Gas explorer Invictus Energy has struck what it says is “a transformational” deal with Qatar’s Al Mansour Holdings, securing long-term funding for its Cabora Bassa project in Zimbabwe.
The agreement gives Al Mansour a 19.9% equity stake in Invictus, and comes with a commitment of up to US$500 million to progress the Mukuyu gas discovery to commercial production.
Al Mansour Holdings is backed by Sheikh Mansour bin Jabor bin Jassim Al Thani, a member of the Qatar royal family. By paying US$24.5 million for the 19.9%, Al Mansour is paying more than the current share price. A representative from Al Mansour will join the Invictus board. Al Mansour has also committed up to US$500 million in future funding, depending on Invictus proving that at least one of its gas finds can be commercially developed. To get there, Invictus must carry out more drilling, flow testing, and seismic surveys, key key steps used to confirm whether a discovery can be produced profitably.
“We’ve got to do that to unlock the rest of that finance, so it’s firmly on the agenda,” Invictus MD Scott Macmillan says. “Now that we’ve got this funding secured, we’re off the treadmill of the capital markets. Now we can start planning bigger (exploration) campaigns, which are far more efficient.” – (NewZWire)
