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Oliver Kazunga

Senior Business Reporter 

INVICTUS Energy, the Australian firm scouting for oil and gas in Zimbabwe’s Cabora Bassa Basin region intends to raise US$6,733 million through a private placement to finance preparations for phase 2 exploration programmes and Mukuyu-2 appraisal well.

The drilling of the second well within the company’s prospective area in Cabora Bassa Basin,  in the Mbire and Muzarabani districts of  Mashonaland Central Province, North of Zimbabwe, follows post well analysis of the Mukuyu-1 prospect.

Results from the evaluation of data from the drilling of Mukuyu-1 confirmed the potential existence of large oil or gas deposits in Muzarabani.

Despite the technical glitches the company experienced recently, which negatively impacted Invictus’ efforts to extract fluid samples to fulfill regulatory requirements necessary to declare a commercial discovery.

Commercial discovery of hydrocarbons in Muzarabani could give Zimbabwe a reliable source of energy and open up opportunities for massive economic growth and development.

The Second Republic’s Vision 2030 is to transform Zimbabwe into an upper-middle-income society by 2030.

“Invictus is pleased to announce a private placement to raise US$6,733 million…following the company’s decision to advance preparations for an appraisal and exploration campaign in Zimbabwe’s Cabora Bassa Basin,” the firm said in an update to shareholders.

Last year, Invictus raised US$8,5 million for at the Cabora Bassa Basin prospect after completing a seismic campaign undertaken by Canadian firm Polaris Natural Resources, which confirmed huge potential for petroleum deposits in the basin.

Invictus managing director Mr Scott Macmillan said “I am pleased with the backing Invictus has received from both existing and new shareholders as we prepare to follow up the successful Mukuyu-1 exploration campaign.

“The placement was oversubscribed and cornered by long-term investor Mangwana Capital, as well as a number of local Zimbabwe partners and the board.

“Preparations of our Phase 2 exploration and appraisal campaign at the Cabora Bassa project are well advanced, with the 2D seismic campaign anticipated to kick off in May.”

He said the seismic campaign will help mature multiple identified leads in the established fairway into drill ready prospects, both along trend from Mukuyu and in the highly prospective Basin Margin play.

“We also remain on track to spud the Mukuyu-2 appraisal well in the third quarter of 2023, targeting multiple hydrocarbon (gas-condensate and potentially light oil) bearing intervals encountered in the Mukuyu-1/ST1 well in the Upper Angwa, Pebbly Arkose and Post Dande formations.

“Again, I would like to thank existing shareholders that participated in the placement for their continued support and would like to welcome new investors that are joining our journey,” he said.

In the early 1990s, a French-based company, Mobil undertook initial seismic surveys but decided not to follow it up on the leads, which indicated significantly more potential for gas, which had a small market then, than oil.

However, using contemporary data processing techniques, Invictus reprocessed the data and has obtained compelling evidence that the underlying geological formations had the domes and traps that may host oil and gas deposits in Cabora Bassa.