terms of this Agreement shall continue to apply to the specified area. If CONTRACTOR elects not to develop such area, the specific area covering said geological feature shall be set aside for sole risk operations by EGPC, such area to be mutually agreed upon by EGPC and CONTRACTOR on the basis of good Petroleum industry practice. EGPC shall be entitled to perform or in the event Operating Company has come into existence, to have Operating Company perform such operations for the account of EGPC and at EGPC's sole cost, risk and expense or by any other means deemed to be appropriate by EGPC for developing such discovery. When EGPC has recovered from the Crude Oil / Gas produced from such specific area a quantity of Crude Oil/Gas equal in value to three hundred percent (300 %) of the cost it has incurred in carrying out the sole risk operations. CONTRACTOR can have the option, only in the event of EGPC's approval or in case there has been a separate Commercial Oil / Gas Discovery, elsewhere within the Area, to share in further development and production of that specific area upon paying EGPC one hundred percent (100%) of such costs incurred by EGPC. Such one hundred percent (100%) payment shall not be recovered by CONTRACTOR. Immediately following such payment the specific area shall either (i) revert to the status of an ordinary Development Lease under this Agreement and thereafter shall be operated in accordance with the terms hereof; or (ii) alternatively, in the event that at such time EGPC or its Affiliated Company is conducting Development operations in the area at its sole expense and EGPC elects to continue operating, the area shall remain set aside and CONTRACTOR shall only be entitled to its production sharing percentages of the Crude Oil / Gas as specified in Article VII (b). The sole risk Crude Oil/Gas shall be valued in the manner provided in Article VII (c). In the event of any termination of this Agreement under the provisions of Article III (b), this Agreement shall, however, continue to apply to EGPC's operations of any sole risk venture hereunder, although such Agreement shall have been terminated with respect to CONTRACTOR pursuant to the provisions of Article III (b).

Commercial Discovery. (i) A Commercial Discovery - whether of Oil or Gas - may consist of one producing reservoir or a group of producing reservoirs which is worthy of being developed commercially. After discovery of a Commercial Oil or Gas Well CONTRACTOR shall, unless otherwise agreed upon with EGPCGANOPE, undertake as part of its Exploration program the appraisal of the discovery by drilling one or more appraisal xxxxx, to determine whether such discovery is worthy of being developed commercially, taking into consideration the recoverable reserves, production, pipeline and terminal facilities required, estimated Petroleum prices, and all other relevant technical and economic factorsfactors unless otherwise agreed upon by GANOPE. (ii) The provisions laid down herein postulate the unity and indivisibility of the concepts of Commercial Discovery commercial discovery and Development Lease. development lease, They shall apply uniformly to Oil and Gas unless otherwise specified. (iii) CONTRACTOR shall give notice of a Commercial Discovery to EGPC GANOPE immediately after the discovery is considered by CONTRACTOR to be worthy of commercial development but in any event with respect to a Commercial Oil Well not later than thirty (30) days following the completion of the second appraisal well well, or twelve (12) months following the date of the discovery of the Commercial Oil Well, whichever is earlier or with respect to a Commercial Gas Well not later than twenty four (24) months following the date of the discovery of the Commercial Gas Well (unless EGPC GANOPE agrees that such period may be extended) except that ), CONTRACTOR shall also have the right to give such notice of Commercial Discovery with respect to any reservoir or reservoirs even (s) if the well or xxxxx well(s) thereon are not "Commercial" within the definition of "Commercial Well" if, in its opinion, a reservoir or a group of reservoirs, considered collectively, collectively could be worthy of commercial development. development after GANOPE’s approval. (iv) It is understood that, any Crude Oil produced from an under-testing a well in the Area before it is converted to a Development Lease, either considered Commercial or non-commercial non- Commercial Well, and not used in petroleum Petroleum operations, is 100% owned by EGPC GANOPE and not subject to Article VII. CONTRACTOR may also give a notice of a Commercial Oil Discovery in the event it wishes to undertake a Gas Recycling Project. , A notice of Commercial Gas Discovery