Independent oil and gas exploration company Invictus Energy (IVZ) has been accorded a crucial exploration and development licence for its Cabora Bassa Project from the Republic of Zimbabwe.
President Emmerson Mnangagwa cemented a Petroleum Exploration Development and Production Agreement (PEDPA) through its 80 per cent-owned subsidiary, Geo Associates.
“The signing of the (PEDPA) agreement represents major strides in our efforts to tap into our oil and gas deposits, which is a new territory in the country’s mining sector,” commented President Mnangagwa.
The PEDPA with the Government provides the framework for progression and development of the oil and gas project, terms and rights of all parties, including each party’s entitled share of the product, assuming commercial discovery.
Invictus has been granted the right to enter a 25-year production licence following exploration periods and more broadly, provided a framework for Cabora Bassa through the exploration development and
In addition, the PEDPA also consents Special Economic Zone (SEZ) status Cabora Bassa opening the door to a range of budding fiscal incentives such as offshore banking, nil capital gains tax and tax holiday periods.
The project itself includes the Mzarabani Prospect which touts a multi-trillion cubic feet conventional gascondensate target, and is considered potentially the largest, undrilled seismically defined structure onshore Africa.
“This is a significant milestone for the project which provides the security of tenure and the confidence for the significant future investment ahead,” Invictus Energy Managing Director Scott Macmillan said.
Invictus Energy shares are up 8.62 per cent following the announcement, trading at 15.8 cents.
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