Farm-in offers for Invictus’ Cabora Bassa gas project are starting to pour in
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Strong interest in the Cabora Bassa gas project in Zimbabwe, which has the potential to host multi-Tcf of gas, has resulted in Invictus receiving three farm-in offers.
The offers, which included an updated bid from Cluff Energy Africa, are currently being assessed by the company.
Adding interest, ongoing due diligence and internal approvals are currently being undertaken by additional parties, which may result in further bids being received.
Invictus Energy (ASX:IVZ) is currently 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 campaign.
The upcoming Mukuyu-1 well will test multiple stacked targets within the greater Mukuyu structure (formerly known as the Muzarabani) which is independently estimated to contain 8.2 trillion cubic feet (Tcf) of gas and 247 million barrels of conventional gas-condensates.
Wellpad construction has begun following the completion of the well site survey and award of the civil works and construction contract.
Drilling is expected to begin in July this year.
Besides firming up the potential of the Mukuyu prospect as a large, robust, four-way dip anticline, the recent CB21 Survey also mapped 11 major seismic horizons that represent an extensive array of prospects and leads along the basin margin.
Most of these are supported by anomalous seismic amplitude behaviour and the interpretation is being matured.
Invictus (ASX:IVZ) will assess each of the basin margin prospects and select the most suitable candidate to be drilled as the second well in the 2022 drilling campaign.
Should the company define a commercial gas reservoir, it is expected to have difficulty finding buyers given South Africa’s shift away from coal-fired power to gas as a transition fuel.
This article was developed in collaboration with Invictus Energy, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.