Sanctions removal a boost for Invictus

THE ASX-listed Zimbabwe-focused oil and gas exploration firm, Invictus Energy, has noted that the US Government’s lifting of the Zimbabwe sanctions programme in place since 2003 removes a hindrance to collaboration and involvement in the project as noted by certain entities previously.

Invictus highlights that the development opens up new opportunities for investment and growth, expressing optimism about the potential for increased co-operation and support from international partners in advancing its exploration and development efforts in Zimbabwe.

In March, the United States made piecemeal adjustments to the sanctions regime imposed on Zimbabwe.

In its March quarterly activities report, the firm said the US Government ended the US Zimbabwe sanctions programme, active since 2003. Additionally, the Department of the Treasury’s Office of Foreign Control (OFAC) removed the Zimbabwe Sanctions Regulations (31 CFR 541) from the Code of Federal Regulations.

“This resulted in some provisions that posed a heightened compliance risk for doing business in Zimbabwe being removed and therefore eliminating a barrier to partnering and participation in the project previously identified by some parties,” the firm said.

As part of the Company’s resource base development plan, Invictus is in discussions on various fronts to bring in strategic partners for the Cabora Bassa Project.

“During the quarter, the Company executed confidentiality agreements with multiple parties including upstream oil and gas and oilfield service companies interested in potentially partnering or financing future activity in the Cabora Bassa Project.

“Additional confidentiality agreements and engagements with regional development banks and upstream oil and gas companies are also in progress.”

The firm noted that during the quarter there was progress in several planned activities as part of the appraisal of the Mukuyu gas-condensate field.

“In progress is a well test design study for Mukuyu-2, aimed at defining optimal test parameters to determine long-lead equipment, a mobilisation plan and timing for the Mukuyu-2 well test.

“In conjunction with the well test design work, the Company is evaluating well services contract bids for the well testing and future exploration and appraisal drilling campaigns to ensure the Company secures services and ancilliary equipment on favourable and cost-effective terms for the upcoming work programme.”

It noted that Post well studies of the data gathered from the Mukuyu-2 drilling campaign is ongoing in order to maximise the insights from the existing wells to guide the appraisal programme and resource assessment.

The Mukuyu 3D seismic survey planning and preparation has been completed with the preferred seismic contractor.

The 3D seismic data will assist delineating reservoir connectivity, fault block configuration, resource volumes and future appraisal well locations.

Given the scale of the Mukuyu Gas Field, which has over 200km2 of structural closure, the 3D seismic will aid the selection of areas in the field for focused appraisal drilling and early development schemes, it noted.

Last year, the company announced a gas discovery at the Mukuyu-2 exploration well in Mbire.

The gas find is anticipated to boost Zimbabwe’s economic growth, export earnings and Government revenue, as well as generate new jobs and downstream industries among other positive outcomes.

The company has stated that the nation may have over 5,5 billion barrels of oil.

A barrel of oil equivalent (boe) is a term used to represent the energy equivalent to that contained in a barrel of crude oil.