The Sunday Mail
Lincoln Towindo
Gas and oil deposits in Muzarabani could be a game-changer for the local economy as they are comparable in size to the recent gas find by French energy major Total in neighbouring South Africa, Invictus Energy managing director Mr Scott Macmillan has said.
While it is estimated that SA’s Brulpadda prospect could hold up to one billion barrels of oil equivalent (BOE), the Muzarabani prospect is forecast at 1,3 billion BOE.
Experts describe BOE as a unit of energy based on the approximate energy released by burning one barrel (158,9 litres) of crude.
One BOE is roughly equivalent to 5 800 cubic feet (164 cubic meters) of typical natural gas.
Africa New Energies chief executive officer Mr Stephen Larkin — an expert in Southern Africa oil and gas exploration — believes that South Africa could potentially generate more than R1trillion (US$71 billion) in revenues over the next 20 years from the prospect, which is located 175km off the country’s southern coast.
Australia Stock Exchange-listed Invictus told The Sunday Mail that the Muzarabani deposits could be a boon for Zimbabwe as they are relatively larger than the two largest gas fields discovered in the world over the last two years.
The company became bullish after a recent independent report by the Getech Group.
“The prospective resource estimates of the primary Upper Angwa target in the Muzarabani Prospect is one of the largest conventional targets globally at the moment.
“To put the size of this prospect in context, the two largest gas discoveries in the world in the last two years are both smaller than the Mzarabani target,” said Mr Macmillan.
“Brulpadda, discovered off the coast of South Africa in February by Total, has been a huge industry talking point over the last six months. lt is estimated to have between 500 million and one billion BOE.
“The Upper Angwa target alone is 945 million BOE.
“The Brulpadda discovery in South Africa has been heralded as a game-changer for South Africa by President Cyril Ramaphosa.
“If Muzarabani is successful, it would mean the same for Zimbabwe,” he said.
Drilling
The recent findings by Getech, he said, pave the way for drilling of an exploration well to ascertain the exact amount of gas and oil deposits.
An Environmental Impact Assessment, which is being undertaken by the Scientific and Industrial Research and Development Centre (SIRDC), is already underway.
Mr Mcmillian said: “We are still in the exploration phase and no oil or gas has been discovered as of yet, but from the work that we have done, there are encouraging signs that it may be present.
“This can only be confirmed through drilling an exploration well.
“However, from the pre-drill volumetric estimates (prospective resource) of the targets, (Muzarabani and Msasa) are so large that if the presence of oil or gas is confirmed in those targets during exploration drilling, then they are of the size that would make them commercial and enable their development.”
Invictus is currently identifying a suitable drill rig capable of reaching depths of up to four kilometres.
The equipment is not available locally.
Last week, Invictus engaged UK-based ENVOI — an acquisition and divestiture (A&D) adviser for the international upstream oil and gas industry — to run the farmout process for its claim.
Farmout is the assignment of part or all of an oil, natural gas or mineral interest to a third party for development.
“The company has received significant industry interest ahead of the data room opening and is currently executing confidentiality agreements with several parties,” added Mr Macmillian.
Mr Paul Chimbodza, the executive chairperson of One Gas Resources, which has a 20 percent stake in the project, said the planned well will cost anywhere between US$15 million and US$20 million.
Drilling is expected in the second half of next year.
According to Mr Chimbodza, the potential gas resource at the Muzarabani claim — estimated at 9,3 trillion cubic feet — “compares very well with the ExxonMobil’s discovery of the coast of Cyprus in the Mediterranean, which is estimated at 8 trillion cubic feet”.
The ExxonMobil discovery, which was announced in February this year, is considered to be the world’s third-biggest natural gas discovery in two years off the coast of Cyprus.
“This latest release (1,3 billion barrels of oil equivalent) puts the Muzarabani project at almost at par in size but to the commercial discoveries made by Total on their Indian Ocean located on the offshore Brulpadda project in South Africa, which is estimated at 1 billion barrels,” said Mr Chimbodza.
“Our 9,25tcf (trillion cubic feet) potential resource also compares very well with the ExxonMobil’s discovery of the coast of Cyprus in the Mediterranean, which is estimated at 8tcf,” he said.
