Stock Exchange (ASX) junior miner, Invictus Energy (Invictus), says there is “additional potential” at its controversial Cabora Bassa Basin oil prospects in Muzarabani.
Scott Macmillan, Invictus chief executive, on Monday told shareholders that while the project’s potential had been confirmed through an independent report, the estimate from the independent report excluded additional leads that had been discovered, hinting potential was greater than initially projected.
“The size of the primary Angwa target alone in Muzarabani Prospect places us in giant scale field potential. I must point out that this estimate excludes the additional potential in the horizons above and below the Upper Angwa and the additional plays and leads we have identified in our area acreage,” he said at the junior miner’s Annual General Meeting in Perth.
The Invictus boss pointed out that technical work was to progress into 2019 as the firm ascertained the prospect’s potential.
“Our technical work will progress into the New Year which will enable us to quantify this additional potential and is expected to add materially to our already world-class prospective resource base…The potential of our acreage is truly staggering for a company of our size,” he said.
Invictus — a penny stock whose only asset is the Muzarabani find which is part of the Cabora Bassa Basin — has created a storm with energy experts highlighting the firm has no capacity to conduct on-site drilling.
This comes as President Emmerson Mnangagwa hastily granted Special Grant 4571, a three-year grant, to the firm in 2017 after rising to power.
Against caution from energy experts, Mnangagwa last month announced Invictus had discovered an oil bonanza, saying Invictus was moving to enter a production sharing arrangement with Zimbabwe once the project reached commercial production.
While barely 24 hours later, the junior miner swiftly moved to downplay the statement leaving egg on the president’s face, Macmillan now claims the bonanza is bigger than expected.
“Invictus plans to do what is called farming-out. So essentially they will get a real oil and gas company to do the drilling and production and they will be paid a royalty.
“Nothing wrong with that for them but everything wrong for Zimbabwe because it means our royalty interest is significantly reduced. In Australia it is not even named among the top 50 oil companies because it’s not even considered an active energy company,” a United States-based Zimbabwean energy expert said.
At the time of Mnangagwa’s announcement, Invictus’ shares were suspended from trading on the ASX pending the release of an announcement regarding the Maiden Prospective Resource Estimate.
Invictus was formerly known as Interpose Holdings Ltd and changed its name recently. Before that, it had changed its name from Sunbird Energy. The junior miner issued 150 million shares and raised A$4,5 million in June 2018.
Before its suspension prior to the oil bonanza announcement, its share price was illiquid and traded at a mere $0,03. Daily News.