shall contain all detailed particulars of the discovery and especially for example but not limited to the area Area of Gas reserves, the estimated production potential and potential, profile and field lifelife (unless otherwise agreed upon by GANOPE). Within sixty (60) days following receipt of a notice of a Commercial Oil or Gas Discovery, EGPC GANOPE and CONTRACTOR shall meet and review all appropriate data with a view to mutually agreeing upon the existence of a Commercial Discovery. The date of Commercial Discovery shall be the date EGPC GANOPE and CONTRACTOR jointly agree in writing that a Commercial Discovery exists. (ivv) If Crude Oil or Gas is discovered but is not deemed by CONTRACTOR to be a Commercial Oil / or Gas Discovery under the above provisions of this paragraph (c), or after one (1) month after the expiration of from the period specified above within which CONTRACTOR can give notice of a Commercial Oil/ Gas DiscoveryOil Discovery , or thirteen (13) months after the completion of a well not considered by CONTRACTOR to be a "Commercial Oil Well" ,or after the expiration of twenty five (25) months after the completion of a well not considered by CONTRACTOR to be a "Commercial Gas Well", EGPC shall have the right, following sixty (60) days notice in writing to CONTRACTOR, at its sole cost, risk and expense, to develop, produce and dispose of all Crude Oil or Gas from the geological feature on which the well has been drilled. Said notice shall state the specific area covering said geological feature to be developed, the xxxxx to be drilled, the production facilities to be installed and EGPC's estimated cost thereof. Within thirty (30) days after receipt of said notice CONTRACTOR may, in writing, elect to develop such area as provided for in the case of Commercial Discovery hereunder. In such event all terms of this Agreement shall continue to apply to the specified area. If CONTRACTOR elects not to develop such area, the specific area covering said geological feature shall be set aside for sole risk operations by EGPC, such area to be mutually agreed upon by EGPC and CONTRACTOR on the basis of good Petroleum industry practice. EGPC shall be entitled to perform or in the event Operating Company has come into existence, to have Operating Company perform such operations for the account of EGPC and at EGPC's sole cost, risk and expense or by any other means deemed to be appropriate by EGPC for developing such discovery. When EGPC has recovered from the Crude Oil / Gas produced from such specific area a quantity of Crude Oil/Gas equal in value to three hundred percent (300 %) of the cost it has incurred in carrying out the sole risk operations. CONTRACTOR can have the option, only in the event of EGPC's approval or in case there has been a separate Commercial Oil / Gas Discovery, elsewhere within the Area, to share in further development and production of that specific area upon paying EGPC one hundred percent (100%) of such costs incurred by EGPC. Such one hundred percent (100%) payment shall not be recovered by CONTRACTOR. Immediately following such payment the specific area shall either (i) revert to the status of an ordinary Development Lease under this Agreement and thereafter shall be operated in accordance with the terms hereof; or (ii) alternatively, in the event that at such time EGPC or its Affiliated Company is conducting Development operations in the area at its sole expense and EGPC elects to continue operating, the area shall remain set aside and CONTRACTOR shall only be entitled to its production sharing percentages of the Crude Oil / Gas as specified in Article VII (b). The sole risk Crude Oil/Gas shall be valued in the manner provided in Article VII (c). In the event of any termination of this Agreement under the provisions of Article III (b), this Agreement shall, however, continue to apply to EGPC's operations of any sole risk venture hereunder, although such Agreement shall have been terminated with respect to CONTRACTOR pursuant to the provisions of Article III (b).five

