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Zimbabwe oil project attracts more investors

by Staff reporter
05 Nov 2019 at 06:45hrs | Views
AUSTRALIA-Stock Exchange-listed miner, Invictus Energy, says it has received "strong" interest from exploration and production companies as well as private equity investors seeking to partner it in its proposed oil project in Muzarabani.

The company has confirmed the potential of oil in Muzarabani, Cabora Bassa Basin, 25 years after one of the United States of America's major oil firms, Mobil, carried out similar studies in the area and left.

In its quarterly update for the period ended September 30, 2019, Invictus Energy said although no formal agreements have been made as the process was still ongoing, it had received an overwhelming response from different firms interested in the oil project.

"During the quarter, the company commenced the formal farm out process for the Cabora Bassa Project and opened the physical data room in London.

"The process has garnered interest from a wide variety of exploration and production companies as well as private equity companies focused on upstream investments," said Invictus.

"The company has received strong interest from these parties to partner with Invictus for the company's forward work programme.It said prospective contractors on the project were presently evaluating the opportunity in the oil project.

Under the first phase of exploration work, Invictus Energy has been able to mature the acreage and prospectivity in about 12 months since the acquisition of the project and complete the work programme obligations ahead of schedule. "The technical work for this phase of project has been completed and the company is focused on completing the farm out process in progress.

"The next phase of the exploration programme will include the drilling of a high impact basin opening well in the Cabora Bassa Basin," said Invictus Energy.

Meanwhile, the company in September this year announced that the Environmental Management Agency (EMA) had approved an Environment Impact Assessment prospectus for the proposed oil project in Muzarabani.

The announcement was made after the oil and gas exploration and mining company in July this year had released results of independent estimates showing improved potential of oil and gas discovery at the prospective area. The findings strongly supported the possible existence of 1,3 billion barrels of oil equivalent (BOE) or alternatively an estimated resource of 206 billion litres of oil in the Cabora Bassa Basin in Muzarabani.

The approval of the EIA prospectus allows the undertaking of a full EIA assessment. The EIA study is being carried out by independent environmental consultants, the Scientific & Industrial Research & Development Centre (Sirdc).

The Muzarabani prospect is estimated to contain 8,2 Tcf plus 250 million barrels of conventional gas/ condensate (gross mean unrisked) across five horizons while the Msasa Prospect identified under the same permit (SG 4571) is estimated to contain 1,05 Tcf plus 44 million barrels of conventional gas/condensate (gross mean unrisked) across three horizons.

Unrisked reserves already developed by drilling and production have a very reasonable certainty of being produced while risked reserves are either probable or possible reserves depending upon the amount of uncertainty involved and basically represent poorly developed or undeveloped oil and gas fields.

Source - chronicle