Southern Africa is facing an energy crisis with increasing shortages of electricity hampering industrial growth and investment. The region remains on the hunt for gas supply and aims to shift its power sector from the heavily polluting coal-based to a much cleaner renewable energy one.
The current President of Zimbabwe Emmerson Mnangagwa has proclaimed that Zimbabwe is open for business. The new Government of this South African landlocked country has been promoting foreign investment and implemented several investor friendly reforms.
Zimbabwe - relatively industrialized compared to majority of African countries and with large local demand serves as a strategic location for businesses, being the gateway and import/export corridor for regions.
The Cabora Bassa Project Receives Priority Project Status
On 13 January 2020, IVZ notified that the Office of the President and Cabinet of Zimbabwe has finally classified the Cabora Bassa Project as a priority development project. One of the key projects within Zimbabwe has received the Priority Project Status from Zimbabwe Government.
Upstream E&P Company- Invictus Energy
IVZ is a first mover in the region and has the opportunity to yield massive rewards as the early entry has secured the company with the best acreage, best terms and most lucrative markets. Currently, the Company is dedicated towards high impact energy resources in sub-Saharan Africa.
IVZ is the 80% owner and operator of the Cabora Bassa Project (Project) and contains the Special Grant 4571 (SG 4571) exploration licence in the Basin. The remaining 20% is held by One-Gas Resources.
SG 4571 licence contains potentially the largest, seismically defined, undrilled structure onshore Africa. It has the world class multi-TCF Mzarabani and Msasa conventional gas-condensate prospects.
Significance of the Priority Project Status
IVZ’s classification denotes that the Cabora Bassa Project can provide a significant economic benefit to the economy in pursuit of the vision of becoming a Middle Income Economy by 2030.
Invictus Board remains encouraged by the robust support offered by the Government of Zimbabwe to fast track the Project and achieve several further outcomes.
One of these outcomes is the finalisation of a Production Sharing Agreement (PSA) with the Republic of Zimbabwe. It will confirm that a stable, transparent and predictable legal and fiscal regime is in place. The PSA will also be proportionate when it comes to the region and will follow international best industry practice to meets the Zimbabwe’s aspirations.
IVZ along with One-Gas Resources seeks to closely work with the Cabinet, the Zimbabwe Ministry of Mines and Mining Development, the Office of the President and other Ministries to advance the Project and ensure the delivery of key outcomes under the 100 Day Cycle.
IVZ’s Stock Performance
Investors greeted the key update with a positive response; IVZ soared by 7.69% and quoted $0.028 on 13 January 2020.
As the Company remains in progress with a Farmout process to select a partner to participate in the high impact basin opening well, the Project developments and the Government’s support have IVZ on a growth trajectory.
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