Invictus Energy has received approval of its application to renew the investment licence from the Zimbabwe Investment and Development Authority (ZIDA). ZIDA is the investment promotion body set up to promote and facilitate both foreign direct investment and local investment in Zimbabwe.
The investment licence provides formal recognition of the Company as a foreign investor in the country and enables access to a range of fiscal benefits and incentives. SG 4571 Tenure Extension Geo Associates (Pvt) Ltd (Geo Associates), the Company’s 80% owned subsidiary and holder of Special Grant 4571 has received notification that its application to extend the tenure of the SG 4571 licence for a further three years has been granted, subject to Geo Associates appearing before the Mining Affairs Board to present an overview of the forward work programme. The presentation to the Mining Affairs Board by Geo Associates was scheduled for last week but has been deferred due to COVID and the enforced lockdown in the country.
As a result of the meeting being deferred, Invictus says the Mining Affairs Board has requested a soft copy of the presentation and confirmed that the formal presentation will occur at a future date. Geo Associates confirmed that the soft copy presentation has been lodged with the Mining Affairs board and that it has fulfilled all of its work commitments for its first three year exploration period.
A comprehensive work programme has been proposed for the second three year exploration period, including a commitment to drill a minimum of one exploration well.
Last month Invictus Energy Limited announced that the Company has completed the placement for an equivalent AUD$0.44 million with the Mangwana Opportunities Fund as announced on 30 April 2020 following approval received from the Reserve Bank of Zimbabwe Exchange Control authority.
The Company has continued with the farm-out process of the Cabora Bassa Project saying active discussions with multiple parties are ongoing with the project having passed technical review/assessment and is undergoing commercial evaluation, above ground due diligence and detailed forward program costing (including drilling cost) with these parties according to its latest updates.
During the first quarter, Invictus Energy received an independent drilling cost estimate for a range of well designs (vertical and directional) with the total depth (TD) ranging from 2,000m down to 4,000m. The drilling cost estimates range from US$5.2 million (2,000m vertical well – low side estimate) to US$16.4 million (4,000m directional well – high side estimate). The best estimate for a 3,200m directionally drilled well to test the 8.2 Tcf + 249 million bbl Mzarabani Prospect is US$11.7m (excluding mobilisation) which confirms the ability to test a world class, material target at relatively low cost.