Commercial Discovery. (i) A Commercial Discovery - whether of Oil or Gas - may consist of one producing reservoir or a group of producing reservoirs which is worthy of being developed commercially. After discovery of a Commercial Oil or Gas Well CONTRACTOR shall, unless otherwise agreed upon with EGPC, undertake as part of its Exploration program the appraisal of the discovery by drilling one or more appraisal xxxxxwxxxx, to determine whether such discovery is worthy of being developed commercially, taking into consideration the recoverable reserves, production, pipeline pipelines and terminal facilities required, estimated Petroleum prices, and all other relevant technical and economic factors. (ii) The provisions laid down herein postulate the unity and indivisibility of the concepts of Commercial Discovery and Development Lease. They shall apply uniformly to Oil and Gas unless otherwise specified. (iii) CONTRACTOR shall give notice of a Commercial Discovery to EGPC immediately after the discovery is considered by CONTRACTOR to be worthy of commercial development but development. But in any event with respect to a Commercial Oil Well well not later than thirty (30) days following the completion of the second appraisal well or twelve (12) months following the discovery date of the discovery of the Commercial Oil Well, whichever is earlier or with respect to a Commercial Gas Well well not later than twenty four (24) months following the date of the discovery of the Commercial Gas Well (unless EGPC agrees that such period may be extended) except that CONTRACTOR shall also have the right to give such notice of Commercial Discovery with respect to any reservoir or reservoirs even if the well or xxxxx wxxxx thereon are not "Commercial" within the definition of "Commercial Well" if, in its opinion, a reservoir or a group of reservoirs, considered collectively, could be worthy of commercial development. It is understood that, any Crude Oil produced from an under-under testing well in the Area before it is converted to a Development LeaseArea, either considered Commercial or non-commercial Well, Commercial Well and not used in petroleum Petroleum operations, is 100% owned by EGPC and not subject to Article VIIVI. CONTRACTOR may also give a notice of a Commercial Oil Discovery in the event it wishes to undertake a Gas Recycling Project. A notice of Commercial Gas Discovery shall contain all detailed particulars of the discovery and especially the area of Gas reserves, the estimated production potential and profile and field life. Within sixty (60) days following receipt of a notice of a Commercial Oil or Gas Discovery, EGPC and CONTRACTOR shall meet and review all appropriate data with a view to mutually agreeing upon the existence of a Commercial Discovery. The date of Commercial Discovery shall be the date EGPC and CONTRACTOR jointly agree in writing that a Commercial Discovery exists. (iviii) If Crude Oil or Oil/Gas is discovered but is not deemed by CONTRACTOR to be a Commercial Oil / Oil/Gas Discovery under the above provisions of this paragraph (c), or one (1) month after the expiration of the period specified above within which CONTRACTOR can give notice of a Commercial Oil/ Oil/Gas Discovery, or thirteen (13) months after the completion of a well not considered by CONTRACTOR to be a "Commercial Oil Well" or after the expiration of twenty five (25) months after the completion of a well not considered by CONTRACTOR to be a "Commercial Gas Well", EGPC shall have the right, following sixty (60) days days' notice in writing to CONTRACTOR, at its sole cost, risk and expense, to develop, produce and dispose of all Crude Oil or Gas from the geological feature on which the well has been drilled. Said notice shall state the specific area covering said geological feature to be developed, the xxxxx wxxxx to be drilled, the production facilities to be installed and EGPC's estimated cost thereof. Within thirty (30) days after receipt of said notice CONTRACTOR may, in writing, elect to develop such area as provided for in the case of Commercial Discovery hereunder. In such event all terms of this Agreement shall continue to apply to the specified area. If CONTRACTOR elects not to develop such area, the specific area covering said geological feature shall be set aside for sole risk operations by EGPC, such area to be mutually agreed upon by EGPC and CONTRACTOR on the basis of good Petroleum industry practice. EGPC shall be entitled to perform such operations or in the event Operating Company has come into existence, to have Operating Company perform such operations for the account of EGPC and at EGPC's sole cost, risk and expense or by any other means deemed deems to be appropriate by EGPC for developing such discovery. When EGPC has recovered from the Crude Oil / Oil/Gas produced from such specific area a quantity of Crude Oil/Gas equal in value to three hundred percent (300 %) of the cost it has incurred in carrying out the sole risk operations. CONTRACTOR can have the option, only in the event of EGPC's approval or in case there has been a separate Commercial Oil / Oil/Gas Discovery, elsewhere within the Area, to share in further development and production of that specific area upon paying EGPC one hundred percent (100%) of such costs incurred by EGPC. Such one hundred percent (100%) payment shall not be recovered by CONTRACTOR. Immediately following