Big in Harare: Invictus sets stage for giant Zimbabwe gas push
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Invictus is cracking open its ambitious two well drill program at the 80% owned and operated Cabora Bassa gas condensate project in Zimbabwe.
Invictus says it’s already secured casing, wellheads and other long-lead items ahead of the May 2022 launch and will soon award the well services contract after completing an extensive tendering process.
It follows Invictus Energy (ASX:IVZ) getting a whole lot of firm commitments from sophisticated and institutional investors for a $3.5m placement at 10c a pop to cover everything from the mobilisation fee – for the beautiful Exalo #202 rig – the long lead items and to wrap up the data processing of its recent 2D seismic survey.
Up to $2m could be raised through the accompanying share purchase plan for existing shareholders under the same terms.
The campaign will kick off with its highly anticipated Muzarabani-1 that will be drilled to a planned minimum depth of 3,000m or basement to test the giant Mzarabani conventional gas-condensate stacked target that could host 8.2 trillion cubic feet of gas and 247 million barrels of condensate.
Location and details for the second well will be finalised once the seismic interpretation is completed.
“We are very pleased with the way the drilling program is coming together with Invictus securing the wellheads and casing long lead items for a high impact 2-well drilling program,” managing director Scott Macmillan said.
Invictus remains on track for the upcoming drilling campaign to commence in May 2022, Macmillan said.
“We are planning for a successful drilling campaign, which if transpires will be a transformational event for both Invictus and Zimbabwe.”
The Cabora Bassa Basin has never been tested by drilling despite an extensive dataset acquired by Mobil in the early 1990s defining the Mzarabani target due to the lack of gas demand at that time.
However, demand for gas in southern Africa has been rising steadily and Cabora Bassa is certainly looking like the right address for exploration.
This has already drawn Cluff Energy Africa (CEA) as a potential farm-in partner who could take a 25% stake in the project in return for funding a third of the costs for the two-well campaign.
CEA’s potential entry also sets the baseline for Invictus to consider other farm-in options.
Current activity includes the processing and interpretation of the recent high-quality 2D seismic survey to refine the Muzarabani-1 well location and identify other prospects.
This article was developed in collaboration with Invictus Energy, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.