Mutapa Investment Fund to participate in Invictus’s PPSA for Zim Gas Project
Mutapa Investment Fund, a Zimbabwean sovereign wealth fund, is set to participate in Invictus Energy’s Petroleum Production Sharing Agreement (PPSA) for Zimbabwe’s Cabora Bassa gas project.
Australian-based Invictus Energy has released its quarterly report, revealing substantial progress in its Zimbabwean operations, with multiple milestones achieved and strategic partnerships forged.
According to the company’s quarterly report for period ending 30 SEPTEMBER 2024, its efforts in the Cabora Bassa Basin have yielded promising results.
Invictus is transitioning from explorer to developer, after making a significant gas discovery at the Mukuyu field in the Cabora Bassa Basin.
During the quarter, Invictus defined eight high-potential prospects in the eastern Cabora Bassa area, totaling 2.9 trillion cubic feet of gas and 184 million barrels of condensate.
The prospects, located in the Company’s Exclusive Prospecting Orders (EPOs) 1848 and 1849, demonstrate significant gas volumes at multiple stratigraphic levels.
The Musuma prospect has emerged as the preferred candidate for drilling, with estimated recoverable resources of 1,170 billion cubic feet of gas and 73 million barrels of condensate.
Invictus plans to test the Dande play in eastern Cabora Bassa next year, utilising the Exalo 202 rig already onsite at the Mukuyu-2 location.
“A total of eight key prospects were defined in the Company’s Exclusive Prospecting Orders (EPOS) 1848 and 1849, totalling 2.9 Tcf gas and184 MMbbl condensate” (gross mean unrisked basis).
“The Central Fairway prospects stretch across the Dande, Pebbly Arkose, and Angwa formations at relatively shallow depth and have high potential gas volumes at multiple stratigraphic levels,” the company noted.
Mutapa Investment Fund has been nominated to participate in the Petroleum Production Sharing Agreement (PPSA) on behalf of the Republic of Zimbabwe.
“It will also be assigned as the beneficiary of the product/profit share and equity holder on behalf of the Republic of Zimbabwe (refer ASX announcement 29 July 2024)
“This reinforces the importance of Mutapa’s US$5 million equity holding in the Cabora Bassa Project as well as the finalisation of the PPSA, which aims to ensure fair and equitable sharing of the project’s revenue between the Government, Invictus and its partners,” the company noted.
Invictus has also secured a three-year extension of its exploration license for SG 4571, covering the Mukuyu Gas Field, until June 2027. The company plans to undertake a comprehensive work program, including 3D seismic acquisition and additional exploration/appraisal drilling.
Planning for 3D seismic and appraisal drilling and testing at Mukuyu Gas Field is underway. This work will evaluate the field’s resources and prepare for the early commercialisation pilot scheme for a gas-to-power project at the Eureka Gold Mine.
Invictus has also announced significant progress in its farm-out discussions with potential partners for the Cabora Bassa Project. The company said late-stage discussions have progressed with several parties, enabling the company to optimise operational and corporate outcomes.
On the corporate front, Invictus successfully completed a US$10 million institutional placement, underwritten by US$5 million from Mutapa Investment Fund.
The company has also listed on the Victoria Falls Stock Exchange (VFEX) under the ticker INV.vx, facilitating local liquidity and trading.
Victoria (Vicky) McLellan has joined Invictus as the new Chief Financial Officer, bringing extensive oil and gas experience.
“Vicky is an experienced oil and gas professional, having held a range of commercial and financial roles in oil and gas companies and top tier accounting firms over the past 20 years,” the company stated.
