Invictus receives non-binding offer for farm-in to Cabora Bassa Project in Zimbabwe
Invictus Energy announced it received a non-binding offer for farm-in to the Cabora Bassa Project in Zimbabwe, during the quarter ending December 2020. The proposed transaction is subject to completion of further technical, legal and commercial due diligence by both parties, approvals and agreements by requisite government authorities and execution of binding Farm Out Agreement(s). Further details of the proposed transaction will be made public upon completion of a binding FOA(s) and satisfaction (or waiver) of conditions.
The Company also announced that the Petroleum Exploration Development and Production Agreement (PEDPA) between Geo Associates and the Republic of Zimbabwe was reviewed by the Inter-Ministerial Committee established to review the agreement and has been approved. The PEDPA provides the framework for progression of the Cabora Bassa Project through the exploration, appraisal, development and production phases and the obligations and rights of each party over the project lifecycle. The Company is awaiting execution of the agreement.
Following the approval of the Environmental Management Plan, the Company undertook a successful field reconnaissance program in the Cabora Basa Basin during the quarter and was concluded ahead of schedule. Detailed traversing and mapping across the area was completed and identified the optimal acquisition routes. The Company is making significant progress on executing the first seismic acquisition program in the country for 30 years and is working closely with the seismic contractors on a planned acquisition campaign in 2021 to commence once the rainy season has concluded. This will be followed by a high impact basin opening drilling campaign to test the petroleum potential of the Cabora Bassa Basin.
The reconnaissance field program completed during the quarter revealed additional exposure of the JurassicCretaceous aged Dande Formation and possibly younger sediments approaching the southern Basin edge. A significant sequence of mudrock interbedded with sandstone, giving rise to typical ‘ridge and furrow’ topography, was observed for several kilometres along a section coincident with the traverse completed along proposed seismic line L35. The conclusion drawn from this observation is that the post-Dande Formation, in this locality and possibly elsewhere, contains a significantly larger proportion of mudrock than previously recognised.
Such developments could have significant intra-formational seal potential for this sequence and de-risk a key element of the petroleum system for this play. The observation of these significant mudrock sequences within this unit is consistent with the interpretation of better developed seals moving basinward. The interpretation is further supported by the elevated amplitude anomalies which may indicate the presence of hydrocarbons (Figure 1) on the high side fault trap coincident with the previously identified Lead A (Figure 2) feature in the post Dande formation and could indicate a competent seal and reservoir pair.
Following the completion of the field reconnaissance program and following receipt of submissions from multiple vendors, the Company has selected it preferred contractor to undertake a seismic acquisition campaign in 2021. The Company will commence detailed planning post formal contract award to enable the acquisition campaign to commence following the conclusion of the rainy season. The Company is planning to acquire a minimum of 400 line km of 2D seismic which exceeds the work program obligations for the current (2nd) exploration period.
During the quarter the Company also completed a further placement (Second Tranche) under the share subscription agreement announced on 30th April 2020. The placement raises the equivalent of $AUD 222,148 through the placement of 3,404,186 shares at a share price of $0.066; a 9% premium to the last closing price. The shares issued to Mangwana will be held in escrow for 6 months from the date of completion. The agreement makes provision for a further equity investment by Mangwana for the project over the next 12- 24 months as well as assisting the Company in achieving its strategic goals in the country.