A message from the Managing Director
Figure: The Invictus Energy Board convened with key Zimbabwe Ministers this month to discuss project developments.
Invictus finished 2023 by declaring dual discoveries during our Mukuyu-2 drilling campaign, in what was a transformative year for the Company and our shareholders.
The discoveries in the Upper and Lower Angwa gas zones involved the drilling of 3,360m wellbore and recovery of 15 gas and liquid hydrocarbon samples to surface, which marked a major milestone for the Company, transforming Mukuyu from a prospect to a proven gas-condensate field.
Wireline logging calculates a preliminary net pay of 35m and subsequent analysis of gas condensate samples recovered from Mukuyu reveals an ultrahigh quality natural gas composition with negligible impurity. Consistent with our geological modelling, this means gas produced from Mukuyu would require minimal processing and provides a very real pathway to asset commercialisation.
Our discoveries and results to date set an important scene for Invictus to commercialise the Mukuyu field in the future, with several key initiatives to achieve this objective advancing on multiple fronts.
Among them is the long-awaited Petroleum Production Share Agreement (PPSA) with the Republic of Zimbabwe, which sets the legislative and financial framework for the nation and people of Zimbabwe to receive their fair share of benefit from developed resources.
Recent engagement with line Minister of Energy, Minister of Mines, and head of the Sovereign Wealth Find of Zimbabwe respectively from the Invictus Board were extremely constructive, with discussions focused on early monetisation plans, and implementation of the PPSA, which is now within touching range after years of development.
In addition to advancing the PPSA, Invictus was pleased to update its Memorandum of Understanding (MoU) with Mbuyu Energy for the sale and supply of gas to power a 500MW gas-to-power project.
Once developed and expanded to full capacity, the plant will be able to generate up to 1000MW with demand for an estimated 1.4 trillion cubic feet of natural gas. Power generation will support further integration of renewable energy sources into the National Grid and Southern Africa Power Pool (SAPP).
While in country, the Board also took the opportunity to tour the Mukuyu site and meet with team members in Harare and respond to an increasing number of offtake enquiries as the company moves forward with our next steps in the Cabora Bassa.
The upcoming working program includes a well test at Mukuyu-2, preparation for 3D seismic over the Mukuyu gas field and preparing long lead items for a new high impact exploration well, the location of which will be determined following full interpretation of the acquired CB23 infill seismic survey program.
Unfolding activity will be supported by the ongoing support of new and existing investors, with the Company successfully raising approximately AU$16.5 million since last December through a Private Placement and Share Purchase Plan. The unwavering commitment from our stakeholders continually fuels our team’s drive to expand our resource and continue delivering accretive value to shareholders.
Finally, in recognition of results secured by the Invictus team to date with support from contractors and a range of other stakeholders and the tireless effort and dedication of our team, Mukuyu was recognised by Wood Mackenzie as the second largest discovery in sub-Saharan Africa.
While Wood Mac estimated Mukuyu to be 230 million boe resource, I am confident that through our future work program at Mukuyu and our many exploration targets in the Cabora Bassa basin that we will significantly increase this figure, and ultimately value for shareholders and the Company.
Oil and gas discoveries are not made in isolation and we expect to deliver many more from our exceptional portfolio of drill-ready prospects and additional leads.
Having already established a new petroleum province in the Cabora Bassa basin, our expansive and dominant 360,000ha acreage position continues to offer enormous exploration upside in close proximity to a high-demand energy market with established delivery infrastructure.
I’m looking forward to sharing the next chapter of Invictus’s excellent growth story with you as we forge ahead in 2024 and beyond.