Invictus Energy (ASX:IVZ) receives farm-in offers, Mukuyu-1 wellpad construction begins

Highlights

• Invictus Energy Limited (ASX:IVZ) has received three farm-in offers for Cabora Bassa Project.
• Mukuyu-1 (formerly named Muzarabani-1) wellpad construction has commenced.
• Mukuyu-1 well will test multiple stacked targets within the greater Mukuyu structure which independently contains 8.2 Tcf + 247 million barrels of conventional gascondensate (gross mean unrisked).

Independent upstream oil and gas company Invictus Energy Limited (ASX:IVZ) is poised to open one of the last untested large frontier rift basins in onshore Africa – the Cabora Bassa Basin, in northern Zimbabwe via a high impact exploration program. A two-well high impact drilling program is planned to commence in June 2022 at Invictus’ 80% owned and operated Cabora Bassa Project.

Progressing activities at the Project, Invictus notified that it has received three farm-in offers. Additionally, the Mukuyu-1 (formerly named Muzarabani-1) wellpad construction has commenced.

Notably, the world-class Mukuyu prospect is the largest undrilled prospect onshore Africa independently estimated to contain 8.2 Tcf and 247 million barrels of conventional gas condensate (gross mean unrisked basis).

GOOD READ- Invictus Energy’s action-packed half-year report is here!

Project Overview, Source- Company announcements

Farm-in bids received

Invictus has received three farm-in offers for the Cabora Bassa Project. This includes an updated bid from Cluff Energy Africa (CEA). In March 2022, the Company had  granted CEA’s request to extend its farm-in option expiry and submit an updated binding offer.

READ CEA-INVICTUS AGREEMENT DETAILS HERE- Invictus Energy executes option agreement with Cluff Energy Africa

Now that three farm-in offers have been received, Invictus is involved in the following, ahead of the upcoming two well drilling campaign-

• Ongoing due diligence and internal approvals are being undertaken by additional parties. This is likely to result in further bids being received.
• The Company is assessing the current bids and working to complete further due diligence requirements from counterparties. These include country visits, government approvals and completion of binding Farm Out and Joint Operating Agreements.

Invictus’ high impact exploration program in Cabora Bassa Basin | Expert Talks with Scott Macmillan

Mukuyu-1 wellpad construction begins

An important step for the upcoming two well drilling campaign, the Mukuyu-1 (formerly named Muzarabani-1) wellpad construction has finally began. This follows the completion of the well site survey and award of the civil works and construction contract.

On 26 April 2022, cultural ceremonies were held by Traditional Leaders from the Muzarabani and Mbire Districts at the well site.

With these progresses amongst many others, Invictus’ plan seems well underway to commence a 2-well drilling program in June, including the Mukuyu-1 well targeting 8.2 trillion cubic feet and 247 million barrels of conventional gas-condensate, and maturing additional prospectivity to drill a second well in the basin margin play.

At around mid-day on 27 April 2022, IVZ was trading at AU$0.19. The market capitalisation stood at AU$130.10 million.