Next Investors logo grey

Invictus prospective resource of ‘giant’ scale field potential


Published 05-NOV-2018 12:06 P.M.


4 minute read

Hey! Looks like you have stumbled on the section of our website where we have archived articles from our old business model.

In 2019 the original founding team returned to run Next Investors, we changed our business model to only write about stocks we carefully research and are invested in for the long term.

The below articles were written under our previous business model. We have kept these articles online here for your reference.

Our new mission is to build a high performing ASX micro cap investment portfolio and share our research, analysis and investment strategy with our readers.

Click Here to View Latest Articles

Invictus Energy Ltd (ASX:IVZ), has received highly promising results from a recent independent study aimed at establishing a maiden prospective resource at its Cabora Basa project in Zimbabwe where it owns 80% of permit SG 4571.

The Independent Report by leading petroleum consultancy group NSAI has resulted in net mean recoverable conventional potential of 680 million barrels of oil equivalent, consisting of 3.1 trillion cubic feet (Tcf ) and 145 million barrels of condensate net to Invictus.

Invictus managing director, Scott Macmillan said, “The size of the primary Upper Angwa target alone in Mzarabani Prospect places us in Giant scale field potential.”

A summary of the report findings is shown below.

The independent study from Cabora Bassa shows highly promising results.

It was just this morning that Finfeed featured Invictus and eight other emerging energy stocks to watch, highlighting this upcoming news as potentially market moving for the company.

"There is likely to be significant news flow as the company progresses its work program to de-risk and add value to the Cabora Bassa Project.

"The results of the technical work in the year ahead including an independent maiden prospective resource estimate could provide share price momentum, as would the negotiation of a farmout agreement.

"As can be seen in the chart below, IVZ’s shares nearly doubled post the acquisition of the Cabora Bassa project, but market volatility has seen a retracement in recent months, a trend that could be reversed as the company continues its basin modelling technical work.”

The below chart demonstrates this morning’s strong share price reaction to the news, as well as the exceptionally high trading volumes.

Today's news sparked shareholder interest in IVZ.

Shares surge 80% with more to come

The establishment of a maiden prospective resource has definitely been well received with the company’s shares trading as high as 7.3 cents, representing a 12 month high and an increase of nearly 80% compared with its last closing price.

It is also worth noting that this occurred under all-time record volumes.

However, there could be substantial upside to come as indicated by Macmillan who said, “This estimate excludes the additional prospective horizons above and below the Upper Angwa in the Mzarabani structure, as well as further plays and leads within the SG 4571 area which have the potential to add material prospective resources to the Cabora Bassa Project.

“The high side estimate of over 2.2 billion barrels of oil equivalent (boe) gross is enormous and confirms Mzarabani as potentially the largest undrilled seismically defined structure onshore Africa.”

Invictus will provide estimates on the additional potential at the Cabora Bassa Project which will benefit from the ongoing 2D seismic reprocessing and interpretation work.

Following on from the reprocessing work, a Final Independent Prospective Resource Report encompassing the entire SG 4571 area will be delivered early next year, another relatively near-term potential share price catalyst.

The company will continue with its geological and geophysical studies including additional basin modelling and a further resource estimate leading into a planned marketing program to attract a farm-out partner.

Securing a farmout partner would be a major development for the group as it would provide a degree of certainty around financing and strengthen confidence in the group’s ability to progress through the more detailed exploration stages.

How Invictus transformed itself

The last 12 months has been a transformational period for Invictus with the company entering into a binding sale and purchase agreement to acquire a 100% interest in Invictus Energy Resources Pty Ltd in April.

This effectively provided it with an 80% interest and operatorship in the SG4571 Permit (Cabora Bassa Project) located in Zimbabwe.

The acquisition of Invictus and the interest in the Cabora Bassa Project, which contains the Mzarabani prospect, represented an opportunity to secure first mover advantage and a dominant acreage position covering potentially the largest, seismically defined, undrilled hydrocarbon structure onshore Africa.

The Cabora Bassa Project encompasses the Mzarabani Prospect, a conventional gas-condensate target which at that stage was estimated to be in excess of 1 trillion cubic feet (tcf).

The prospect was defined by a robust dataset acquired by Mobil in the early 1990s that included seismic, gravity, aeromagnetic and geochemical data.

The outcome of this most recent report certainly supports the validity of the Mobil data, suggesting it will go on to be a valuable source of information for future exploration.

Invictus successfully completed a heavily oversubscribed $4.5 million capital raising led by Ashanti Capital to fund the SG4571 exploration program.

The capital raising which was well supported by company directors was completed in June.

General Information Only

S3 Consortium Pty Ltd (S3, ‘we’, ‘us’, ‘our’) (CAR No. 433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information and is for informational purposes only. Any advice is general advice only. Any advice contained in this article does not constitute personal advice and S3 has not taken into consideration your personal objectives, financial situation or needs. Please seek your own independent professional advice before making any financial investment decision. Those persons acting upon information contained in this article do so entirely at their own risk.

Conflicts of Interest Notice

S3 and its associated entities may hold investments in companies featured in its articles, including through being paid in the securities of the companies we provide commentary on. We disclose the securities held in relation to a particular company that we provide commentary on. Refer to our Disclosure Policy for information on our self-imposed trading blackouts, hold conditions and de-risking (sell conditions) which seek to mitigate against any potential conflicts of interest.

Publication Notice and Disclaimer

The information contained in this article is current as at the publication date. At the time of publishing, the information contained in this article is based on sources which are available in the public domain that we consider to be reliable, and our own analysis of those sources. The views of the author may not reflect the views of the AFSL holder. Any decision by you to purchase securities in the companies featured in this article should be done so after you have sought your own independent professional advice regarding this information and made your own inquiries as to the validity of any information in this article.

Any forward-looking statements contained in this article are not guarantees or predictions of future performance, and involve known and unknown risks, uncertainties and other factors, many of which are beyond our control, and which may cause actual results or performance of companies featured to differ materially from those expressed in the statements contained in this article. S3 cannot and does not give any assurance that the results or performance expressed or implied by any forward-looking statements contained in this article will actually occur and readers are cautioned not to put undue reliance on forward-looking statements.

This article may include references to our past investing performance. Past performance is not a reliable indicator of our future investing performance.