Invictus begins rig sourcing for oil project
Australian Stock Exchange-listed Invictus Energy has commenced rig sourcing aimed at kick starting the drilling of two wells at its Muzarabani Oil and Gas Project expected to commence this year.
The miner has also selected its preferred contractor to undertake a seismic acquisition campaign in 2021.
Invictus Energy is undertaking the highly prospective Muzarabani oil and gas project in Mashonaland Central Province in partnership with local consortium One Gas Resources which holds 20% stake.
The Muzarabani Oil and Gas Project is held under Special Grant No4571 issued to a locally-registered company, Geo Associates (Pvt) Ltd.
The two shareholders in Geo Associates are the ASX-listed Invictus Energy (80%) and the local partner One Gas Resources (Pvt) Ltd (80%).
Geo Associates executive chairman Paul Chimbodza told Business Times this week that the project partners were bullish despite the Covid-19 pandemic and rig sourcing for the project has since commenced.
The project partners have also progressed with the Production Sharing Agreement which is nearing finalisation for signing.
“We got a three year tenure extension to our Special Grant. We are moving to do more seismic surveys after the rains and rig sourcing is in progress to drill the first two wells this year,” Chimbodza said.
“We haven’t been impacted that much by the pandemic and we have progressed with the Production Sharing Agreement which is nearing finalization for signing and completed and got EIA license.”
Following the completion of the field reconnaissance programme and after receipt of submissions from multiple vendors, the company has selected its preferred contractor to undertake a seismic acquisition campaign in 2021.
The company will commence detailed planning post formal contract award to enable the acquisition campaign to commence following the conclusion of the rainy season.
Invictus Energy is planning to acquire a minimum of 400 line km of 2D seismic which exceeds the work program obligations for the current (2nd) exploration period.
During the quarter the company completed a further placement (Second Tranche) under the share subscription agreement announced on April 30, 2020.
The placement raises the equivalent of A$222,148 through the placement of 3,404,186 shares at a share price of A$0.066; a 9% premium to the last closing price.
The shares issued to Mangwana will be held in escrow for 6 months from the date of completion. The agreement makes provision for a further equity investment by Mangwana for the project over the next 12- 24 months as well as assisting the company in achieving its strategic goals in the country.
Invictus Energy has plans to invest about US$40m on initially drilling two wells at its Muzarabani oil project. To date the company has invested close to US$3.5m towards preliminary works at the site.
The company has started to aggressively move towards operationalising the oil and gas project where the Australian Stock Exchange listed firm is boasting of immense financial muscle to undertake the project which is expected to run into billions.
Invictus Energy targets to drill two wells in 2021- a move expected to determine the future of the project.
Business Times