Summary
- Invictus Energy is currently developing its 80% owned and operated Cabora Bassa Project in Zimbabwe.
- Its asset portfolio comprises a highly prospective 250k acres within the Cabora Bassa Basin in Zimbabwe where Special Grant 4571 contains the superlative multi-TCF Mzarabani and Msasa conventional gas-condensate prospects.
- In June 2020 Quarter, Invictus conducted a strategic placement, on-boarded Mr. Joe Mutizwa as Director, advanced the Project’s farmout process, concluded a drilling cost estimate, commenced rig identification & a CSR program and continued PSA negotiations.
- Shortly after renewing its Zimbabwe Investment Licence, Invictus has received approval from Zimbabwe Environmental Management Agency for the Project’s Environmental Impact Assessment.
The stock price of independent oil and gas exploration company, Invictus Energy Limited (ASX:IVZ) is witnessing an uptick this week, soaring 6.7% on Monday and further 6.25% on Tuesday. On Wednesday, 12 August 2020, the stock is trading at $0.034 during early trade hours, delivering a 41.7% return in the past three months.
Positive stock momentum was built on the back of Invictus’ recent announcement of the approval of the Environmental Impact Assessment (EIA) by the Zimbabwe Environmental Management Agency (EMA). Regarding this to be “a significant milestone for the Cabora Bassa Project”, Managing Director Scott Macmillan says that the Company is very pleased to have the EIA and Environmental Management Plan approved by EMA.
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EMA Approves Cabora Bassa Project’s EIA
The Zimbabwe government agency granted Geo Associates (Private) Limited, Invictus’ 80% owned subsidiary and holder of Special Grant 4571, permission to operate in accordance with Part XI of the Environmental Management Act (Chapter 20:27). EIA Certificate number 8000092361 was issued by EMA. The grant remains subject to certain specified terms and conditions, normal for such an authority.
The EIA study was done by the Scientific & Industrial Research & Development Centre, an independent environmental consultant. The complete assessment comprised:
- Field surveys and baseline measurements of hydrology, ecology, environmental, archaeological, hydrogeological, soil surveys
- Socio-economic and community consultations
- Consultation of the major project stakeholders, local leaders, appropriate government ministries and government extension offices
Reportedly, community information sessions were attended with up to 1k participants in a few meetings.
EIA Significance
Concluding permitting requirements, approval of the Environmental Management Plan permits Invictus to launch and undertake activities in the field, including seismic acquisition and exploration drilling in SG 4571. It is a significant milestone for the Project as it marks a progression from the primarily desktop studies phase to the on-ground activity phase of the Company’s exploration campaign.
According to Mr Macmillan, the EIA survey conducted by SIRDC, which demonstrated thorough and professional work to enable Invictus reach this milestone, is amongst the most comprehensive surveys undertaken for an exploration project in Zimbabwe.
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Impressive Stakeholder Support
Project and forward exploration program enjoy the full support of all stakeholders. For instance, local communities in the Muzarabani, Mbire Districts along with Mashonaland Central Province have reportedly conveyed their full support for the Project. Besides, supplementary submissions from non-governmental organisations as well as private commercial entities were also received, following the initial EIA assessment by the regulator in May.
Consultations and information sessions were conducted with groups that expressed their full support, identifying prospective areas of future collaboration in the project area and with local community programs.
Mr Macmillan opines that the support and feedback validate the cooperation of stakeholders and shareholders who seem determined to advance the Cabora Bassa Project for the benefit of the community and the country.
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Renewed Zimbabwe Investment Licence
On 5 August 2020, Invictus notified that it had received the approval of its application to renew the investment licence from the Zimbabwe Investment and Development Authority (ZIDA), for a further three years. The investment licence provides formal recognition of Invictus as a foreign investor in Zimbabwe and enables access to fiscal benefits and incentives.
The grant is subject to Geo Associates appearing before the Mining Affairs Board (Board) and present an overview of the forward work programme. Owing to COVID 19, the Board requested for a soft copy of the presentation and affirmed that the formal presentation would occur in due course. Geo Associates further advised that the soft copy presentation has been lodged with the Board with all of the work commitments for the first three-year exploration period addressed.
Way Forward
Invictus continues to advance negotiations for the Production Sharing Agreement with the Republic of Zimbabwe via the Technical Committee and its legal representative. Besides, a comprehensive work programme has been proposed for the second three-year exploration period, comprising a commitment to drill a minimum of one exploration well. The farmout process of the Cabora Bassa Project is also ongoing and active discussions with multiple parties continue.
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