- Farm-in agreement discussions for Invictus Energy’s (IVZ) Cabora Bassa project in Zimbabwe have been terminated
- Last year the company had an offer from an unnamed business for a portion of the project, however the deal needed to pass the due diligence
- Invictus has been unable to satisfactorily complete the required transaction due diligence on the counterparty
- Invictus is now focused on completing the seismic acquisition program, expected to be completed in the third quarter
- On the market, Invictus has dropped 11.4 per cent and is trading at 15.5 cents per share at 10:37 am AEST
The non-binding farm-in agreement for Invictus Energy’s (IVZ) Cabora Bassa project in Zimbabwe has been terminated.
In December Invictus received a farm-in offer for the project, with few details about the offer released because of both parties taking on the necessary due diligence.
However the non-binding agreement has been terminated because of Invictus being unable to satisfactorily complete the required transaction due diligence on the counterparty.
“The parties have ceased discussions,” Invictus told the market this morning.
Invictus is now looking for other interested parties.
The company’s near term focus is completing the seismic acquisition program, which is expected to be finished at the end of the third quarter.
Construction of the camp and the local recruitment campaign for 120 field crew
is being finalised ahead of the commencement of the program.
IVZ’s asset portfolio consists of 101,171 hectares in the Cabora Bassa Basin in northern Zimbabwe. It is currently in the second exploration period which runs to August 2023.
Previously explored by Mobil Oil, the project contains the largest undrilled structure in onshore Africa.
Invictus was trading down 11.4 per cent at 15.5 cents per share at 10:07 am AEST.