Muzarabani exploration weighs on Invictus’ profitability

BY TATIRA ZWINOIRA

INVICTUS Energy Limited (IEL) widened its losses to AUD481 313 (US$340 160) in the half year ended December 31, 2018 from AUD210 782 (US$148 939) in the previous year, as exploration activities added to the company’s costs.

The company is currently exploring for oil and gas in Muzarabani district in northern Zimbabwe.

In a statement accompanying the company’s results yesterday, IEL managing director Scott Macmillan said Netherland, Sewell & Associates, Inc (NSAI), a worldwide leader of petroleum property analysis, found that the Muzarabani prospect could have a significant amount of gas and oil deposits.

“NSAI concluded that Mzarabani prospect contains a prospective resource of 3,9 tcf (trillion cubic standard feet) of natural gas and 181 mmbbl (million barrels) of condensate; totalling 850 mmboe (million barrels of oil equivalent and gross mean unrisked basis) in the primary target (Upper Angwa alternations member) alone,” he said.

“During the period, the company made significant progress in our Cabora Bassa project work programme. The company announced its maiden prospective resource estimate for the Cabora Bassa project, which is 80% owned and operated by Invictus. The estimate was prepared by NSAI, a worldwide leader of petroleum property analysis to industry and financial organisations and government agencies.”

Macmillan said during the period under review, the company reprocessed the 2D seismic data transcribed from the field tapes located at the Zimbabwe Geological Survey in Harare.

“The early results from this exercise are extremely encouraging and are providing a significant improvement in the data quality and seismic imaging of the subsurface,” he said.

“The reprocessing exercise encompasses the entire Cabora Bassa basin. Following this, the seismic dataset will be reinterpreted in preparation for the quantification of additional prospectivity and an update to the independent prospective resource for the entire SG 4571 area.”

The Cabora Bassa project is said to have similar geological characteristics to the rift basin petroleum systems in Uganda, Kenya, South Sudan, as well as the Australian Perth and Cooper-Eromanga basins.

“As at December 31, 2018, the carrying value of the capitalised exploration and evaluation properties of the consolidated entity was $5 154 741 (June 2018: $4 583 423),” Macmillan said.

During the period under review, IEL’s assets declined to AUD8,39 million (US$5,93 million) from the end of year results ended June 30, 2018 figure of AUD9,61 million (US$6,78 million).

The company reported that it was adequately covered to cover its liabilities with a current ratio of 48,32x.

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