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ZIMBABWE: Cluff Energy Acquires 25% Interest in Cabora Bassa Project

Invictus Energy has announced that it has executed a farm-in option agreement with Cluff Energy Africa Limited (CEA) for a 2 well
exploration drilling campaign in the Cabora Bassa Project. CEA will fund 33.33% of the costs for a 25% interest in the Cabora Bassa
Project and Invictus will remain as operator.

Cluff Energy Africa is currently assembling a portfolio of African oil and gas exploration assets with the intent of raising further capital
during early 2022 to fund their exploration programs. The Cluff group has previously raised and invested over half a billion dollars
for natural resources projects.

Under the terms of the non-binding agreement, 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 2 wells.
Invictus and CEA will also investigate the options for mitigating carbon emissions from the project including Carbon Capture and
Storage (CCS) or similar solutions to align with Zimbabwe’s strategic objectives.

Invictus Managing Director and CEO, Mr Scott Macmillan, said:
“Invictus is pleased to enter into the option agreement with Cluff Energy Africa and work towards formalizing our relationship in the Cabora Bassa joint venture over the coming months. CEA is a like-minded partner and a close cultural fit, and their team has an outstanding track record of making and monetizing discoveries in Africa.
We look forward to CEA completing their capital raise activities and participating in the exciting basin opening 2 well drilling campaign including drilling the world-class Muzarabani-1 well in the first half of next year.
Invictus is incredibly well placed to achieve significant accretive milestones during 2022 with a number of key catalysts ahead of us.”

Cluff Energy Africa Chairman and CEO, Mr Algy Cluff OBE said:
“Cluff Energy Africa is delighted to be joining Invictus in the Cabora Bassa project and we view this asset 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.
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 finalize our partnership agreements and move forward with the exploration programme.”

Summary of Key Terms

  • Non-Binding Option Agreement: CEA and Invictus have entered into a non-binding option agreement for CEA to participate directly or indirectly in the Cabora Bassa Project. The agreement is non-exclusive and may be terminated by either party before the option expiry date.
  • Option Expiry: CEA must exercise the option by no later than 31 March 2022 to enter into a binding Farm in Agreement and Joint Operating Agreement by 30 April 2022
  • Equity: CEA will acquire a 25% interest in the project for funding 33.33% of the 2 well exploration drilling campaign
    including:
    1. Muzarabani-1 well to a planned minimum depth of 3,000m or basement
    2. 2nd well to be identified following completion of seismic interpretation to a planned minimum depth of 1,500m or basement
  • Back Costs: CEA’s contribution to the historical back costs will be negotiated at the time of entering into a binding
    agreement
  • Well Costs: The CEA 33.33% contribution for a 25% interest for a 2 well drilling campaign is uncapped
  • Evaluation of Carbon Emission Mitigation: Invictus & CEA will investigate options for mitigating emissions from the
    project including Carbon Capture and Storage or similar solutions to align with Zimbabwe’s strategic objectives
  • Approvals: All necessary regulatory and/or shareholder approvals being obtained

Other than in Zimbabwe Cluff Energy also holds 15 offshore blocks in Sierra Leone following the conclusion of the Fourth Offshore Petroleum Licensing Round including blocks 23, 24, 25, 36, 37, 38, 39, 54, 55, 56, 57, 74, 75, 94 & 95.

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