Invictus pens potential farm-in with Cluff Energy Africa for two-well campaign
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Invictus has executed a farm-in option agreement with Cluff Energy Africa Limited (CEA) for a two-well exploration drilling campaign in the Cabora Bassa Project in Zimbabwe.
The company will remain as operator, and CEA will fund 33.33% of the costs for a 25% interest in the project.
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 two wells.
The companies will also investigate the options for mitigating carbon emissions from the project including carbon capture and storage or similar solutions to align with Zimbabwe’s strategic objectives.
The campaign is scheduled to commence in 1H 2022 with the drilling of Muzarabani-1 which will be drilled to a planned minimum depth of 3,000m or basement.
The second well is expected to be identified following completion of seismic interpretation to a planned minimum depth of 1,500m or basement.
“Invictus is pleased to enter into the option agreement with Cluff Energy Africa and work towards formalising our relationship in the Cabora Bassa joint venture over the coming months,” Invictus Energy (ASX:IVZ) managing director and CEO Scott Macmillan said.
“CEA is a like-minded partner and a close cultural fit, and their team has an outstanding track record of making and monetising discoveries in Africa.”
CEA is currently assembling a portfolio of African oil and gas exploration assets with the intent of raising further capital during early 2022 to fund its exploration programs.
CEA chairman and CEO Algy Cluff said the company views the Cabora Bassa project as a rare, high-quality but low-cost opportunity that has world-class scale.
“We believe it will form a key pillar in the portfolio of assets that we are currently assembling,” he said.
“I am also excited to be bringing the Cluff group back to Zimbabwe having enjoyed previous success in the resources sector in the country with the discovery and development of the largest gold mine in the country at Freda Rebecca.
“We look forward to working closely with Invictus over the coming months to finalise our partnership agreements and move forward with the exploration program.”
This article was developed in collaboration with Invictus Energy Limited, 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.