Victoria Falls Stock Exchange-listed oil and gas exploration junior, Invictus Energy Limited, has successfully renewed its Special Grant (SG) 4571 licence. This allows the company’s 80%-owned subsidiary, Geo Associates, to continue oil and gas exploration activities in the Cabora Bassa Basin for an additional three years, Mining Zimbabwe can report.
By Rudairo Mapuranga
The extension, formally granted by the Minister of Mines and Mining Development and gazetted under General Notice 2113 of 2024, extends the licence validity until December 19, 2027. This renewal reflects the government’s commitment to fostering exploration in Zimbabwe’s untapped energy sector.
The SG 4571 licence renewal highlights Zimbabwe’s ambition to become a key player in the global energy market. As outlined in Section 301 of the Mines and Minerals Act [Chapter 21:05], the extension provides Geo Associates with the legal framework to continue exploration efforts, including 3D seismic acquisition and appraisal drilling, in the resource-rich Cabora Bassa Basin. The potential discovery of hydrocarbon resources could significantly transform Zimbabwe’s economic and energy security landscape.
This development is crucial as Invictus Energy has already made significant progress in identifying promising hydrocarbon prospects in the area, notably with its Mukuyu-2 well discovery, which revealed potential oil and gas reserves. The renewal allows the company to further explore and appraise these prospects with the aim of unlocking commercially viable quantities of oil and gas.
The SG 4571 licence falls under Zimbabwe’s Mines and Minerals Act, which governs energy resource exploration such as natural gas, oil, and coal bed methane. Under this legal framework, companies are granted an initial three-year licence, renewable based on exploration progress, and can apply for a production special grant upon making commercial discoveries.
Advantages of the SG 4571 Licence Renewal
The extension of the SG 4571 licence brings several benefits to Zimbabwe’s energy sector:
- Continued Investment and Stability: The renewal signals the government’s support for sustained investment in Zimbabwe’s energy sector, enabling Invictus Energy to secure additional funding and resources for its exploration activities.
- Exploration Expansion: The company plans to intensify its work program, including advanced 3D seismic acquisition and further drilling to better understand the basin’s geology and hydrocarbon potential.
- Economic Growth: The successful discovery and development of oil and gas reserves could inject billions of dollars into Zimbabwe’s economy, creating jobs, driving industrial growth, and increasing government revenue.
- Energy Security: Developing local oil and gas reserves would reduce Zimbabwe’s dependence on imported fuel, providing a stable and reliable domestic energy supply.
- Technological Advancements: Exploration activities will introduce cutting-edge technologies to Zimbabwe, fostering local expertise and benefiting the energy sector.
Promising Discoveries in Muzarabani
Invictus Energy’s recent interpretation of the 2023 2D Infill Seismic Survey (CB23 survey) revealed multiple amplitude-supported prospects in the Dande Formation, suggesting substantial hydrocarbon accumulations. These seismic findings have heightened optimism regarding the Muzarabani project, with further exploration expected to uncover commercially viable oil and gas reserves.
Scott Macmillan, Managing Director of Invictus Energy, expressed his enthusiasm, stating, “The new amplitude-supported targets in the Dande Formation present a strong opportunity for gas discoveries, and we are eager to build on our progress to date.”
A Step Toward Energy Independence
With the SG 4571 licence extension, Invictus Energy is poised to advance its ambitious work program, including additional seismic surveys, exploration drilling, and further appraisal to confirm the size and commercial potential of the hydrocarbon resources. The extension also allows the company to apply for a production special grant if significant discoveries are confirmed.
This renewal strengthens Zimbabwe’s position as a prospective energy hub in Southern Africa. Exploration efforts in Muzarabani have the potential to redefine Zimbabwe’s role in the global energy market, providing the country with a strategic advantage in the production and export of oil and gas.
