How Are Developments Fostering at Invictus Energy After A Successful June Quarter?

Summary

• Upstream E&P Company, Invictus Energy had a strong June 2020 quarter- advancing on farm-out process, strategic Board addition, initiation of CSR program, fast tracked PSA negotiations and operational progress.
• Invictus is developing the Cabora Bassa Project containing SG 4571 exploration licence in the Cabora Bassa Basin in northern Zimbabwe.
• SG 4571 licence contains potentially the largest, seismically defined, undrilled structure onshore Africa with 8.2 Tcf + 249 million bbls of conventional gas-condensate in Muzarabani Prospect alone.
• Developments have continued post the June quarter- a strategic placement, renewal of Zimbabwe Investment Licence, SG 4571 Tenure Extension, approval of Environmental Impact Assessment (EIA) and revision of few remuneration packages to conserve cash reserves.

Invictus Energy Limited (ASX:IVZ) is at an important stage of development, being the 80% owner and operator of the Cabora Bassa Project containing SG 4571 exploration licence.

“The Cabora Bassa project in Muzarabani is a potential game changer for the country which can bring about significant economic benefits and energy security to the entire region.”, says Joe Mutziwa, a newly appointed Director of wholly owned subsidiary Invictus Energy Resources Zimbabwe.

Invictus has foreseen significant opportunities and challenges in both the near and long term. It continues to develop the Project which has an elephant scale potential in one of the last undrilled rift basins in Africa on the doorstep of a massive market.

Invictus Energy had a strong June 2020 quarter- advancing on farm-out process, strategic Board addition, initiation of CSR program, fast tracked PSA negotiations and operational progress. To know about Invictus’ June 2020 quarter, READ HERE- Lens Through Invictus Energy’s Robust June 2020 Quarterly Activities Report

Interestingly, Invictus has continued its development spree post the June 2020 quarter. Let us cast an eye on all the latest operation progress:

Placement with Strategic Investor at a Premium

On 8 July 2020, Invictus completed the Placement at a premium with Zimbabwe’s institutional investor Mangwana Opportunities Fund which was announced on 30 April 2020. Approximately 12.5 million shares raised an equivalent of $0.44 million, post in country approvals.

Besides, the agreement makes provision for a further equity investment by Mangwana for the world-class Cabora Bassa Project over the next 12-24 months and assisting Invictus in achieving its strategic goals in country.

Besides, a vital add-on to the Placement was the appointment of Mr. Joe Mutizwa to the board of Invictus Energy Resources (Zimbabwe) Pvt Limited.

It should be noted that Mangwana has been assisting the Company in advancing key objectives like the Production Sharing Agreement and other regulatory approvals for the Cabora Bassa project.

ALSO READ: Invictus Energy in Action: Completes Placement, Welcomes Incoming Director at Zimbabwe Subsidiary

Zimbabwe Investment Licence Renewed, SG 4571 Tenure Extension

August 2020 began on a positive note for the Company, with the receipt of approval of its application to renew the investment licence from the Zimbabwe Investment and Development Authority (ZIDA).

Besides, Geo Associates (Pvt) Ltd, Invictus’ 80% owned subsidiary and holder of Special Grant 4571, was intimated that its application to extend the tenure of the SG 4571 licence for a further three years has been granted.

This, however, is subject to Geo Associates appearing before the Mining Affairs Board to present an overview of the forward work programme.

Environmental Impact Assessment Approval

Shortly after investment licence renewal and tenure extension, Invictus notified that the Project’s EIA has been approved by the Zimbabwe Environmental Management Agency. This was another significant milestone for the Cabora Bassa Project that marks the progression from the primarily desktop studies phase to the on-ground activity phase of the Company’s exploration campaign. Simply put, the Company now has permission for seismic and drilling operations in SG 4571.

GOOD READ: Invictus Marks Significant Milestones: EIA Approved by EMA, Zimbabwe Investment Licence Renewal

Proposal to Revise Directors’ Remuneration Package

On 19 August 2020, Invictus proposed the issue of performance rights to the remuneration package of Managing Director, Mr Scott Macmillan and Non-Executive Chairman, Dr Stuart Lake. The intent of this proposal is to conserve the Company's available cash reserves, and attract and maintain highly experienced and qualified Board members in a competitive market. This remains subject to the shareholder approval.

ALSO READ: Invictus Updates on Proposed Directors’ Remuneration Package, Shareholder Meeting Likely in Due Course

With developments continuing, Invictus is currently advancing negotiations for the Production Sharing Agreement with the Republic of Zimbabwe via the Technical Committee and its legal representatives.

IVZ share price recorded its fresh 52-week high on 4 September 2020. The stock traded at $ 0.048, up 4.4% on 8 September 2020.