Golden Sibanda, Harare Bureau
AUSTRALIA Stock Exchange (ASX) listed miner, Invictus Energy, has announced results of an independent estimate showing potential for more oil and gas at its Muzarabani licence in Mashonaland Central Province.
The latest findings released on Monday strongly support possible existence of 1,3 billion barrels of oil equivalent (boe) or alternatively an estimated resource of 206 billion litres of oil in the Cahora Bassa Basin in Muzarabani. A single oil barrel is equal to about 159 litres.
Invictus said an independent report completed by Getech Group Plc at its Cahorra Bassa Basin project estimates the total prospective resource of 9,25 Tcf (trillion cubic feet) plus 294 million barrels of conventional gas/condensate (gross mean unrisked) across its special grant 4571 in Muzarabani and Msasa prospects.
The Muzarabani prospect is estimated to contain 8.2 Tcf plus 250 million barrels of conventional gas/ condensate (gross mean unrisked) across five horizons while the Msasa Prospect identified under the same permit (SG 4571) is estimated to contain 1.05 Tcf plus 44 million barrels of conventional gas/condensate (gross mean unrisked) across three horizons.
Unrisked reserves already developed by drilling and production and thus have a very reasonable certainty of being produced while risked reserves are either probable or possible reserves depending upon the amount of uncertainty involved and basically represent poorly developed or undeveloped oil and gas fields.
“The Muzarabani Prospect has grown significantly in its scale and represents one of the largest conventional exploration targets globally,” said Invictus Energy managing director, Mr Scott Macmillan.
“The independent report by Getech has estimated the net mean recoverable conventional potential of the massive stacked Muzarabani prospect of 1,3 billion boe (barrels of oil equivalent) consisting of 6.5 Tcf and 200 million barrels of condensate net to Invictus.” The barrel of oil equivalent (boe) is a unit of energy based on the approximate energy released by burning one barrel or 158.9 litres of crude oil.
The BOE is used by oil and gas companies in their financial statements as a way of combining oil and natural gas reserves and production into a single measure.
Mr Macmillan said the estimate for the primary Upper Angwa target within the Muzarabani Prospect has increased to 4,4 Tcf plus 187 million barrels of conventional gas-condensate on a gross mean unrisked basis.
“In addition, the newly identified Msasa Prospect, a new substantial structural prospect within SG 4571 which is also a stacked anticline feature, is estimated to contain 1.05 Tcf and 44 million barrels of conventional gas-condensate on a total gross mean unrisked basis,” he said.
The resource estimates substantial resource potential at the Cahora Bassa Project, located in the company’s 80 percent owned and operated SG 4571 Permit in Zimbabwe.
Mr Macmillan said the updated estimate was the culmination of the work from the Invictus and Getech technical teams over the last 12 months to deliver this result. The substantial work undertaken to integrate the geological and basin modelling studies with the reprocessed and interpreted gravity, magnetic and seismic datasets enabled Invictus to characterise the sub-surface in more detail and identify and quantify the additional area prospectivity.
Invictus has since engaged UK based ENVOI, a leading acquisition and divestiture advisor for the international upstream oil and gas industry, to run the farmout process for special grant 4571. A farmout agreement is an agreement entered into by the owner of one or more mineral leases, called the “farmor”, and another company who wishes to obtain a percentage of ownership of that lease or leases in exchange for providing services, called the “farmee.”
Invictus has received significant industry interest ahead of the data room opening and is currently executing confidentiality agreements with several parties.