Sponsored

Invictus Energy terminates non-binding farm-in agreement, seismic acquisition program accelerates

Summary

  • Invictus Energy Limited (ASX:IVZ) has terminated the non-binding farm-in agreement related to its 80%-owned-and-operated Cabora Bassa Project in Zimbabwe.
  • The Company was unable to complete the necessary transaction due diligence on the counterparty suitably.
  • While discussions for the non-binding farm-in agreement continue with interested parties, Invictus’ near-term focus is on completing the seismic acquisition program at the Project.

In the past few months, Invictus Energy Limited (ASX:IVZ) has ramped up developments at its 80%-owned-and-operated Cabora Bassa Project in Zimbabwe. An independent oil and gas explorer, Invictus, takes pride in its significant asset portfolio, which constitutes highly prospective 250,000 acres within the Cabora Bassa Basin. This is a strategic location to provide a solution to the Southern African energy crisis.

Special Grant 4571 contains the significant multiTCF Mzarabani as well as Msasa conventional gas-condensate prospects. The Mzarabani Prospect is the largest undrilled conventional oil and gas prospect onshore Africa, where 8.2Tcf + 247 million barrels of conventional gas-condensate (~1.6 billion boe) has been independently verified.

GOOD READ: Invictus achieves notable milestones on fast-paced journey at Cabora Bassa Project

SG 4571 location, Source: Company’s presentation, Mar 2021

Invictus is looking forward to commencing a seismic campaign to refine Mzarabani drilling targets and identify additional prospectivity. Subsequently, a high-impact basin-opening drilling campaign will be conducted.

While developments continue to this end, the Company has updated about the non-binding farm-in agreement related to the Cabora Bassa Project, which has been terminated.

Rationale behind termination of non-binding farm-in agreement

Invictus could not satisfactorily complete the transaction due diligence on the counterparty - an essential step for the deal to progress. Consequently, the parties have ceased discussions.

Last year in December, Invictus had received a non-binding offer for farm-in related to the Project. However, the proposed transaction remained subject to a few conditions like the conclusion of legal, commercial, and technical due diligence by the involved parties, agreements and approvals by government authorities and implementation of binding Farm-Out Agreement(s).

ALSO READ: Can the new deal with Zimbabwe boost Invictus Energy’s Cabora Bassa Project?

However, the Company continues to engage with additional interested parties for farm-in.

Invictus’ near-term focus

The Company’s near-term focus is on completing the seismic acquisition program, which may conclude approximately at the end of Q3. Currently, the camp construction and the local recruitment campaign for 120 field crew are being finalised ahead of the forthcoming commencement of the program.

DON’T MISS: What’s in store for Invictus Energy?

Earlier this year, Polaris Natural Resources Inc. was awarded a seismic acquisition contract. It has now been granted work permits for its expatriate staff. Pacing the program’s progress, Polaris is mobilising personnel to Zimbabwe to commence the 2D seismic campaign.

RELATED READ: Polaris to support Invictus Energy’s first 2D seismic program at Cabora Bassa

Besides, Aztech Well Construction was appointed Drilling Project Manager for the forthcoming basin-opening drilling program.

Stock performance

At 2:53 PM AEST on 9 July 2020, IVZ quoted AU$0.16, with a trading volume of over 9 million shares. The market capitalisation stood at AU$102.38 million. Interestingly, the stock has more than tripled in value this year.

INTERESTING READ: This is why Invictus Energy stock is riding high today

Comment


Disclaimer

Ad

GET A FREE STOCK REPORT


Top Penny Picks under 20 Cents to Fit Your Pocket! Get Exclusive Report on Penny Stocks For FREE Now.


   
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. OK