Invictus Energy Ltd’s strategic partnership with Al Mansour Holdings (“AMH”) backed by His Highness Sheikh Mansour bin Jabor bin Jassim Al Thani, a senior member of the Qatar royal family, has given a major boost to the natural gas and oil exploration project, but some experts are questioning the prospects of the search.
“This a significant capital injection into the project, but the question remains: Is this commercially viable?,” an energy expert told The NewsHawks.
“As Invictus itself admits, dating back to the 1990s, Mobil Oil Corporation explored the area and identified significant natural gas potential but later relinquished the area due to a lack of monetisation options and limited gas markets. The company says it has discovered significant gas-condensate deposits at the Mukuyu-2 well in late 2023 and the impending drilling of the Musuma-1 well in the eastern part of the basin in the second half of this year. But the question still remains: Is this an economic or rather sub-economic project?. There are still serious doubts about the viability of this exploration. The market is sceptical. We will have to see.”
AMH will acquire 19.9% of Invictus and provide up to US$500m in future finance to bring the Cabora Bassa Project to commercial production.
In parallel, AMH and Invictus have established a joint venture company (JVC), Al Mansour Oil & Gas(“AMOG”), an upstream oil and gas company focused on acquiring producing and near-term development oil and gas assets across key jurisdictions in Africa.
Both the investment in Invictus and the formation of AMOG were formally sealed in Harare between the parties at a signing ceremony, also attended by key members of the Zimbabwean government.
HIGHLIGHTS
• Binding MOU & Share Subscription Agreement signed for Al Mansour Holdings (AMH) to acquire a strategic 19.9% equity stake in Invictus at a premium to current market price;
• AMH to provide up to US$500m in conditional future finance to advance Cabora Bassa Project to commercial production;
• AMH led by His Highness Sheikh Mansour bin Jabor bin Jassim Al Thani of Qatar;
• New Africa-focused upstream company Al Mansour Oil & Gas (AMOG) established as a joint venture (JV) between Invictus and AMH;
• AMOG focused on acquiring producing and near-term development oil and gas assets as well as strategic corporate M&A across key African countries;
• Invictus to lead technical, commercial and operational management of the JV portfolio
• AMH to fund acquisitions and development through its Qatar-based investors;
• Shareholder briefing to be held to provide update. CAPTION: Invictus Energy chairman John Bentley (left) and managing director Scott Macmillan (right) with Sheikh Mansour at the US$500 million deal signing ceremony in Harare.
