We were extremely pleased to announce the final independent review of the Petroleum Production Sharing Agreement (PPSA) was completed last month, with execution expected imminently.
The PPSA is designed to ensure equitable sharing of value generated from the Cabora Bassa Project and will also provide a robust governing framework for Zimbabwe’s oil and gas sector.
The review, completed by external European legal counsel, is a major milestone for the Company and is now fast approaching completion.
Once executed, the PPSA will ensure the long-term success of the Cabora Bassa Project, which has potential to address the region’s growing demand for a reliable energy source.
Notably, the Mutapa Investment Fund – which committed to underwriting US$5 million of a US$10 million capital raise earlier in 2024 – has been assigned the beneficiary of the PPSA product/profit share arrangement and equity holder, on behalf of the Republic of Zimbabwe.
The Company’s transition from explorer to developer continues to progress and Invictus has achieved significant exploration success this year.
In September we announced eight new high potential prospects had been defined in the eastern Cabora Bassa Basin totalling an estimated 2.9 trillion cubic feet (Tcf) gas and 184 million barrels of condensate.
This was a huge milestone for the Invictus team and highlights significant further potential of the project, in addition to the significant Mukuyu Gas Field discovered in late 2023.
In 2025, our exploration focus will turn to the Musuma prospect to test the Dande play in eastern Cabora Bassa. This prospect has interpreted seismic amplitude support and is estimated to have a recoverable prospective resource of more than 1 Tcf and 73 million barrels of condensate.
Additionally, we plan to complete 3D seismic and further appraisal drilling at the Mukuyu Gas Field to determine future development well locations and commence the planned pilot project to provide gas to power for the nearby Eureka Gold Mine. I look forward to providing further updates once the sequencing and timing of the program is confirmed.
We continue to discuss strategic partnerships and farm-out options with a range of stakeholders that have the potential to provide both the capital and expertise to support further exploration and development of the Cabora Bassa Project.
From a corporate perspective, the successful US$10 million Institutional Placement completed in August provided us with the necessary funds to progress exploration activities and expand our resource base.
The support we received from a range of strategic institutional investors, particularly the Republic of Zimbabwe’s Mutapa Investment Fund, is testament to the quality of the Cabora Bassa Project and reinforces the Government’s confidence in its potential to deliver significant strategic value to the region.
Listing on the Victoria Falls Security Exchange (VFEX) as part of the placement is enabling greater domestic investment in the Company.
Last month I was fortunate to attend the AEC African Energy Week in Cape Town where I was invited to participate in a panel discussion on the vital role gas will play in Africa’s future.
It was great to join likeminded industry leaders and share the journey of our Cabora Bassa Project, outlining how Invictus is set to unlock one of the last frontier basins in onshore Africa, with the potential to drive long-term benefits across communities and industry.
While there are too many people to acknowledge for the work put in behind the scenes over recent months to progress the Cabora Bassa Project, I’ve been humbled by the enormous amount of growing interest in and support for Invictus.
We are on the cusp of something special, not only in terms of delivering a long-term, high value natural resource development project, but helping overcome critical energy issues that have been crippling at regional scale for many years.
I thank our shareholders for their patience and commitment, and look forward to providing more operational and corporate updates as they take shape in 2025.
