ZIMBABWE’S oil and gas operator, Invictus Energy Limited incurred a loss after tax of Australian $2,6 million (US$1,9 million) for the half year ended 31 December 2021, up 164% compared to the same period in 2020.
For the year ended December 31, 2020, the company incurred A$993 755 (US$718,579) loss.
The Australian Securities Exchange-listed firm is exploring for oil and gas in the Cabora Bassa Basin in Zimbabwe, which is one of the largest under-explored interior rift basins in Africa.
Total net cash outflows from operating and investing activities stood at US$5,9 million compared to US$523745,66 achieved in the previous period.
The group intends to continue cash expenditure on operating activities on the Cobora Bassa Project.
During the reporting period, the company said the Cabora Bassa 2021 seismic survey (CB21 Survey) was completed with a total of 864km of high resolution 2D seismic data acquired.
A total of 424km of data was acquired in SG 4571 (including a 24km test line).
“Following approvals, a further 440km of contiguous data was acquired in an existing application area. The CB21 Survey significantly exceeded the company’s minimum work programme obligations of 300km of 2D seismic data for the current licence period, which runs to June 2024,” Invictus chief executive Scott Macmillan
“The company commenced the processing of the CB21 survey data which produced some encouraging early results, particularly the strong amplitude anomalies and potential direct hydrocarbon indicators observed in the Muzarabani structure and along the basin margin fault.”
“The initial processing results has revealed a variety of structural and stratigraphic features providing for a target rich environment for the upcoming drilling programme. In addition, the previous survey acquired by Mobil will be reprocessed by EarthSignal in conjunction with the CB21 Survey to integrate the legacy dataset and apply insights to the entire Cabora Bassa Basin,” he said.
Macmillan said the firm executed a farm in option agreement with Cluff Energy Africa Limited (CEA) for a two-well exploration drilling campaign in the Cabora Bassa project. CEA will fund 33,33% of the costs for a 25% interest (excluding additional back costs) in the Cabora Bassa project and Invictus will remain as
Under the terms of the non-binding agreement, CEA must exercise the option by March 31 2022 to enter into a binding farm in option agreement and a joint operating agreement, obtaining the necessary funding to meet the farm in commitment for two wells.
Invictus and CEA will also investigate the options for mitigating carbon emissions from the project including carbon capture and storage (CCS) or similar solutions to align with Zimbabwe’s strategic objectives.
In the period under review, Invictus executed a MoU with Exalo Drilling SA to drill the Muzarabani-1 exploration well. The company also executed an option for an additional exploration well for the basin opening drilling campaign, scheduled to commence in June 2022.
Following extensive evaluation of several suitable rig options, on both a technical and commercial basis, the company selected the Exalo #202 Rig for the upcoming drilling programme.
“A binding rig agreement is anticipated to be signed in the March 2022 quarter. The #202 Rig is currently engaged in drilling operations in Tanzania and will be mobilised to the project once that programme has been completed,” he said.