Sponsored

Invictus in sweet spot to unlock potential at Cabora Bassa in Zimbabwe

Source: IVZ Annual Report, Sep 2020

Summary

  • Invictus Energy Limited (ASX:IVZ) is focused on high impact energy resources in sub-Saharan Africa.
  • The Company owns an 80% interest in the Cabora Bassa Project in northern Zimbabwe.
  • There is giant scale potential within SG 4571 in Cabora Bassa with multiple play types offering running room on success.

Independent E&P company Invictus Energy Limited (ASX:IVZ) is strategically positioned to supply energy-starved domestic and regional markets, especially the large South African market. Armed with the first mover advantage in Zimbabwe, Invictus has secured the best acreage and best terms along with access to the most lucrative markets.

GOOD READ: How Invictus is planning to build on last year’s momentum in 2021?

Cabora Bassa Project

Invictus operates and owns 80% of the Cabora Bassa Project. It holds SG 4571 exploration licence in the Cabora Bassa Basin which contains potentially the largest, seismically defined, undrilled structure onshore Africa. SG 4571 exploration licence has been renewed till 2023.

The licence area covers 250K acres in the most prospective part of basin.

  • 2 Tcf + 249 million bbls# of conventional gas-condensate is in Mzarabani Prospect alone.
  • There is source, reservoir as well as seal and sampled at outcrop to SG 4571’s west. This is mapped into the subsurface.
  • Lower Triassic source rock is also present in the Basin.

Recent developments at Cabora Bassa Project

At the project, low-cost onshore exploration with proximity to infrastructure enables rapid monetisation of discoveries. In the quarter ending December 2020, Invictus kicked off field operations in Basin. The company managed to conclude field reconnaissance program ahead of schedule. Moreover, additional seal potential was identified.

Copyright © 2021 Kalkine Media Pty Ltd, Source: IVZ ASX Update, Jan 2021

ALSO READ: Unveiling accomplishments of Invictus Energy (ASX:IVZ) in December 2020 quarter

Factors paving the path for project development

Invictus believes that the Cabora Bassa asset is well-placed to benefit from the transition to natural gas as an important less carbon intensive fuel source in the energy matrix. Meanwhile, the company continues to make significant strides in development of the Project:

  • Two MOUs were signed with Tatanga Energy and Sable Chemicals to safeguard a market and lock in a premium value to near-term cash flow for ~15% of the likely gas resource (if the exploration campaign is successful).
  • The Environmental Impact Assessment permit was awarded in August 2020.
  • Invictus got the approval for its application to renew the significant investment licence from the Zimbabwe Investment and Development Authority.
  • Petroleum Exploration Development and Production Agreement review was completed.
  • The Company successfully roped in Mangwana Opportunities Fund, a local Zimbabwe Institutional Investor, as an in-country cornerstone investor.
  • Non-binding offer for farm-in to Project was received.

GOOD READ: Why is Invictus Energy’s (ASX:IVZ) Cabora Bassa Project an ideal answer to Zimbabwe’s energy crisis?

IVZ traded up by 1.16 % at $ 0.087 on 1 March 2021.

Invictus is making substantial headway in executing the first-ever seismic acquisition program in the country for three decades. It is closely working with seismic contractors to kick off a planned acquisition campaign in 2021 once the rainy season has concluded. A high impact basin opening drilling campaign will then be conducted to test the Basin’s petroleum potential.

 

 


Disclaimer
The website https://kalkinemedia.com/au is a service of Kalkine Media Pty. Ltd. (Kalkine Media) A.C.N. 629 651 672. The principal purpose of the content on this website is to provide factual information only and does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stock of the company (or companies) or engage in any investment activity under discussion. We are neither licensed nor qualified to provide investment advice through this platform. In providing you with the content on this website, we have not considered your objectives, financial situation or needs. You should make your own enquiries and obtain your own independent advice prior to making any financial decisions.
Some of the images that may be used on this website are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed on this website unless stated otherwise. The images that may be used on this website are taken from various sources on the web and are believed to be in public domain. We have used reasonable efforts to accredit the source (public domain/CC0 status) to where it was found and indicated it below the image. The information provided on the website is in good faith, however Kalkine Media does not make any representation or warranty regarding the content, accuracy, or use of the content on the website.

 

   
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. OK