Source: IVZ Annual Report, Sep 2020
- 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.
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
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.
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.