ZIMBABWE: Invictus Expands Cabora Bassa Exploration Licence Footprint

Assignment of exploration rights to EPO 1848 and EPO 1849 by Sovereign Wealth Fund
of Zimbabwe Invictus’ 80% owned subsidiary Geo Associates (Pvt) Ltd and the Sovereign Wealth Fund of Zimbabwe have executed an assignment agreement for the exploration rights to Exclusive Prospecting Orders (EPOs) 1848 and 1849.

EPOs 1848 and 1849 are contiguous to the Company’s current SG 4571 licence, with the newly combined area covering the entire conventional oil and gas play fairway in the Cabora Bassa Basin.

The Assignment follows gazettal of the EPOs and Heads of Agreement with the SWFZ, as
detailed in the ASX release on 28 March 2022, where the Parties agreed to collaborate in
exploration for oil and gas within RA MSC003 Cabora Bassa South.

The Exploration Licences cover a combined area of approximately 360,000 hectares, with EPOs 1848 and 1849 each covering an area of approximately 130,000 hectares and the current SG 4571 licence area covering a further 100,000 hectares.

The Exploration Licences include the newly identified Basin Margin play and entire prospective oil and gas fairway covered by the recently completed high resolution CB21 2D Seismic Survey

Baobab-1 selected as Basin Margin play opening well
Following the execution of the Assignment, the Company has selected the Baobab prospect as the commitment well to be drilled in the expanded licence area.

The Baobab prospect will test one of the multiple Basin Margin targets which display similar structural characteristics to the prolific East Africa Rift “String of Pearls” play and provided material discoveries in the Lokichar Basin in Kenya and Albertine Graben in Uganda.

SWFZ back-in entitlement
The Assignment confers all exploration rights and obligations for EPOs 1848 and 1849 from SWFZ to Geo Associates and conversion to a Special Grant upon application following a commercial discovery. The SWFZ will be entitled to a 10 per cent back-in right within six months of an announcement of Final Investment Decision to develop any commercial discovery.

The Assignment will be published in the forthcoming Zimbabwe Government Gazette, after which an updated prospect and lead inventory and technical details of the Baobab-1 well will be provided to the market.

The residual area to the west and east of Exploration Licences in the Cabora Bassa Basin under RA MSC003 Cabora Bassa South, which was initially considered in the HoA with the SWFZ, are not prospective for conventional oil and gas due to outcropping of target stratigraphy to surface.

Invictus Managing Director Scott Macmillan commented:
“We are extremely pleased to have concluded the Assignment Agreement with the Sovereign Wealth Fund of Zimbabwe to expand our exploration footprint in the Cabora Bassa Basin.
“The combined Exploration Licences provide us with a basin master position encompassing the entire conventional oil and gas play fairway and running room in the basin.
“The Exploration Licences are focused on the core prospective area in the basin, which is covered by our CB21 Seismic Survey and minimises our holding costs through the relinquishment of nonprospective areas in the basin.
“We are grateful for the constructive efforts by the Zimbabwe Government to conclude the amendments to the Petroleum Act to facilitate the signing of the Petroleum Production Sharing Agreement (PPSA).
“The PPSA will provide a robust framework to facilitate long-term investment in the oil and gas sector with confidence and ensures the country derives its fair share of any discovered resources.
“We are excited to confirm Baobab-1 as the second well to be drilled in our basin opening
exploration program, which will target the newly identified basin margin play, displaying similar characteristics to the prolific East Africa Rift “String of Pearls” play.
Subject to making an opening discovery with either Mukuyu-1 or Baobab-1, it could potentially provide us with future discoveries on a large scale within the basin.”