Zimbabwean President Emmerson Mnangagwa on Thursday announced that Australian Securities Exchange (ASX) listed entity Invictus Energy (IVZ), has discovered oil and gas deposits in the southern African country’s Mashonaland Central Province.
Invictus shares are currently suspended from trading on the ASX pending the release of the announcement regarding the Maiden Prospective Resource Estimate.
The ASX said IVZ’s shares "will remain halted until the earlier of, either the release of relevant information, or the commencement of trading on Thursday 1 November 2018".
In accordance with ASX’s Listing Rule 17.2, a trading halt was granted on Tuesday 30 October 2018, pending the completion and the subsequent announcement on Friday of the Invictus Maiden Prospective Resource Estimate.
Resource estimation is used to determine and define the ore tonnage and grade of a geological deposit from the developed block model.
According to Invictus, the project is located in the most prospective acreage in the Cabora Bassa Basin and includes the Mzarabani prospect.
The project is close to existing pipeline infrastructure for the domestic and export markets. It is located in a non-farming area on state land, just two hours from the capital, Harare, by road.
Such is the confidence around the Mzarabani prospect that a $4.5m capital raising to fund IVZ’s exploration pursuits was heavily oversubscribed and managed by Ashanti Capital.
The funds will go towards a focused exploration programme on the Cabora Bassa Project, including reprocessing of the gravity and aeromagnetic data and 1990s vintage Mobil 2D seismic.
Invictus, which has already spent around $1m in its first year, is expecting to spend between $10m to $20m for each well to be drilled at the Muzarabani Prospect.
Invictus managing director Scott Macmillan is on record saying drilling will cost between $10m to $20m for each well depending on the depth.
"If we make a discovery, however, the total investment will then be measured in billions, including wells, processing facilities, pipelines and associated infrastructure over the life of the project."
Mnangagwa said his government had agreed to a production share deal with the energy firm once its oil and gas find at Muzarabani reaches commercial production.