such payment the specific area shall either (i) revert to the status of an ordinary Development Lease under this Agreement and thereafter shall be operated thereafter in accordance with the terms hereof; or (ii) alternatively, in the event that at such time EGPC or its Affiliated Company is conducting Development operations in the area at its sole expense and EGPC elects to continue operating, the area shall remain set aside and CONTRACTOR shall only be entitled to its production sharing percentages of the Crude Oil / Oil/Gas as specified in Article VII VI (b). The sole risk Crude Oil/Gas shall be valued in the manner provided in Article VII VI (c). In the event of any termination of this Agreement under the provisions of Article III (b), this Agreement shall, however, continue to apply to EGPC's operations of any sole risk venture hereunder, although such Agreement shall have been terminated with respect to CONTRACTOR pursuant to the provisions of Article III (b). (d) 1- Upon the discovery of Gas in a Development area hereunder, EGPC and CONTRACTOR shall endeavor with diligence to find adequate markets capable of absorbing the production of Gas and with respect to the local markets, EGPC shall advise CONTRACTOR of the potential outlets for such Gas and the expected annual schedule of demand. Thereafter, EGPC and CONTRACTOR shall meet with a view to assessing whether the outlets for such Gas and other relevant factors warrant the Development and production of the Gas and in case of agreement, the Gas thus made available shall be disposed of to EGPC or EGAS under a long-term Gas Sales Agreement in accordance with and subject to the conditions set forth in Article VI.

Commercial Discovery. (i) A Commercial Discovery - whether of Oil or Gas - may consist of one producing reservoir or a group of producing reservoirs which is worthy of being developed commercially. After discovery of a Commercial Oil or Gas Well CONTRACTOR shall, unless otherwise agreed upon with EGPC, undertake as part of its Exploration program the appraisal of the discovery by drilling one or more appraisal xxxxx, to determine whether such discovery is worthy of being developed commercially, taking into consideration the recoverable reserves, production, pipeline and terminal facilities required, estimated Petroleum prices, and all other relevant technical and economic factors. (ii) The provisions laid down herein postulate the unity and indivisibility of the concepts of Commercial Discovery and Development Lease. They shall apply uniformly to Oil and Gas unless otherwise specified. (iii) CONTRACTOR shall give notice of a Commercial Discovery to EGPC immediately after the discovery is considered by CONTRACTOR to be worthy of commercial development but in any event with respect to a Commercial Oil Well not later than thirty (30) days following the completion of the second appraisal well or twelve (12) months following the date of the discovery of the Commercial Oil Well, whichever is earlier or with respect to a Commercial Gas Well not later than twenty four (24) months following the date of the discovery of the Commercial Gas Well (unless EGPC agrees that such period may be extended) except that CONTRACTOR shall also have the right to give such notice of Commercial Discovery with respect to any reservoir or reservoirs even if the well or xxxxx thereon are not "Commercial" within the definition of "Commercial Well" if, in its opinion, a reservoir or a group of reservoirs, considered collectively, could be worthy of commercial development. It is understood that, any Crude Oil produced from an under-testing well in the Area before it is converted to a Development Lease, either considered Commercial or non-commercial Well, and not used in petroleum operations, is 100% owned by EGPC and not subject to Article VII. CONTRACTOR may also give a notice of a Commercial Oil Discovery in the event it wishes to undertake a Gas Recycling Project. A notice of Commercial Gas Discovery shall contain all detailed particulars of the discovery and especially the area of Gas reserves, the estimated production potential and profile and field life. Within sixty (60) days following receipt of a notice of a Commercial Oil or Gas Discovery, EGPC and CONTRACTOR shall meet and review all appropriate data with a view to mutually agreeing upon the existence of a Commercial Discovery. The date of Commercial Discovery shall be the date EGPC and CONTRACTOR jointly agree in writing that a Commercial Discovery exists. (iv) If Crude Oil or Gas is discovered but is not deemed by CONTRACTOR to be a Commercial Oil / Gas Discovery under the above provisions of this paragraph (c), or EGPC shall one (1) month after the expiration of the period