- Invictus Energy (IVZ) gets three farm-in offers for its 80 per cent-owned Cabora Bassa gas project in Zimbabwe
- Of these, one is an updated bid from Cluff Energy Africa who Invictus previously signed a farm-in option deal with for it to fund a portion of an upcoming well drilling program
- Invictus says the well pad construction has commenced for the Mukuyu-1 well, one of the wells to be drilled
- IVZ shares down 2.56 per cent to 19 cents
Invictus Energy (IVZ) has received multiple farm-in offers for its 80 per cent-owned Cabora Bassa gas project in Zimbabwe.
The company said of the three offers, one was an updated bid from Cluff Energy Africa after Invictus signed a farm-in option deal with Cluff in December 2021.
The non-binding agreement involved Cluff funding 33.3 per cent of the costs for a two-well drilling program in exchange for a 25 per cent interest in Cabora Bassa, while Invictus was to remain as operator.
Under the terms of the agreement, Cluff had until March 31 2022 to exercise the option in order to enter into a binding farm-in and a joint venture agreement and obtain the necessary funding for the two wells.
Details of Cluff’s updated bid were not disclosed in Invictus’ market release today.
The company said it was assessing the current bids and working to complete further due diligence requirements from counterparties as well as complete binding farm-out and joint operating deals ahead of the drilling campaign.
It would update shareholders when a preferred bidder was selected.
Invictus has also commenced construction of the well pad for Mukuyu-1 (formerly Muzarabani-1), one of the two wells to be drilled in the upcoming program.
The Mukuyu-1 well will test multiple stacked targets within the greater Mukuyu structure, which is estimated to contain a gross mean unrisked 8.2 trillion cubic feet of gas and 247 million barrels of conventional gas condensate.
IVZ shares were down 2.56 per cent to 19 cents at 11:51 am AEST.