Why the Invictus Energy (ASX:IVZ) share price is dipping lower today

This oil and gas exploration company is re-focusing its efforts on the 2D seismic program.

| More on:
bars showing share price dip

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

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.

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.

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Share Market News

Ten happy friends leaping in the air outdoors.
Share Gainers

Here are the top 10 ASX 200 shares today

Investors started the week off in a good mood today.

Read more »

A cute young girl with curly hair sips a glass of milk through a straw with a smile on her face.
Broker Notes

Up 37% this year, why Macquarie expects A2 Milk shares to keep outperforming

Macquarie remains bullish on A2 Milk shares heading into 2026. Let’s see why.

Read more »

Woman and man calculating a dividend yield.
Share Market News

Big week for markets: Here's what to watch

Tech earnings, rate speculation, and Aussie inflation data could shake markets this week — but long-term investors should keep their…

Read more »

ASX shares Business man marking buy on board and underlining it
Broker Notes

Leading brokers name 3 ASX shares to buy today

Here's why brokers believe that now could be the time to snap up these shares.

Read more »

dissapointed man at falling share price
Share Fallers

Why Boss Energy, Elsight, Pilbara Minerals, and Whitehaven Coal shares are falling today

These shares are starting the week in the red. But why?

Read more »

An older female ASX investor holds a gangster-style fist pump pose showing off gold rings with dollar signs on them.
Broker Notes

Why Macquarie forecasts Northern Star shares are set to surge 55%

Macquarie believes Northern Star shares are well-placed to rocket higher.

Read more »

A group of people gathered around a laptop computer with various expressions of interest, concern and surprise on their faces. All are wearing glasses.
Share Market News

ASX 200 tech stock near record high, is it still a buy?

This company's soaring share price and rising profits are turning heads.

Read more »

Excited couple celebrating success while looking at smartphone.
Share Gainers

Why Bellevue Gold, Bubs, Clarity Pharmaceuticals, and Regal Partners shares are rising today

These shares are starting the week on a positive note.

Read more »