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The additional Dentale D9 (15 metres net hydro-
carbons) interval can be tested and completed in
the future and has an estimated OOIP range of
4-15mn barrels of oil.
Production Guidance: In conjunction with
the South Tchibala 1HB-ST well performance,
VAALCO’s full year 2022 net production guid-
ance is being reduced by 750 NRI bpd of oil at the
midpoint to a range of 9,000-9,500 NRI bpd of
oil. Previously VAALCO’s full year 2022 produc-
tion guidance was 9,500-10,500 NRI bpd of oil.
VAALCO Energy, August 3 2022
Invictus Energy awarded

three carbon offset programs are quantified in the form of emission first cradle to grave carbon neutral oil and gas

projects in Zimbabwe reductions which then generate carbon credits. projects in the world (on a Scope 1 and Scope
Verified Carbon Standard: Invictus has cre-
2 basis).
Invictus Energy has been awarded three carbon ated a new division, Miombo Forest Carbon The status as a full lifecycle carbon neutral
offset projects in Zimbabwe. Investments (MFC), to develop and manage the project will also enhance the ability to finance the
Award of Ngamo, Gwayi & Sikumi REDD+ NGS REDD+ project. development of any discovery and broaden the
projects: The Company has entered a 30-year It will also manage the carbon credits gener- range of potential financing options and lenders.
contract with the Forestry Commission of ated, with plans for them to be certified through It will also allow Invictus to sell fully offset oil
Zimbabwe (FCZ) for the development of the Verra’s internationally recognised Verified Car- and gas production from its portfolio, enhanc-
Ngamo-Gwayi-Sikumi (NGS) REDD+ project, bon Standard (VCS) program. ing its appeal to increasingly carbon conscious
which is renewable for a further 30 years, as part Verra has developed the world’s leading vol- buyers.
of the company’s sustainable plan to manage untary, rigorous international standards to ver- Voluntary Carbon Market: The Voluntary
emissions. The NGS REDD+ project will enable ify emissions reductions generated by carbon Carbon Market (VCM) gives companies, non-
the Company to fully offset all Scope 1 & 2 emis- reduction projects, such as REDD+, are real, profit organizations, governments, and individ-
sions generated across the entire lifecycle of the measurable, additional and permanent. uals the opportunity to buy and sell carbon offset
Cabora Bassa Project. The VCS allows third party-validated pro- credits. The VCM is expected to play an increas-
REDD+ was created by the United Nations jects to generate Verified Carbon Units (VCUs) ingly important role that will enable companies
under its Framework Convention on Climate by implementing activities that reduce deforest- to purchase carbon credits to offset unavoidable
Change, or UNFCCC, to reduce carbon emis- ation against a defined baseline. This will allow emissions and reach their net-zero or carbon
sions from deforestation and forest degradation. carbon credits to be registered as VCUs, which neutral goals.
It also supports local communities through can either be used by Invictus or sold on the Vol- The estimated volume of carbon credits
socio-economic projects in line with principles untary Carbon Market. required globally is projected to increase at least
on sustainable management, forest protection The Company anticipates the completion of 20-fold by 2035, with volumes increasing 30 to
and nature conservation. accreditation of the project and registration and 40-fold from current levels in scenarios consist-
The NGS REDD+ project areas were awarded issuance of the carbon credits to take approx. 12 ent with the Paris Agreement on climate change
by the FCZ through an international tender pro- months. by 2050 (source: EY Net Zero Centre report
cess and cover a combined 301,565 hectares of Invictus to offset Cabora Bassa Scope 1 & 2022).
indigenous forest in Zimbabwe’s Matabeleland 2 emissions across project lifecycle: The NGS This is expected to result in a strong pricing
North province. REDD+ project has the potential to generate outlook as shown in Figure 2, but is dependent
A five-year pilot REDD+ project, adminis- more than 30mn carbon credits over its initial on carbon credit quality and attributes as well as
tered and funded by the Global Environmental 30-year life (subject to independent accredita- the types of co-benefits generated by the project.
Facility through the World Bank as part of the tion), based on the biomass assessment com- The NGS REDD+ project is expected to gen-
Hwange Sanyathi Biodiversity Corridor, was pleted in the pilot REDD+ project in Ngamo erate significantly higher volumes of carbon
completed in the Ngamo and Sikumi forests and Sikumi and comparable REDD+ projects credits than what will be required to offset the
in early 2020, including biomass assessments, operating in the region. Company’s own Scope 1 and Scope 2 emissions.
which has provided proof of concept for the NGS The Company will undertake independent Excess credits generated will be sold on the
REDD+ project. verification to determine the total carbon credit Voluntary Carbon Market, creating an addi-
A study by the FCZ estimates between 1992 pool for the NGS REDD+ as part of the planned tional revenue stream for the Company. One
and 2017 approximately 6.5mn hectares of for- VCS accreditation process. carbon credit is equivalent to saving 1 tonne of
ests (~25% of total) were lost, land clearance for The total Cabora Bassa Project Scope 1&2 CO2 equivalent emissions (t-CO2e).
agricultural purposes, wood for fuel energy use emissions are estimated at less than 15mn The profits generated by the NGS REDD+
and other unsustainable forest land use practises. tonnes across the entire project lifecycle, based project will be shared between MFCI, FCZ and
Invictus and FCZ will develop the NGS on a hypothetical 8 trillion cubic feet natural gas the local community to fund further protection
REDD+ project to protect the indigenous forests development. of forests through investment in positive social,
by implementing programs to mitigate deforest- Assuming a successful exploration campaign, economic and environmental projects.
ation activities. The resulting benefits of these the Cabora Bassa Project could be one of the Invictus Energy, August 3 2022

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