GOVERNMENT and Australian Stock Exchange-listed company Invictus Energy yesterday agreed that while the Cahora Bassa Basin in Muzarabani possess all the elements for a working petroleum system, only drilling of an exploration well in 2020 will confirm the presence of oil and gas.
Drilling the well is estimated to cost US$20 million.
In a cautionary statement released yesterday, Invictus said: “Although the Cabora Bassa Basin possess all the elements for a working petroleum system, a discovery can only be confirmed through drilling of an exploration well. Please see the cautionary statement relating to prospective resources attached to this announcement for further detail.”
The cautionary statement spoke on the need for further exploration to determine quantity of the resource.
“With respect to the Prospective Resource estimates contained within this report, it should be noted that the estimated quantities of petroleum that may potentially be recovered by the future application of a development project may relate to undiscovered accumulations.
“These estimates have an associated risk of discovery and risk of development. Further exploration and appraisal may be required to determine the existence of a significant quantity of potentially moveable hydrocarbons,” it said.
Invictus consulted a global expert in the oil industry on the Muzarabani project.
Government has pledged all its support.
Government, through the Minister of Mines and Mining Development Winston Chitando yesterday also said only drilling of an exploration well in Muzarabani would confirm the presence of oil and gas in the area.
In a statement, Minister Chitando said: “I refer to the statement made by Invictus on the Australian stock exchange and hereby comment as follows – Invictus will only now be releasing their resource statement on Monday morning Australian time, the statement by His Excellency and my technical analysis pointed to the need to drill an exploration well to confirm the indicated resources.”
“The statement further indicated that the current resource estimate to be released on Monday has been signed off by an International Oil Consultant.”
President Mnangagwa on Thursday addressed a press conference in the presence of officials from Invictus and updated the nation on oil and has prospects in Muzarabani.
He pledged Government’s full support for the project and indicated that if all goes according to plan, Zimbabwe would have its first oil exploration well by 2020.