Invictus Energy executes option agreement with Cluff Energy Africa


  • Invictus Energy Limited (ASX:IVZ) has executed a farm in option agreement with Cluff Energy Africa (CEA) Limited for a 2 well exploration drilling campaign in the Cabora Bassa Project.
  • Muzarabani-1 well will be drilled to a minimum depth of 3,000m or basement and the second well will be identified post seismic interpretation to a minimum depth of 1,500m or basement.
  • CEA will fund 33.33% costs for a 25% interest in the Project and Invictus will remain its operator.

2021 has been transformative for independent oil and gas exploration company Invictus Energy Limited (ASX:IVZ), thanks to the many significant milestones achieved to advance its 80 per cent owned and operated Cabora Bassa Project in Zimbabwe.

Following the trajectory of these milestones, Invictus has now executed a farm in option agreement with Cluff Energy Africa (CEA) for a 2 well exploration drilling campaign in the Project. CEA is an Africa-centered oil and gas explorer with headquarters in London.

Details of farm in option agreement

Invictus implemented a farm in option agreement with CEA, who will fund 33.33 per cent costs for a 25 per cent interest in the Cabora Bassa Project. Invictus will remain the operator of Cabora Bassa Project.

Under the terms of the non-binding agreement-

  • CEA must exercise the option by 31 March 2022 to enter into a binding Farm in Agreement and a Joint Operating Agreement and obtain the necessary funding to meet the Farm in Commitment for 2 wells.
  • Invictus and CEA will investigate the options for mitigating carbon emissions from the project including Carbon Capture and Storage (CCS) or similar solutions to align with Zimbabwe’s strategic objectives.

As of now, CEA is assembling a portfolio of African oil and gas exploration assets to raise g further capital during early 2022 to fund their exploration programs. Notably, the Group has previously raised and invested over half a billion dollars for natural resources projects.Summary of key terms

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Significance of the farm in option agreement

With the agreement now inked, Invictus can work towards formalising its relationship in the Cabora Bassa joint venture over the coming months. Besides, CEA is a compatible partner along with being Invictus’ close cultural fit. The team has an excellent history of making and monetising discoveries in Africa. In Zimbabwe itself, CEA fetched attention for the discovery and development of the largest gold mine in the country at Freda Rebecca.

CEA views the Cabora Bassa asset as a unique high quality but low-cost prospect that has superlative scale. It will form a key pillar in the portfolio of assets that CEA is currently assembling.

All in all, Invictus is well positioned to accomplish substantial accretive milestones next year several key catalysts ahead of it!

On 9 December 2021, IVZ traded at AUD 0.125.





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