specified above within which CONTRACTOR can give notice of a Commercial Oil/ Gas Oil Discovery, or thirteen (13) months after the completion of a well not considered by CONTRACTOR to be a "Commercial Oil Well" or after the expiration of twenty five (25) months after the completion of a well not considered by CONTRACTOR to be a "Commercial Gas Well", EGPC shall have the right, following sixty (60) days notice in writing to CONTRACTOR, at its sole cost, risk and expense, to develop, produce and dispose of all Crude Oil or Gas from the geological feature on which the well has been drilled. Said notice shall state the specific area covering said geological feature to be developed, the xxxxx to be drilled, the production facilities to be installed and EGPC's estimated cost thereof. Within thirty (30) days after receipt of said notice CONTRACTOR may, in writing, elect to develop such area as provided for in the case of Commercial Discovery hereunder. In such event all terms of this Agreement shall continue to apply to the specified area. If CONTRACTOR elects not to develop such area, the specific area covering said geological feature shall be set aside for sole risk operations by EGPC, such area to be mutually agreed upon by EGPC and CONTRACTOR on the basis of good Petroleum petroleum industry practice. EGPC shall be entitled to perform or in the event Operating Company has come into existence, to have Operating Company perform such operations for the account of EGPC and at EGPC's sole cost, risk and expense or by any other means deemed to be appropriate by EGPC for developing such discoveryexpense. When EGPC has recovered from the Crude Oil / Gas produced from such specific area a quantity of Crude Oil/Gas Oil equal in value to three hundred percent (300 300%) of the cost it has incurred in carrying out the sole risk operations. , CONTRACTOR can shall have the option, only in the event of EGPC's approval or in case there has been a separate Commercial Oil / Gas Discovery, elsewhere within the Area, to share in further development and production of that specific area upon paying EGPC one hundred percent (100%) of such costs incurred by EGPC. Such one hundred percent (100%) payment shall not be recovered by CONTRACTOR. Immediately following such payment the specific area shall either (i) revert to the status of an ordinary Development Lease under this Agreement and thereafter shall be operated in accordance with the terms hereof; or (ii) alternatively, in the event that at such time EGPC or its Affiliated Company is conducting Development operations in the area at its sole expense and EGPC elects to continue operating, the area shall remain set aside and CONTRACTOR shall only be entitled to its production sharing percentages of the Crude Oil / Gas as specified in Article VII (b). The sole risk Crude Oil/Gas shall be valued in the manner provided in Article VII (c). In the event of any termination of this Agreement under the provisions of Article III (b), this Agreement shall, however, continue to apply to EGPC's operations of any sole risk venture hereunder, although such Agreement shall have been terminated with respect to CONTRACTOR pursuant to the provisions of Article III (b).

Commercial Discovery. (i) A Commercial Discovery - whether of Oil or Gas - may consist of one producing reservoir or a group of producing reservoirs which is worthy of being developed commercially. After discovery of a Commercial Oil or Gas Well CONTRACTOR shall, unless otherwise agreed upon with EGPC, undertake as part of its Exploration program the appraisal of the discovery by drilling one or more appraisal xxxxx, to determine whether such discovery is worthy of being developed commercially, taking into consideration the recoverable reserves, production, pipeline and terminal facilities required, estimated Petroleum prices, and all other relevant technical and economic factors. (ii) The provisions laid down herein postulate the unity and indivisibility of the concepts of Commercial Discovery and Development Lease. They shall apply uniformly to Oil and Gas unless otherwise specified. (iii) CONTRACTOR shall give notice of a Commercial Discovery to EGPC immediately after the discovery is considered by CONTRACTOR to be worthy of commercial development but in any event with respect to a Commercial Oil Well not later than thirty (30) days following the completion of the second appraisal well or twelve (12) months following the date of the discovery of the Commercial Oil Well, whichever is earlier or with respect to a Commercial Gas Well not later than twenty four (24) months following the date of the discovery of the Commercial Gas Well (unless EGPC agrees that such period may be extended) except