The Chronicle
Oliver Kazunga, Senior Business Reporter
THE Government has extended by a further three years the tenure of a Special Grant licence held by Invictus Energy for its oil and gas project in Muzarabani.
Early this year, the strategic energy project that is presently under development received significant impetus for hurdle free and expedited implementation after Government classified the investment as a priority development initiative.
Invictus Energy, which holds 80 percent stake in the oil and gas project through Geo Associates Zimbabwe, in a statement said the exploration licence for the second period runs to August 2023.
“Geo Associates has received notification that its application to extend the tenure of the SG 4571 licence for a further three years has been granted by the Mining Affairs Board.
“This will be followed by publication in the Government Gazette. The exploration licence for the Second Period runs to August 2023,” said Invictus Energy.
It said it plans to undertake a comprehensive work programme for the second three-year exploration period including the commitment to drill a minimum of one exploration well.
As part of the Government’s support to the energy project and in sync with the Second Republic’s “Zimbabwe is Open for Business” mantra, the Zimbabwe Investment and Development Authority (Zida) has renewed the firm’s investment for five years.
“The company has received approval of its application to renew the investment licence from Zida for a period of five years. The investment licence provides formal recognition of the company as a foreign investor in the country and enables access to a range of fiscal benefits and incentives,” said the oil and gas exploration company.
During the quarter ended September 30, 2020, Invictus Energy completed a further placement (second tranche) under the share subscription agreement announced on the 30th of April this year.
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 nine percent premium to the last closing price.
“The shares issued to Mangwana Opportunities Fund will be held in escrow for six months from the date of completion.
“The agreement makes provision for a further equity investment by Mangwana for the project over the next 12 to 24 months as well as assisting the company in achieving its strategic goals in country.”
Mangwana Opportunities Fund is a Zimbabwe private equity fund managed by Mangwana Capital.
Turning to production sharing agreement with the Government, the investor said negotiations with authorities were ongoing.
The drafts of the Production Sharing Agreements have been finalised and were undergoing review by members of an Inter-Ministerial Committee advised by an independent expert.
The process, which is expected to be concluded shortly, Invictus said, will enable the signing of the agreements in the near future.
The Environmental Management Agency has also approved Invictus’ Environmental Management Plan and thus enabling the firm to commence and undertake activities in the field including seismic acquisition and exploration drilling.
The Environmental Impact Assessment (EIA) study was conducted by independent environmental consultants, the Scientific and Industrial Research and Development Centre (Sirdc).
“The full EIA assessment included field surveys and baseline measurements of hydrology, ecology, environmental, archaeological, hydro-geological, soil surveys and socioeconomic and community consultations consultation of the key project stakeholders, local leaders, relevant Government ministries and extension offices.
“The community information sessions were well attended with up to 1 000 participants at some meetings.
“The EIA survey conducted by Sirdc has been one of the most comprehensive surveys undertaken for an exploration project in the country and we thank them for their thorough and professional work,” said Invictus. — @okazunga.
