Acreage of licence area SG 4571, majority-owned by Sydney-listed Invictus Energy, has increased from 100,000 to 709,300 hectares, the company said on March 28.
Invictus’ 80% owned subsidiary Geo Associates and the Sovereign Wealth Fund of Zimbabwe (SWFZ) have executed an initial agreement regarding the amalgamation. Expanded acreage includes the new Basin Margin play, the company said.
Under the agreement, the SG 4571 licence and application area will be amalgamated with the SWFZ’s MSC003 Cabora Bassa South Reserved Area to cover the entire Cabora Bassa Basin in Zimbabwe. The SG 4571 area increase is now awaiting procedural government gazettal.
The SWFZ will be entitled to a 10% equity back-in-right to the extended SG 4571, which is exercisable within six months post positive final investment decision to develop any discovered resource within the licence.
Invictus will increase the minimum work programme obligation for the current second exploration period to drill two exploration wells, including the Muzarabani-1 prospect and one exploration well in the expanded area. The rig contract with Exalo Drilling, announced in March, accommodates a two-well drill programme anticipated to commence in late June, Invictus said.
Geo Associates and the government of Zimbabwe will also conclude the petroleum production sharing agreement which will encompass the legal and fiscal provisions to govern the project and the development of any discovered resource.