The Invictus Energy Ltd (ASX: IVZ) share price is sinking during early afternoon trade. This comes after the energy producer provided an update to its 80% owned and operated Cabora Bassa Project in Zimbabwe.
When the ASX opened up, the company's share price fell to an intraday low of 15 cents. However, Invictus shares have slightly rebounded at the time of writing, down 2.86% to 17 cents.
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Farm-in agreement terminated
Investors are selling Invictus shares following the latest news to come out of the company.
According to its release, Invictus advised that the farm-in offer received in December last year has been terminated.
The company stated that it was unable to satisfactorily complete the proposed transaction due to diligence on the unnamed counterparty. The offer had been subjected to finalising technical, legal and commercial due diligence by both parties.
As a result, discussions between the pair have stopped. Invictus is continuing to engage with other interested parties at this point in time.
Invictus noted that its near-term focus is now on completing the seismic acquisition program. This is expected to be wrapped up sometime towards the end of the third-quarter of the calendar year.
Seismic contractor, Polaris Natural Resources Inc. has received work permits for its staff to commence 2D seismic operations. Invictus is assisting Polaris with camp construction and the recruitment of 120 field crew ahead of the program start date.
Invictus intends to conduct, process, and interpret a minimum of 400-line kilometres of 2D seismic. The company will use this data to refine the location of the Muzarabani-1 well and identify additional prospects.
Perth-based, Aztech Well Construction has been appointed as the drilling project manager for the upcoming basin opening drilling program.
Invictus Energy share price summary
Despite today's fall, Invictus shares have accelerated by more than 500% over the past 12 months. In 2021 alone, the company's share price is up by 200%, reflecting positive investor sentiment.
Invictus presides a market capitalisation of around $99 million, with approximately 585 million shares on its books.
