A Lens Over Invictus Energy’s Asset Portfolio In Zimbabwe

  • May 15, 2019 AEST
  • Team Kalkine
A Lens Over Invictus Energy’s Asset Portfolio In Zimbabwe

Invictus Energy Limited (ASX: IVZ) operates as an independent oil and gas exploration company headquartered in Perth, Australia. The company focuses on high impact energy resources in sub-Saharan Africa with a solid asset portfolio including 250,000 acres within the Cabora Bassa Basin (Africa’s one of the largest under-explored rift basins) in Zimbabwe.

The business strategy of the company is to build a portfolio of high potential oil and gas assets by capturing under-explored play types ahead of industry peers. IVZ’s disciplined and value-driven capital allocation takes a front seat to actively manage the company’s asset portfolio.

SG 4571 Permit (80% equity stake via its subsidiary Geo Associates (Private) Limited) defines the pinnacle of Invictus’ asset portfolio as it covers 250,000 acres located in the most prospective portion of the Cabora Bassa Basin in northern Zimbabwe. The project contains potentially the seismically defined, largest and undrilled structure in onshore Africa.

Image: SG4571 Permit (Source: Company’s website)

In March 2019 quarterly report, Invictus Managing Director Scott Macmillan stated that Invictus has spent the majority of the past 12 months to de-risk the Cabora Bassa Project and deliver several key milestones. The recently signed gas supply Memorandum of Understanding (MoU) forms a key highlight.

On 7 May 2019, Invictus announced that it has inked an MoU with Sable Chemical Industries to supply natural gas from the Cabora Bassa Project, a joint venture between Invictus (80%) and One-Gas Resources (Pvt) Limited (20%). It involves the potential gas supply of up to 70 million cubic feet per day to the Sable fertiliser plant located in Kwekwe, Zimbabwe for the period of 20 years.

The critical milestones achieved by the company in recent past flags the identification of the Giant Mzarabani Prospect which is one of the largest undrilled targets worldwide. Further, the company recognised an exciting new “Basin Margin / String of Pearls” play on completion of technical work program combined with $30 million legacy dataset.

(Source: Company’s AGM Presentation)

Invictus received the reprocessed seismic data during the quarter ended 31 March 2019 which has resulted in a significant improvement in the quality of the imaging of the subsurface and over the Mzarabani Prospect. The lines have reportedly provided evidence of multiple trap geometry configurations that can be mapped along the basin margin fault.

“String of Pearls” play types are hree-way structural closures against the basin margin fault that have been extremely successful in other interior rift basins in Africa. As per the company, the seismic data is being interpreted currently both internally and by Getech Group plc to enable IVZ to identify and mature the additional prospects and leads within the SG 4571 permit.

As at 31 March 2019, the cash balance of the company stood at $2.641 million.

Image: IVZ stock performance in 2018 (Source: Company’s AGM Presentation)

IVZ stock settled the day’s trading at $0.041, up by 2.5% with a market capitalisation of $15.64 million (As on 15 May 2019). Over the past 12 months, the stock has returned a decent 8.11% return with a double-digit YTD return of +25.00%.


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