- Independent oil and gas exploration company, Invictus Energy has been concentrating on high impact energy resources which are based in sub-Saharan region of Africa.
- Currently developing the Cabora Bassa Project, IVZ’s portfolio contains Special Grant 4571- superlative prospects of multi-TCF Mzarabani as well as Msasa conventional gas-condensate.
- Invictus recently reported impressive June 2020 Quarter results, highlighting placement details, ongoing PSA negotiations, advancing farm-out process, a strategic Board addition, commencement of CSR program, along with operational progress.
Invictus Energy Limited (ASX:IVZ) has made significant progress of late, progressing the development of the Cabora Bassa Project in Zimbabwe, that encompasses Mzarabani Prospect - a multi-TCF conventional gas-condensate target which is possibly the largest and undrilled seismically defined structure in onshore Africa. Since completing the Special Grant 4571 acquisition in June 2018, Invictus Energy has achieved a number of technical, commercial and strategic objectives set by the Board.
On 31 July 2020, the Company provided an update of its activities for the quarter ending June 2020, wherein it accomplished several milestones-
Corporate Update: Placement at a Premium, COVID-19 Impact
In April 2020, Invictus Energy signed a binding share subscription agreement with strategic Zimbabwe institutional investor Mangwana Opportunities Fund, to raise ~$ 0.44 million via placement of 12,564,143 shares at a share price of $ 0.035, representing a 91% premium to the preceding 5 day VWAP of $ 0.0183 and a 40 % to premium to the last closing price of $ 0.025.
Funds raised are likely to advance the Project- preparatory works in project area, ground activity, CSR program within Mzarabani and Mbire Districts (which commenced during the quarter) along with other in country activities.
Besides, the agreement makes provision for additional equity investment by Mangwana over the next 1-2 years, along with aiding the company in achieving in country goals.
Besides, the Board and Management concentrated on lowering costs amid the COVID-19 environment. Subsequently, cuts were made in several categories of corporate costs in Australia from already low overheads, reduction in Board and Management’s annual fees and remuneration by 25-50 % (effective 1 April 2020).
At the end of the quarter, the cash and cash equivalents amounted to $ 1,497 k.
New On Board: Mr. Joe Mutizwa
Concurrent to the Placement, Invictus appointed respected Zimbabwean businessperson and current chairman of Mangwana Capital, Mr. Joe Mutizwa as Director of its 100% owned local subsidiary ,Invictus Energy Resources Zimbabwe Pty Ltd. This further strengthens the Company’s investor base and in-country presence with the Mangwana partnership likely to support advancing key objectives in country, offering exposure for local investors to the Cabora Bassa project.
Ongoing Activities: PSA Negotiations, Farm Out Process
Invictus continued negotiations of a Production Sharing Agreement (PSA) with the Government of Zimbabwe via the appointed Technical Committee and legal representatives. Besides, the farmout process of the Project continues with ongoing active discussions with multiple parties.
Reportedly, the project has passed technical review/ assessment and is currently undergoing commercial evaluation, above ground due diligence and detailed forward program costing with these parties.
Completion of commercial evaluation including in country due diligence was adversely affected by COVID-19 travel and border restrictions in Zimbabwe and the wider region to date along with oil market volatility.
While the COVID-19 restrictions are still in place, Invictus is working with respective parties to finalise outstanding requirements as far as practical. Further updates are likely as per continuous disclosure requirements.
Operational End: Drilling Cost Estimate Completed, Rig Identification Commenced
Invictus received an independent drilling cost estimate for a range of vertical and directional well designs with total depth range of 2,000m down to 4,000m. Drilling cost estimates range from USD 5.2 million (2,000m vertical well - low side estimate) to USD 16.4 million (4,000m directional well - high side estimate) that seem consistent with internal estimates.
The best estimate for a 3,200m directionally drilled well to test the 8.2 Tcf + 249 million bbl Mzarabani Prospect was reported to be USD 11.7m (excl. mobilisation), affirming the ability to test a world class, material target at relatively low cost.
CSR Program Initiation
Invictus commenced its Community Social Responsibility (CSR) program during the quarter which has been developed in conjunction with local community to ensure that it is effective and has a positive contribution to the community that the Company works with. Besides, to prevent the spread of COVID-19, donations were made to the community in the form of refurbishing a community facility and 2,500 face masks.
On stock performance front, IVZ traded at $ 0.031 on 31 July 2020 and has delivered returns of 24 % in the past three-months.
MUST WATCH! Unveiling Invictus Energy Limited
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