This is how Invictus Energy (ASX:IVZ) performed in March 2022 quarter

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This is how Invictus Energy (ASX:IVZ) performed in March 2022 quarter

Invictus Energy
Image source: Company presentation, April 2022

Highlights

  • Invictus Energy Limited (ASX:IVZ) unveiled its financial and operational performance report for the quarter ended 31 March 2022.
  • The Company is opening one of the last untested large frontier rift basins in onshore Africa, the Cabora Bassa Basin.
  • Mukuyu Prospect drilling is anticipated to commence in July 2022.

Shares of Invictus Energy Limited (ASX:IVZ) traded up by a whopping 21%, mid-day on 29 April 2022. IVZ quoted A$0.23, with a trading volume of over 4 million shares and a market capitalisation of A$126.76 million. The significant uptick in share price seemed to have been propelled by the independent upstream oil and gas company’s financial and operational performance report for the quarter ended 31 March 2022.

Invictus is opening one of the last untested large frontier rift basins in onshore Africa, the Cabora Bassa Basin, in northern Zimbabwe through a high impact exploration program. Its principal asset, Special Grant 4571 (SG 4571), contains the world class Mukuyu prospect. This is the largest undrilled prospect onshore Africa- independently estimated to contain 8.2 Tcf and 247 million barrels of conventional gas condensate (gross mean unrisked basis). Mukuyu Prospect drilling is anticipated to commence in July 2022.

Agreements & contracts

In the March 2022 quarter, the Company’s 80% owned subsidiary Geo Associates executed a Heads of Agreement with the Sovereign Wealth Fund of Zimbabwe to increase the SG 4571 licence area from 100,000 hectares to 709,300 hectares. Currently, customary government gazettal is awaited.

There were other deals made towards the Cabora Bassa Project development-

  • To drill the Mukuyu-1 exploration well, Invictus executed a binding drilling rig contract with Exalo Drilling SA. There is also an option for an additional exploration well. The Exalo #202 rig might mobilise from Tanzania to the Project in May. Notably, casing, wellheads, and ancillary long lead items for the two-well drilling campaign have already been secured.
  • The Company awarded Baker Hughes the integrated well services contract following completion of a competitive tender and evaluation process.
  • ERC Equipoise Pte Ltd was appointed to conduct an independent prospective resource update for the Project.
  • Cluff Energy Africa’s (CEA) request to extend its farm-in option expiry was granted- from 31 March to 30 April 2022. Recently, Invictus received three farm-in offers for the Project including an updated bid from CEA. Additional parties are conducting ongoing due diligence and internal approvals, which may result in further bids being received.

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Cabora Bassa Project progress

Under the Heads of Agreement with Geo Associates, Invictus has agreed to increase the minimum work program obligation for the current second exploration period to drill two exploration wells, including the Mukuyu-1 prospect and one exploration well in the expanded area.

Besides, Invictus largely completed its interpretation of the newly acquired seismic data of the 2021 Cabora Bassa 2D Seismic Survey (CB21 survey), as well the concurrently reprocessed data of the 1990 legacy Mobil dataset. Notably, Mukuyu Prospect has now been clearly delineated as a large, robust, 4-way dip anticline, with the seismic data confirming prospectivity, including extensive seismic anomalies identified at multiple levels.

Management updates

In the March 2022 quarter, Invictus appointed Barry Meikle as Country Manager. Additionally, the Board travelled to Zimbabwe for a series of on-the-ground engagements in March. Together with JV partner One-Gas, presentations and meetings were held with the local community leaders and senior government ministers. Tours of Community Social Responsibility projects were implemented in the Muzarabani and Mbire districts.

GOOD READ- Invictus Energy’s action-packed half-year report is here!

Chairman Stuart Lake and Non-Executive Director Gabriel Chiappini met with His Excellency President E.D. Mnangagwa, Minister of Finance Hon Mthuli Ncube and Minister of Home Affairs in Zimbabwe to provide an update on the Cabora Bassa project.

Management and Government meeting

Source- Company announcement, April 2022

 Cash and cash equivalents at the end of the March 2022 quarter amounted to A$7,351,000.

The Cabora Bassa Project is developing at a strategic time when the New Zimbabwean Government is promoting foreign investment and has implemented investor friendly reforms. Invictus has a clear strategic pathway to execute upon in the lead up to the drilling of multiple initial targets. The upcoming months will be exciting, as Invictus is now in the final processes of preparation for drilling on the Mukuyu and Basin Margin targets.

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