HARARE – Invictus Energy (IVZ) has received multiple farm-in offers for its 80 percent-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 Company has received three farm-in offers for the Cabora Bassa Project including an updated bid from Cluff Energy Africa. Ongoing due diligence and internal approvals are being undertaken by additional parties which may result in further bids being received.”
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.
Cluff’s updated bid was not disclosed in Invictus’ market release today, but the company noted that it was evaluating the current bids and working to complete additional due diligence requirements from counterparties, as well as complete binding farm-out and joint operating agreements ahead of the drilling campaign.
“The Company is assessing the current bids and working to complete further due diligence requirements from counterparties including country visits, government approvals and completion of binding Farm Out and Joint Operating Agreements ahead of the upcoming two well drilling campaigns.”
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 (formerly named Muzarabani-1) well pad construction has commenced following the completion of the well site survey and award of the civil works and construction contract. Cultural ceremonies were held yesterday by Traditional Leaders from the Muzarabani and Mbire Districts at the well site.”
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.