So if we were to farm out 30% we would get an estimated US$24m and 2 years of work program fully funded. Note, we need to drill one of the new EPOs by August 2025.
The split at 30% farm down would be:
IVZ - 56%
One Gas - 14%
MIF - 10%
New partner - 30%
The mention of the PPSA being similar to Namibia is interesting. Theirs according to a Recon research note is:
5% royalty
35% Corporate Income Tax
a progressive Additional Profits Tax (APT), levied in tiers once after-tax rate of return levels are achieved.
"Under US$60/bbl oil, government take is estimated to range from ~40% to ~63%, depending on the share of profits being reinvested and the extent to which the APT applies. Overall, Namibia’s petroleum fiscal regime compares favorably to the top producing nations in Africa and to other regimes globally."
"Assuming US$60/bbl Brent, a potential ~1.9 billion-barrel resource development that may ultimately be targeted by ReconAfrica and partner NAMCOR could generate ~US$18 billion in government revenue over its ~30-year life, which represents ~150% of the country’s ~US$12 billion GDP projected for 20216 . Once the project ramps up to full capacity and the up-front infrastructure investment is completed, it could generate more than US$600 million per year in state revenue"
Note- Zimbabwe's GDP for 2024 is projected to be US$34.4 billion. IVZ have stated Mukuyu has an estimated 20 trillion cubic feet + 845 million bbls of conventional gas condensate, and there is an estimated total 5.5 billion barrels of oil equivalent across licence area. On the figures above at US$60/bbl potential govt. revenue is roughly double Zimbabwe's GDP (feel free to fact check this, I'm on the go here).
https://reconafrica.com/wp-content/uploads/Quester-Advisers-20210418-Project-Reco-Report.pdf
