Invictus Energy has announced the completion of an independent review of a PPSA in Zimbabwe by European legal counsel.
This review, facilitated by the Africa Legal Service Facility, is a key milestone for Invictus Energy's exploration and production activities in Zimbabwe, specifically concerning the Cabora Bassa Project.
Geo Associates, Invictus Energy's 80%-owned subsidiary, has received indications that the PPSA will be finalised for execution in the coming weeks.
The company holds Special Grant 4571, which includes the Mukuyu gas-condensate discovery.
The agreement aims to ensure fair value sharing among the Government of Zimbabwe, Invictus and its partners.
The PPSA will also provide a robust governance framework for the future management of the Cabora Bassa Project.
The Government of Zimbabwe is providing support for the project through the Mutapa Investment Fund by committing $5m (Z$129.08m) of a $10m capital raise in July 2024.
Invictus Energy managing director Scott Macmillan said: “Completion of the PPSA review by external independent counsel is a significant milestone for Invictus and underscores the company’s commitment to adhering to international best practices and fostering robust partnerships with host governments.
“Once executed the PPSA represents a key step in ensuring the long-term success of the company’s operations and contributing positively to the development of the region's energy sector.
“We are proud to play a pivotal role in Zimbabwe’s critical oil and gas industry and remain committed to delivering sustainable benefits for all stakeholders, including the communities where we operate.
“With the PPSA execution imminent, we look forward to progressing our exploration and production efforts and delivering long-term value for our shareholders.”
Invictus Energy made a significant gas discovery in northern Zimbabwe last December. This discovery followed the drilling of the Mukuyu-2 well at the Cabora Bassa Project, nearly three decades after ExxonMobil ceased its exploration activities in the region.
The gas discovery was specifically made at the Mukuyu-2 sidetrack well in the Upper Angwa formation.
The Mukuyu-2 well, located 6.8km north-east of the Mukuyu-1 well, was drilled using the Exalo Rig 202.