that CONTRACTOR shall also have the right to give such notice of Commercial Discovery with respect to any reservoir or reservoirs even if the well or xxxxx thereon are not "Commercial" within the definition of "Commercial Well" if, in its opinion, a reservoir or a group of reservoirs, considered collectively, could be worthy of commercial development. It is understood that, any Crude Oil produced from an under-under- testing well in the Area before it is converted to a Development Lease, either considered Commercial or non-commercial non- Commercial Well, and not used in petroleum Petroleum operations, is 100% owned by EGPC and not subject to Article VII. CONTRACTOR may also give a notice of a Commercial Oil Discovery in the event it wishes to undertake a Gas Recycling Project. A notice of Commercial Gas Discovery shall contain all detailed particulars of the discovery and especially the area of Gas reserves, the estimated production potential and profile and field life. Within sixty (60) days following receipt of a notice of a Commercial Oil or Gas Discovery, EGPC and CONTRACTOR shall meet and review all appropriate data with a view to mutually agreeing upon the existence of a Commercial Discovery. The date of Commercial Discovery shall be the date EGPC and CONTRACTOR jointly agree in writing that a Commercial Discovery exists. (iv) If Crude Oil or Gas is discovered but is not deemed by CONTRACTOR to be a Commercial Oil / Gas Discovery under the above provisions of this paragraph (c), or one (1) month after the expiration of the period specified above within which CONTRACTOR can give notice of a Commercial Oil/ Gas Discovery, or thirteen (13) months after the completion of a well not considered by CONTRACTOR to be a "Commercial Oil Well" or after the expiration of twenty five (25) months after the completion of a well not considered by CONTRACTOR to be a "Commercial Gas Well", EGPC shall have the right, following sixty (60) days notice in writing to CONTRACTOR, at its sole cost, risk and expense, to develop, produce and dispose of all Crude Oil or Gas from the geological feature on which the well has been drilled. Said notice shall state the specific area covering said geological feature to be developed, the xxxxx to be drilled, the production facilities to be installed and EGPC's estimated cost thereof. Within thirty (30) days after receipt of said notice CONTRACTOR may, in writing, elect to develop such area as provided for in the case of Commercial Discovery hereunder. In such event all terms of this Agreement shall continue to apply to the specified area. If CONTRACTOR elects not to develop such area, the specific area covering said geological feature shall be set aside for sole risk operations by EGPC, such area to be mutually agreed upon by EGPC and CONTRACTOR on the basis of good Petroleum industry practice. EGPC shall be entitled to perform or in the event Operating Company has come into existence, to have Operating Company perform such operations for the account of EGPC and at EGPC's sole cost, risk and expense or by any other means deemed to be appropriate by EGPC for developing such discovery. When EGPC has recovered from the Crude Oil / Gas produced from such specific area a quantity of Crude Oil/Gas equal in value to three hundred percent (300 %) of the cost it has incurred in carrying out the sole risk operations. CONTRACTOR can have the option, only in the event of EGPC's approval or in case there has been a separate Commercial Oil / Gas Discovery, elsewhere within the Area, to share in further development and production of that specific area upon paying EGPC one hundred percent (100%) of such costs incurred by EGPC. Such one hundred percent (100%) payment shall not be recovered by CONTRACTOR. Immediately following such payment the specific area shall either (i) revert to the status of an ordinary Development Lease under this Agreement and thereafter shall be operated in accordance with the terms hereof; or (ii) alternatively, in the event that at such time EGPC or its Affiliated Company is conducting Development operations in the area at its sole expense and EGPC elects to continue operating, the area shall remain set aside and CONTRACTOR shall only be entitled to its production sharing percentages of the Crude Oil / Gas as specified in Article VII (b). The sole risk Crude Oil/Gas shall be valued in the manner provided in Article VII (c). In the event of any termination of this Agreement under the provisions of Article III (b), this Agreement shall, however, continue to apply to EGPC's operations of any sole risk venture hereunder, although such Agreement shall have been terminated with respect to CONTRACTOR pursuant to the provisions of Article III (b).