Kirillitsa JSC has completed the transfer of the exclusive rights to use patents for the multifluid thermal technology (MTT) to the subsidiary oil company "Oil Resource". The rights were included in the authorized capital of Oil Resource LLC in the form of a non-monetary contribution from the sole member of the company.

By 2028, "Oil Resource" plans to form an oilfield service for the extraction of hard-to-recover oil reserves using the MTT. In connection with the granting to "Oil Resource" of exclusive rights to use the "Kirillitsa" intellectual property items, an appraisal was carried out using a revenue-generating approach that determines future cash flows generated from the economic benefits of the oilfield service. The revenue-generating approach to appraisal is used in accordance with order of the Ministry of Economic Development of the Russian Federation dated 30.11.2022 No. 659 "On Approval of the Federal Appraisal Standard "Appraisal of Intellectual Property and Intangible Assets (FSO XI)".

The appraisal of the exclusive rights cost to use the technology was prepared by an independent appraisal company which is a member of the Russian Board of Appraisers, SOA "National Board of Appraisers" and SOA Association of Appraisers "Community of Professional Appraisers".
The current increase in the authorized capital has no impact on the сredit quality of issuers of "Oil Resource" LLC and Kirillitsa JSC as well as their ability to service their debt obligations.
The MTT is a promising technology for the development of hard-to-recover oil reserves which is being developed by the Scientific and Technological Center within Kirillitsa Group of Companies. The technology has successfully passed laboratory tests and obtained a positive grade after the implementation of hydrodynamic and economic modeling.

The MTT is of industry importance, it is the key to the development of the Bazhenov formation and the cost-effective development of mature deposits in Western Siberia and the Volga region. According to experts, the technology will increase technologically recoverable oil reserves to 60-80 billion tons which is 3-4 times more than existing reserves (approximately 20 billion tons).