I am pleased to provide an update to shareholders on recent activity both at the forefront and behind the scenes, which included a successful Board visit to Zimbabwe.
Excitingly, Musuma-1 has been confirmed as the first high-impact exploration well to be drilled outside the Mukuyu gas-condensate discovery area. Musuma – one of eight high potential prospects identified during the 2023 seismic campaign in the Eastern Cabora Bassa Basin – is a technically compelling prospect, supported by consistent ‘flat spots’ that strongly suggest the presence of hydrocarbons.
We selected Musuma-1 as our next exploration well for a number of reasons. Firstly, our technical team is very excited about the Musuma prospect and the seismic attributes it displays make it a really attractive target. Following an intensive review of the new CB23 seismic data and integrating the Mukuyu data we gathered across the two drilling campaigns, we have a greater understanding of the petroleum system in the Cabora Bassa basin.
The results from the wells and work we have completed has significantly upgraded our view of the shallow prospectivity in the Dande and Forest Formations. The seismic amplitude support in the Musuma prospect across multiple seismic lines of varying vintages further enhances our confidence, and in addition could be part of a greater closure encompassing the Mopane and Mururo prospects.
Musuma is a material target estimated at 1.2 Tcf gas + 73 million barrels of condensate (gross, mean unrisked) and coupled with it being situated at shallow depth (<1,500m), which allows for a simple, low cost vertical well that can be easily drilled.
Success at Musuma would unlock a significant new resource base in the eastern area of our vast acreage position in Cabora Bassa and add provide additional optionality to Mukuyu. This would enable fast-tracking of the pilot production project at Eureka Gold Mine (proof-of-concept) and laying the foundation for full field development in the Cabora Bassa Basin, in line with Invictus’ early gas monetisation strategy.
Additionally, drilling the Musuma-1 well in the east of our licence area prior to further drilling/testing in Mukuyu allows for 3D seismic acquisition over Mukuyu to occur with limited noise interference from drilling operations, which would significantly affect the quality of the seismic data.
Following the drilling of Musuma-1, the well will be logged and evaluated. In the case that hydrocarbons are encountered in significant quantities, comprehensive well testing will be the Company’s next priority. A well testing program (involving flow tests of the reservoir intervals) is designed to measure flow rates, reservoir pressure and fluid characteristics, and will be coordinated with a Mukuyu drilling/testing campaign to realise cost and operational efficiencies.
Preparations to commence drilling in the second half of the year are well underway, and we look forward to providing further updates as works and exploration campaigns progress.
The Board visit to Zimbabwe in April gave us the opportunity to meet with senior government officials, traditional leaders of local communities, as well as our strategic partners including the Mutapa Investment Fund. These in-person engagements are critical as we continue to build long-term relationships that support the development of Zimbabwe’s energy sector.
A major focus of this visit was progressing the Petroleum Production Sharing Agreement (PPSA) with the Government of Zimbabwe. The decision to consolidate the PPSA and the Petroleum Exploration Development and Production Agreement (PEDPA) into a single, streamlined framework will simplify administrative processes and strengthen governance as the Cabora Bassa Project moves closer to development. We hope to be able to announce the execution of the finalised agreement near-term.
Pleasingly in mid-February we received Environmental Social Impact Assessment (ESIA) approval for pilot production activities at Cabora Bassa, which include the Eureka Gold Mine Gas-to-power Project. The ESIA approval is another significant milestone for Invictus and reaffirms our commitment to responsible development in the Cabora Bassa Basin.
We are currently in the process of finalising pilot production planning, securing all necessary permits, and advancing discussions with additional potential offtake partners, both domestically and regionally with a view to expanding the Pilot Project phase.
Other notable developments over the past few months include the extension of the Cabora Bassa Basin SG 4571 Licence, which allows further exploration and appraisal work programs to be completed over the next three years.
We are excited to be attending the Africa Energies Summit in London next week. This is one of the leading events for upstream oil and gas companies, investors and governments focused on Africa’s energy future. We look forward to providing an update on the Cabora Bassa Project and continuing to build momentum with strategic partners.
While we recognise there have been some delays across some previously planned workstreams, I’m confident the foundations we have established position us well for a productive year.
Shareholders and stakeholders will be kept abreast of material announcements and updates as they develop, including preparations for Musuma-1, the appraisal program in Mukuyu, execution of the PPSA and project partnering.
The Invictus team remains focused on delivering sustainable value, not just for our shareholders, but for the communities we operate in and for the energy future of southern Africa.
Thank you for your continued support as we progress through this transformative phase.
