Source: IVZ’s website
- Invictus Energy has revealed its operations and financial report for the half-year period ending on 31 December 2020.
- During the period, the Company progressed the Cabora Bassa Project’s development and continued evaluation of additional hydrocarbon projects.
- Directors believe that Invictus’s exploration and development assets will attract further capital investment when required, and the additional fund can be secured when and if required.
Leveraging from the first-mover advantage in the lucrative Cabora Bassa Basin in Zimbabwe, Invictus Energy Limited (ASX:IVZ) is in fine fettle due to rampant developments at the Cabora Bassa Project.
The independent oil and gas exploration company revealed its operations and financial report for the half-year period ending on 31 December 2020. During the period, the Company continued Project development. It also evaluated additional hydrocarbon projects.
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During the reporting period, Invictus witnessed several developments across the Cabora Bassa Project-
- The Mining Affairs Board approved the application to extend the tenure of the SG 4571 licence and granted a further three-year extension, which now runs to August 2023.
- The EMA issued EIA Certificate (number 8000092361). This concludes the permitting needs, enabling Invictus to undertake field activities (including seismic acquisition as well as exploration drilling).
- Zimbabwe Investment and Development Authority (ZIDA approved Invictus’s application to renew the investment licence for five years.
- Mangwana Opportunities Fund enlisted as a local institutional investor via two separate placements at a premium to the market price.
- Invictus began field operations in the Cabora Bassa Basin via a reconnaissance programme and baseline survey.
- The Company obtained the much-awaited non-binding offer for farm-in to the Project.
- The Inter-Ministerial Committee reviewed and approved the Petroleum Exploration Development and Production Agreement (PEDPA) between Geo Associates and the Republic of Zimbabwe.
Net assets as of 31 December 2020 amounted to $8,309,831. Total cash was $934,043.
Invictus intends to continue cash expenditure on operating activities and the Cabora Bassa Project. Notably, Directors believe that Invictus’s exploration and development assets will attract further capital investment when required. The Company can also secure additional fund through debt or equity issues, when and if required.
Invictus aims to undertake a comprehensive work programme in its second three-year exploration period (including the commitment to drill a minimum of one exploration well).
Perhaps this year’s most-awaited activity would be the planned acquisition campaign, likely to be conducted in the 2021 dry season. Invictus has already selected its preferred seismic contractor for the campaign (ahead of formal contract award).
Details of the proposed transaction concerning the binding Farm Out Agreement(s) are also expected upon its completion and satisfaction (or waiver) of conditions. The Company is also awaiting the execution of the PEDPA.
Meanwhile, Mangwana Opportunities Fund is likely to assist the Company in achieving its strategic goals in the country.
On 16 March 2021, IVZ quoted $0.125 on the ASX.